ENVIRONMENTAL ACCOUNTING AS A CATALYST FOR IMPROVING THE OPERATIONAL PERFORMANCE OF OIL AND GAS CONGLOMERATES IN NIGERIA
- Post by: airjournals
- June 26, 2023
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This study aims at highlighting environmental accounting as a catalyst for improving the operational performance of Oil and Gas Conglomerates in Nigeria. Environmental accounting is becoming increasingly relevant for organizations worldwide as they seek to integrate environmental concerns into their decision-making processes. The research was ex post facto research which made use of secondary data obtained from the annual reports and accounts of the oil and gas firms under study covering the period which spanned from 2008 to 2022. The main theory that underpinned the research was the stakeholder theory. The study firstly employed descriptive statistics and graphical representation using E-Views software to check for the trends, linearity or otherwise of the data. Regression model was applied in determining the extent of the effect exerted on corporate performance by environmental losses and environmental liabilities. The result of the analysis showed that environmental losses have significant negative effect on return on assets the sampled oil and gas firms in Nigeria. The study concluded that management, accountants and other stakeholders in the Nigerian oil and gas firms should take proactive role in the environmental protection process so as to minimize costs and enhance corporate performance. The study therefore recommends that management of oil and gas firms should endeavor to increase the level of awareness of environmental cost and comply with environmental laws so as to curtail environmental charges. This study recommends that environmental losses should be charged separately of other losses, this will give room for more accountability on its effect on the companies’ corporate performance.
Keywords: Operational Performance; Oil and Gas Conglomerate; Environmental Laws; Companies’ Corporate Performance
BY Eze, Joseph Chukwudi