Mandatory Social and Environmental Disclosure: A Performance Evaluation of Listed Nigerian Oil and Gas Companies Pre- and Post-Mandatory Disclosure Requirements
Journal of Finance and Accounting
Volume 6, Issue 2, March 2018, Pages: 56-68
Received: Apr. 14, 2018; Accepted: May 2, 2018; Published: May 22, 2018
Views 1826      Downloads 303
Mohammed Sani D., Lecturer Centre for Entrepreneurship Development, Federal University, Dutse, Nigeria
Article Tools
Follow on us
Corporate social and environmental disclosure is still evolving and weak in developing countries and to stimulate the practice, many developing countries are putting in place regulations. Code of Corporate Governance for listed companies in Nigeria issued in 2011 mandated certain disclosure. Therefore, the main aim of this study is to assess volume of disclosure by listed Nigerian oil and gas companies six (6) years pre- and six (6) years post the code. Legitimacy theory is employed to underpin the study while corporate characteristics are tested to determine their influence on volume of the disclosure. Modified word count content analysis of annual reports and accounts of sample companies is used to determine volume of disclosure while two sample t-tests give the statistical mean of the disclosure. Panel Corrected Standard Error Regression analysis is used to determine the influence of corporate characteristics on the volume of the disclosure. Results from words counts content analysis indicated 53% increase in volume of social disclosure and 235% increase in volume of environmental disclosure six years post-code over disclosure six years pre-code. Two sample t-tests show that the mean of disclosure six years post code is greater than the mean of disclosure six years pre- code. Panel regression analysis results show that corporate size, have positive and significant relationship with disclosure. Obtained results is perhaps consistent with legitimacy theory.
Mandatory Social and Environmental Disclosure, Nigerian Stock Exchange, Code of Corporate Governance
To cite this article
Mohammed Sani D., Mandatory Social and Environmental Disclosure: A Performance Evaluation of Listed Nigerian Oil and Gas Companies Pre- and Post-Mandatory Disclosure Requirements, Journal of Finance and Accounting. Vol. 6, No. 2, 2018, pp. 56-68. doi: 10.11648/j.jfa.20180602.12
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
KPMG 2017. The KPMG Survey of Corporate Responsibility Reporting 2016, KPMG, The Netherlands.
Gray, R., Kouhy, R. and Lavers, S. 1995b. Methodological themes Constructing a research database of social and environmental reporting by UK companies. Accounting, Auditing & Accountability Journal. 8(2): pp.78-101.
Tsang, E. W., 1998. A longitudinal study of corporate social reporting in Singapore: The case of the banking, food and beverages and hotel industries. Accounting, Auditing & Accountability Journal, 11(6), pp.624-636.
Clarke, J. and Gibson‐Sweet, M., 1999. The use of corporate social disclosures in the management of reputation and legitimacy: a cross sectoral analysis of UK top 100 companies. Business Ethics: A European Review, 8(1), pp.6-13.
Campbell, D., Craven, B. and Shrives, P., 2003. Voluntary social reporting in three FTSE sectors: a comment on perception and legitimacy. Accounting, Auditing & Accountability Journal, 16(4), pp.668-681.
Roca, L. and Searcy, C. 2012. An analysis of indicators disclosed in corporate sustainability reports. Journal of Cleaner Production. 20(1): pp.103-118.
Alonso‐Almeida, M., Llach, J. and Marimon, F., 2014. A closer look at the ‘Global Reporting Initiative’ sustainability reporting as a tool to implement environmental and social policies: A worldwide sector analysis. Corporate Social Responsibility and Environmental Management, 21(6), pp.318-336.
Bollen, B., Skully, M. and Wei, X. 2010. The Financial Services Reform Act and Australian bank risk. Banks and Bank Systems. 5(1): pp.58-64.
