NEXUS BETWEEN ENVIRONMENTAL, ECONOMIC REPORTING AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES (DOWNSTREAM SECTOR) IN NIGERIA

Abstract

The financial performance of companies in the oil and gas sector tends to fluctuate over the years, with
some years showing profits and others resulting in losses. This inconsistency of the financial performance
has raised concerns about the reasons behind it. This study examines the influence of environmental and
economic reporting on the financial performance of listed oil and gas companies in Nigeria's downstream
sector from 2013 to 2023. Using a panel research design, secondary data was gathered from the
companies' annual reports. The sample includes nine companies in the downstream oil and gas industry.
The key variables in this study are Environmental Reporting and Economic Reporting as independent
variables, with Financial Performance (measured by Net Profit Margin) as the dependent variable. Firm
Size is used as a control variable. The data was analyzed using descriptive statistics, correlation, and
regression analysis with E-Views 12 software. The results indicate that environmental reporting has an
insignificant effect, while economic reporting has a significant effect on the net profit margin of listed oil
and gas companies in Nigeria. The study concludes that both environmental and economic reporting
positively influence the net profit margin of these companies. It recommends that companies should
comply with environmental regulations and focus on the interests of various stakeholders to improve their
financial performance.