ENVIRONMENTAL SUSTAINABILITY AND SHAREHOLDER VALUE CREATION: AN EMPIRICAL REVIEW OF LISTED OIL AND GAS COMPANIES IN NIGERIA
Author(s): Ikwuo Ama Kalu, Okiri Cyprain, Odama Patric Ojeka, Enyinnaya Oko Egwu,
Institute(s): N/A
Volume 4 / Issue 1
Abstract
This study investigated the influence of environmental sustainability disclosure on shareholder value creation in listed oil and gas companies in Nigeria. Specifically, it assessed how green environmental policies and green environmental projects affect the return on equity (ROE) of these firms. An ex post facto research design was adopted, with a population of eight listed oil and gas firms, from which six firms were sampled. The study relied on secondary data collected from companies annual report within ten years period 2015-2024, used purposive sampling method and hypotheses were tested using panel estimated generalized least squares at a 5% level of significance. The findings revealed that green environmental policies exert a positive but statistically insignificant effect on ROE (β = 0.0327; p = 0.5990), while green environmental projects have a positive and statistically significant impact on ROE (β = 0.1745; p = 0.0000). The study concludes that investors are more responsive to tangible and observable sustainability initiatives. Consequently, it recommends that management of listed oil and gas firms enhance the implementation and enforcement of existing green environmental policies.
Number of Pages: 12
Number of Words: 5013
First Page: 1
Last Page: 12