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DETERMINANTS OF ENVIRONMENTAL DISCLOSURE BY PUBLIC INTEREST MANUFACTURING COMPANIES IN NIGERIA
Abstract
The study is an empirical analysis of the determinants of environmental disclosures using oil and gas companies in Nigeria. Specifically, the study objectives are to examine the effect of Firm size, Profit, Leverage and Audit firm type on environmental disclosures. The cross-sectional research design was utilized in undertaking the study. A sample of 15 companies drawn from the oil and gas sectors of the Nigerian stock exchange for 2008-2013 financial years was used for the study. Secondary data was sourced from the annual reports of the sampled companies while the Binary regression technique was used as the data analysis method. The finding of the study shows that firstly; there is a significant relationship between company size and corporate social responsibity disclosures. Secondly there is no significant relationship between Profit and corporate social responsibity disclosures. Thirdly, there is no significant relationship between Leverage and corporate social responsibity disclosures. Finally, there is no significant relationship between audit firm type and corporate social responsibity disclosures. The study concludes that the voluntary stance of environmental reporting has often be used as a cliché for companies to under report their effect on the environment and this is responsible for the negligence of several corporate entities with regards to corporate social and environmental reporting. The study recommends that incentives be put in place to motivate disclosures.
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