Doucin, M. 2013, The French legislation on extra-financial reportng: built on consensus, Ministry of Ecology, sustainable development and Energy, France
UK Parliament. 2006. Companies Act. Act ed. UK: UK.
Theron, C.2008. Environmental disclosures under the new Companies Act. UK: Environment Law. pp. 417 (5) a - c. Solicitor, Lawrence Graham, London.
KPMG 2016, The KPMG Survey of Corporate Responsibility Reporting 2016, KPMG, The Netherlands.
Ioannou, I. and Serafeim, G., 2014. The consequences of mandatory corporate sustainability reporting: evidence from four countries. Harvard Business School Research Working Paper, (11-100).
NSE. 2011. Code of Corporate governance for public companies in Nigeria. Nigeria: Nigerian Stock Exchange. [Accessed 26 June 2014]
Paul, E. et al. 2015. Financial statement presentation. UK: Pricewaterhouse Coopers. [Accessed 15 July 2016].
Mahmud, S. and Islam, N. 2015. Compliance with Disclosure in Financial Audit: A Comparative Study of Some Selected Industries in Bangladesh. International Journal of Novel Research in Marketing Management and Economics. 2(1): pp.14-26.
Gray, R. H. and Bebbington, K. J. 2001. Accounting for the environment. 2nd ed ed. London: Sage.
Jenkins, H. and Yakovleva, N., 2006. Corporate social responsibility in the mining industry: Exploring trends in social and environmental disclosure. Journal of cleaner production, 14(3), pp.271-284.
Carroll, A. B. and Shabana, K. M., 2010. The business case for corporate social responsibility: a review of concepts, research and practice. International Journal of Management Reviews, 12(1), pp.86-106.
Glassman, J. K. 2006. Corporate Social Responsibility. American Review: pp.45.
Kotler, P. and Lee, N. 2005. Corporate social responsibility. doing the most good for your company and your cause. Hoboken: John Wiley & Sons.
Azapagic, A. 2003. Systems Approach to corporate sustainability: A general management framework. Process, Safety and Environmental protection. Transactions of the Institution of Chemical Engineers. 81(5): pp.303-316.
Adams, C. A. 2002. Internal organizational factors influencing corporate social and ethical reporting: Beyond current theorising. Accounting, Auditing & Accountability Journal. 15(2): pp.223-250.
Brammer, S. and Pavelin, S. 2008. Factors influencing the quality of corporate environmental disclosure. Business Strategy and the Environment. 17(2): pp.120-136.
Ayadi, S. D. 2004. Determinants of the corporate decision to disclose stakeholders’ reports in France. In: 27th Annual Congress of the European Accounting Association 2004. Prague: Czech Republic.
Hackston, D. and Milne, M. J., 1996. Some determinants of social and environmental disclosures in New Zealand companies. Accounting, Auditing & Accountability Journal, 9(1), pp.77-108.
Alkababji, M. W. 2014. Voluntary disclosure on corporate social responsibility: a study on the annual reports of Palestinian Corporations. European Journal of Accounting Auditing and Finance Research. 2(4): pp.59-82.
van de Burgwal, D. and Vieira, R. O. 2014. Environmental Disclosure Determinants in Dutch Listed Companies. USP, São Paulo. 25(64): pp.60-78.
Tagesson, T. et al. 2009. What Explains the Extent and Content of Social and Environmental Disclosures on Corporate Websites: A Study of Social and Environmental Reporting in Swedish Listed Corporations. Corporate Social Responsibility and Environmental Management. 16(6): pp.352-364.
Samaha, K. and Dahaway, K. 2011. An empirical analysis of corporate governance structure and voluntary disclosure in volatile capital market: The Egyptian Experiences International Journal of Accounting and Performance Evaluation. 7(1): pp.61-93.
Prado-Lorenzo, J. M., Gallego-Álvarez, I., García-Sánchez, I. M. and Rodríguez-Domínguez, L., 2008. Social responsibility in Spain: practices and motivations in firms. Management Decision, 46(8), pp.1247-1271.
