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Discretionary environmental disclosures of corporations in Nigeria

Discretionary environmental disclosures of corporations in Nigeria Environmental disclosures in Nigeria are surrounded by controversy involving the pervasive impact of a voluntary regime. The absence of a statutory environmental reporting framework has become responsible for the nuances of what corporations disclose and what they are expected to disclose. Consequently, the study adopts quantitative research approach to generate empirical evidence on the determinants of the extent of environmental disclosure given a voluntary initiative amongst listed companies in Nigeria. The study employs the binary probit regression model for data analysis and a unique approach (for a study in Nigeria) of content analysis to identify the extent of environmental disclosure in the annual reports of selected Nigerian Stock Exchange companies. The findings show that firm characteristics such as firm size, firm performance, the availability of cash and the age of the firm are key determinants of the extent of environmental disclosure. This result can be attributed to the absence of relevant regulatory requirements and weak institutions. The study recommends the creation of a statutory environmental reporting framework that would provide corporate incentives and penalties for environmental responsiveness and irresponsiveness, respectively. In a country where there is evidence of the abuse of voluntary regime as it relates to the disclosure of environmental information, the legislation that makes environmental and social disclosures mandatory has become inevitable as it is the only way to guarantee environmental sustainability. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Disclosure and Governance Springer Journals

Discretionary environmental disclosures of corporations in Nigeria

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References (55)

Publisher
Springer Journals
Copyright
Copyright © 2018 by Springer Nature Limited
Subject
Business and Management; Business and Management, general; Accounting/Auditing; Corporate Finance; Corporate Governance
ISSN
1741-3591
eISSN
1746-6539
DOI
10.1057/s41310-018-0052-0
Publisher site
See Article on Publisher Site

Abstract

Environmental disclosures in Nigeria are surrounded by controversy involving the pervasive impact of a voluntary regime. The absence of a statutory environmental reporting framework has become responsible for the nuances of what corporations disclose and what they are expected to disclose. Consequently, the study adopts quantitative research approach to generate empirical evidence on the determinants of the extent of environmental disclosure given a voluntary initiative amongst listed companies in Nigeria. The study employs the binary probit regression model for data analysis and a unique approach (for a study in Nigeria) of content analysis to identify the extent of environmental disclosure in the annual reports of selected Nigerian Stock Exchange companies. The findings show that firm characteristics such as firm size, firm performance, the availability of cash and the age of the firm are key determinants of the extent of environmental disclosure. This result can be attributed to the absence of relevant regulatory requirements and weak institutions. The study recommends the creation of a statutory environmental reporting framework that would provide corporate incentives and penalties for environmental responsiveness and irresponsiveness, respectively. In a country where there is evidence of the abuse of voluntary regime as it relates to the disclosure of environmental information, the legislation that makes environmental and social disclosures mandatory has become inevitable as it is the only way to guarantee environmental sustainability.

Journal

International Journal of Disclosure and Governance – Springer Journals

Published: Nov 1, 2018

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