Environmental disclosure and firm characteristics: evidence from Nigeria.

Sa'id, Muhammad; Hassan, Omaima A.G.; Zhang, Xin

Abstract

Prior studies show that there is a dearth of literature about the quality of voluntary environmental disclosure (EDQ) from emerging markets. This study advances the literature by investigating EDQ and its association with firm characteristics in one of the top 20 global climate polluters, i.e. Nigeria, employing a multi-theory approach. It uses hand-collected data from a variety of sources for all listed companies on the Nigerian stock exchange (NSE) for the year 2017, which makes the largest dataset used about Nigeria in this research area. It employs a weighted self-constructed disclosure index method to measure EDQ. Then, it uses ordinary least squares (OLS) and stepwise regression analysis to investigate the association between EDQ and various company characteristics. The results show low-quality environmental disclosure among listed companies on the NSE. Consistent with predictions from legitimacy theory, the results show no statistical differences in EDQ among listed companies based on their gearing ratio, liquidity, or age. However, consistent with stakeholder, agency, and legitimacy theories, listed companies which are large, more profitable, multinational, and those from environmentally sensitive industries are associated with higher EDQ. The outcomes of this study are of interest to investors, companies, regulators, as well as academics.

Citation

SA'ID, M., HASSAN, O.A.G. and ZHANG, X. [2025]. Environmental disclosure and firm characteristics: evidence from Nigeria. International journal of accounting, auditing and performance evaluation [online], (accepted).

• Journal Article Type: Article
• Acceptance Date: Mar 31, 2025
• Deposit Date: Apr 2, 2025
• Journal: International journal of accounting, auditing and performance evaluation
• Print ISSN: 1740-8008
• Electronic ISSN: 1740-8016
• Publisher: Inderscience
• Peer Reviewed: Peer Reviewed
• Keywords: Voluntary environmental disclosure; Environmental disclosure; Corporate social responsibility; Emerging markets; Nigeria
• Public URL: https://rgu-repository.worktribe.com/output/2782423