Luo, Y. & Wu, D. H. 2010, "Shang shi gong si she hui ze ren bao gao ying xiang yin su yan jiu [Determinants of corporate social responsibility] vol. 169 p. 18 -23.
Nandi, S. and Ghosh, S., 2013. Corporate governance attributes, firm characteristics and the level of corporate disclosure: Evidence from the Indian listed firms. Decision Science Letters, 2(1), pp.46-68.
Menassa, E., 2010. Corporate social responsibility: An exploratory study of the quality and extent of social disclosures by Lebanese commercial banks. Journal of Applied Accounting Research, 11(1), pp.4-23.
Chu, C. I., Chatterjee, B. and Brown, A. 2013. The current status of greenhouse gas reporting by Chinese companies’ A test of legitimacy theory. Managerial Auditing Journal. 28(2): pp.114-139.
Suttipun, M. and Stanton, P. 2012. Determinants of Environmental Disclosure in Thai Corporate Annual Reports. International Journal of Accounting and Financial Reporting. 2(1): pp.99-115.
Echave, J. O. and Bhati, S. S., 2010. Determinants of social and environmental disclosures by Spanish Companies.
Glancy, D. L. 2016, Opportunity in leveraged companies, Putman Investment, US.
Alsaeed, K., 2006. The association between firm-specific characteristics and disclosure: The case of Saudi Arabia. Managerial Auditing Journal, 21(6), pp.476-496.
Zhang, J. 2013, Determinants of Corporate Environmental and Social Disclosure in Chinese Listed Mining, Electricity and Chemical Companies Annual Reports, Edith Cowan University.
Zarzeski, M. T., 1996. Spontaneous harmonization effects of culture and market forces on accounting disclosure practices. Accounting Horizons, 10(1), p.18.
Juhmani, O., 2014. Determinants of Corporate Social and Environmental Disclosure on Websites: The Case of Bahrain. Universal Journal of Accounting and Finance, 2(4), pp.77-87.
Sulaiman, M., Abdullah, N. & Fatima, A. 2014, "Determinants of environmental reporting quality in Malaysia. International Journal of Economics, Management and Accounting, vol 22 no 1 pp. 63-90.
Akrout, M. M. and Othman, H. B. 2013. A study of the determinants of corporate environmental disclosure in MENA emerging markets. Journal of Reviews on Global Economics. 2: pp.46-59.
Poznanski, J., Sadownik, B. & Gannitsos, I. 2013, Financial Ratio Analysis: A guide to useful ratios for understanding your social enterprise’s financial performance.
Abd-Elsalam, O. H., 1999. The introduction and application of international accounting standards to accounting disclosure regulations of a capital market in a developing country: The case of Egypt.
Aly, D., Simon, J. and Hussainey, K., 2010. Determinants of corporate internet reporting: evidence from Egypt. Managerial Auditing Journal, 26(2), pp.182-202.
Coebergh 2011.
Hussainey, K., Elsayed, M. and Razik, M. A. 2011. Factors affecting corporate social responsibility disclosure in Egypt. Corporate Ownership and Control Journal. 8(4): pp.432-443.
Falola, T. O. and Heaton, M. M. 2008. A history of Nigeria. 1 ed. United Kingdom: Cambridge University Press.
BP 2017. BP (2017), “BP Statistical Review of World Energy 2017”, available at (accessed 02 April 2018).
Jike, V. T. 2004. Environmental Degradation, Social Disequilibrium, and the Dilemma of Sustainable Development in the Niger-Delta of Nigeria. Journal of Black Studies. 34(5): pp.686-701.
Ebegbulem, J. C., Ekpe, D. and Adejumo, T. O. 2013. Oil Exploration and Poverty in the Niger Delta Region of Nigeria: A Critical Analysis. International Journal of Business and Social Science. 4(3): pp.279-287.
