Assessment of Environmental Accounting Disclosure and Financial Performance: Evidence of Listed Oil and Gas Companies in Nigeria

This study examines the effect of environmental accounting disclosure on the financial performance of listed oil and gas companies in Nigeria over the period 2016–2020. Using an ex post facto research design, the study relies on secondary data obtained from the annual reports and financial statements of five selected firms. Environmental accounting disclosure was measured through a disclosure index constructed using content analysis, while financial performance was proxied by return on assets, profit after tax, and total assets. Panel data regression techniques were employed, including fixed and random effects models, with the Hausman test used to select the most appropriate estimator. The results show that environmental accounting disclosure has a negative and significant effect on return on assets, indicating short term efficiency pressures associated with environmental compliance costs. However, the findings also reveal a positive and significant relationship between environmental disclosure and both profit after tax and total assets, suggesting long-term profitability and asset growth benefits. The study concludes that environmental accounting disclosure supports long-term financial sustainability despite short-term efficiency trade-offs.