Mabogunje, A. L. 1968. Urbanization in nigeria. London: University Press.
Osuoka, A. and Roderick, P., 2005. Gas flaring in Nigeria: A human rights, environmental and economic monstrosity. 11672-UNI Nigeria. Amsterdam, Netherlands: friends of the Earth/International climate Justice Program. [Accessed 16 January, 2014].
Tuodolo, F. 2009. Corporate Social Responsibility: Between Civil Society and the Oil Industry in the Developing World. An International E-Journal for Critical Geographies. 8(3): pp. 530-541.
World Bank (2017), available at (accessed 27 April 2017).
Benedict, A. O. 2011. Tragedy of Commons: Analysis of Oil Spillage, Gas Flaring and Sustainable Development of the Niger Delta of Nigeria. Journal of Sustainable Development. 4(2): pp.200-210.
Allen, F. 2012. The Enemy Within: Oil in the Niger Delta. World Policy Journal. 29(4): pp.46-53.
Ifeadi, N., Ekaluo, U. and Orubuma 1985. Treatment and disposal of drilling muds and cuttings in the Nigerian petroleum industry. In: International Seminar on the Petroleum Industry and Environment 1985. Nigeria: Nigerian National Petroleum Corporation.
IMF 2016, World Economic Outlook, International Monetary Fund, USA.
Dobers, P. and Halme, M. 2009b. Editorial Corporate Social Responsibility and Developing Countries. Corporate Social Responsibility and Environmental Management. 16: pp.237-249.
John, W. E., Daniel, C. E. and Angel, H., 2012. Environmental Performance Index and Pilot Trend Environmental Performance Index. USA: University of Yale Centre for Environmental Law and Policy. [Accessed 14 October 2013].
Iyoha, F. O., 2010. Social accounting: An imperative for enterprise development. Nigerian Accountant, 43(1), pp.4-8.
Akano, A. Y. et al. 2013. Corporate Social Responsibility Activities Disclosure by Commercial Banks. In Nigeria. European Journal of Business and Management. 5(7): pp.173-185.
Effiong, S. A., Akpan, E. I. and Oti, P. A., 2012. Corporate Governance, Wealth Creation and Social Responsibility Accounting. Management Science and Engineering, 6(4), pp.110-114.
Uwalomwa, U. and Jafaru, J. 2012b. Corporate Environmental Disclosures in the Nigerian Manufacturing Industry: A Study of Selected Firms. An International Multidisciplinary Journal, Ethiopia. 6(3): pp.71-83.
Amaeshi, K. M. et al. 2006. Corporate social responsibility (CSR) in Nigeria: Western mimicry or indigenous practices? In: International Centre for Corporate Social Responsibility Nottingham University Business School Nottingham University 2006. UK: Business School, Nottingham University, pp.1-44.
Akano, A. Y. et al. 2013. Corporate Social Responsibility Activities Disclosure by Commercial Banks. In Nigeria. European Journal of Business and Management. 5(7): pp.173-185.
Osazuwa, N. P., Okoye, F. A. and Izedonmi, F. 2013. Corporate Attributes and Environmental Disclosures of Nigerian Quoted Firms: An Empirical Analysis. Research Journal of Social Science and Management. 3(6): pp.150-158.
Hassan, A. and Kouhy, R., 2016. From environmentalism to corporate environmental accountability in the Nigerian petroleum industry: do green stakeholders matter? International Journal of Energy Sector Management, 9(2).
Mohammed, S. D. 2016. Social and Environmental Disclosures: A Comparative Analysis of Listed Nigerian and UK Oil and Gas Companies. PhD. Abertay University
Hassan, A. and Kouhy, R., 2014. Evaluating gas-flaring-related carbon emission performance in the Nigerian upstream sector: a comparison of duo methods. African Journal of Economic and Sustainable Development, 3(3), pp.264-27
Hassan, A. 2012. Corporate Environmental Accountability in the Nigerian Oil and Gas Industry: The Case of Gas Flaring. PhD. Abertay University.
Weitzman, E. A. and Miles, M. B. 1995b. Computer programs for qualitative data analysis: A software sourcebook. USA: Thousand Oaks, CA: Sage
Gray, R., Owen, D. and Adams, C., 1996. Accounting & accountability: changes and challenges in corporate social and environmental reporting. Prentice Hall.
Adams, C. A., Coutts, A. and Harte, G., 1996. Corporate equal opportunities (non-) disclosure. The British Accounting Review, 27(2), pp.87-108.
Tilt, C. A., 1994. The influence of external pressure groups on corporate social disclosure: some empirical evidence. Accounting, Auditing & Accountability Journal, 7(4), pp.47-72.
Guthrie, J. E. and Parker, L. D. 1990. Corporate Social Disclosure Practice: A Comparative International Analysis. Advances in Public Interest Accounting. 3: pp.159-176.
Tinker, T. and Neimark, M. 1987. The role of annual reports in gender and class contradictions at general motors. Accounting, Organizations and Society. 12(1): pp.71-88.
Guthrie, J. E. and Parker, L. D. 1990. Corporate Social Disclosure Practice: A Comparative International Analysis. Advances in Public Interest Accounting. 3: pp.159-176.
Gray, R., Kouhy, R. and Lavers, S. 1995a. Corporate social and environmental reporting: A review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal. 8(2): pp.47-77.
Archel, P., Husillos, J., Larrinaga, C. and Spence, C., 2009. Social disclosure, legitimacy theory and the role of the state. Accounting, auditing & accountability journal, 22(8), pp.1284-1307.
Rosser, A. and Edwin, D. 2010. The politics of corporate social responsibility in Indonesia. The Pacific Review. 23(1): pp.1-22.
Freeman, R. E. 1984, Strategic Management: A stakeholder Approach, 1st edn, Pitman, Boston.
Friedman, A. L. and Miles, S. 2006. Stakeholders: Theory and practice. 1 ed. ed. UK: Oxford University Press.
Berman, S. L. et al. 1999. Does Stakeholder Orientation Matter? The Relationship between Stakeholder Management Models and Firm Financial Performance. The Academy of Management Journal. 42(5): pp.488-506.
Darsu, Mad and Yusoff, 2014
Huang, C. L. and Kung, F. H., 2010. Drivers of environmental disclosure and stakeholder expectation: Evidence from Taiwan. Journal of Business Ethics, 96(3), pp.436-461.
Roberts, R. W. 1992. Determinants of corporate social responsibility disclosure: an application of stakeholder theory. Accounting, Organizations and Society. 17(6): pp. 595-612.
Suchman, M. C. 1995. Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review. 20(3): pp. 571-610.
Deegan, C. M. 2007. Financial accounting theory. 2nd ed ed. Australia: McGraw-Hill.
Branco, M. C. and Rodrigues, L. L. 2006. Communication of corporate social responsibility by Portuguese banks: A legitimacy theory perspective. Corporate Communications: An International Journal. 11(3): pp.232-248.
Donaldson, T. 1982. Corporations and morality. UK: Prentice Hall.
Deegan, C. and Rankin, M. 1996. Do Australian Companies Report Environmental News Objectively? An Analysis of Environmental Disclosures by Firms Prosecuted Successfully by the Environmental Protection Authority. Accounting, Auditing & Accountability Journal. 9(2): pp.50-67.
Tilling, M. V. and Tilt, C. A. 2010. The edge of legitimacy Voluntary social and environmental reporting in Rothmans’ 1956-1999 annual reports. Accounting, Auditing & Accountability Journal. 23(1): pp.55-81.
Lindblom, C. K. 1994. The implications of organizational legitimacy for corporate social performance and disclosure. In: Critical Perspectives on Accounting Conference 1994. New York, NY.
Loate, et al., 2017. Acid Mine Drainage in South Africa: A Test of Legitimacy Theory. Journal of Governance and Regulation 4(2):26-49.
Haji, A. A. 2013. Corporate social responsibility disclosures over time: evidence from Malaysia. Managerial Auditing Journal. 28(7): pp.647-676.
Khan, A. R., Muttakin, M. B. and Siddique, J. 2012. Corporate governance and corporate social responsibility disclosures: evidence from an emerging economy. Journal of Business Ethics. 114(2): pp.207-223.
Hrasky, S. 2012. Carbon footprints and legitimation strategies: symbolism or action? Accounting, Auditing & Accountability Journal. 25(1): pp.174-198.
Mahadeo, J. D. and Oogarah-Hanuman, V. 2011a. A Longitudinal Study of Corporate Social Disclosures in a Developing Economy. Journal of Business Ethics. 104(4): pp.545-558.
Patten, D. M. 1991. Exposure, Legitimacy and Social Disclosures. Journal of Accounting and Public Policy. 10(4): pp.297-308.
Collis, J. and Hussey, R. 2014. Business research: A practical guide for undergraduate & postgraduate students. 4th ed. UK: Basingstoke: Palgrave Macmillan.
Krippendorff, K. 1980. Content analysis: An introduction to its methodology. Newbury Park: Sage Publications.
Zeghal, D. and Ahmed, S. A. 1990. Comparison of Social Responsibility Information Disclosure Media Used by Canadian Firms. Accounting, Auditing & Accountability Journal. 3(1): pp.38-53.
Belal, A. and Lubinin, V. 2009. Russia: Corporate social disclosures. In: S. O. Idowu and W. L. Filho. eds. Global practices of corporate social responsibility. Germany: Springer-Verlag Berlin Heidelberg. pp.165-179.
Williams, S. M. 1999. Voluntary environmental and social accounting disclosure practices in the Asia-pacific region: an international empirical test of political economy theory. The International Journal of Accounting. 34(2): pp.209-238.
Unerman, J. 2000. Methodological Issues. Reflections on Quantification in Corporate Social Reporting Content Analysis. Accounting, Auditing & Accountability Journal. 13(5): pp.667-680.
Ng, L. W. 1985. Social responsibility disclosures of selected New Zealand companies for 1981, 1982 and 1983. Occasional Paper no. 54 Massey University, Palmerston North.
Skouloudis, A., Evangelinos, K. and Kourmousis, F. 2009. Development of an Evaluation Methodology for Triple Bottom Line Reports Using International Standards on Reporting. Environmental Management. 44(2): pp.298-311.
Lu, Y. and Abeysekera, I. 2014. Social and environmental disclosure by Chinese firms. 1 ed. UK: Routledge.
Podestà, F.2002. Recent developments in quantitative comparative methodology: The case of pooled time series cross-section analysis. Decision Support System, Elsevier. (SOC 3-02): pp.1-44.
Biorn, E. 2013. Introductory econometrics: on models and data types in econometrics. Available from:
Beck, N. and Katz, J. N. 1995. What to do (and not to do) with Time-Series Cross-Section Data. The American Political Science Review. 89(3): pp.634-647.
Beck, N. and Katz, J. N. 2006. Random Coefficient Models for Time-Series–Cross-Section Data: Monte Carlo Experiments. Society for Political Methodology. pp.21 May, 2015-14.
Barako, D. G., Hancock, P. and Izan, H. Y. 2006b. Factors Influencing Voluntary Corporate Disclosures by Kenyan Companies. Corporate Governance: An International Review. 14(2): pp.107-125.
Healey, J. F. 2015. Statistics: A tool for social research. 10th ed. USA: Cengage Learning.
Ha, R. R. and Ha, J. C. 2012. Integrative statistics for the social and behavioral sciences. USA: Thousand Oaks, Sage Publications.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186