EFFECT OF SUSTAINABILITY REPORTING ON CORPORATE FINANCIAL PERFORMANCE OF OIL AND GAS COMPANIES IN NIGERIA
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The aim of this study was to determine the effect of sustainability reporting on corporate financial performance of oil and gas companies listed on the Nigerian Exchange Group (NGX). Six (6) of these companies were selected using stratified random sampling technique. The proxies for sustainability reporting include; Environmental Information Disclosure, Social Information Disclosure and Economic Information Disclosure, while the profit for the year was employed as financial performance measure. Data were analyzed using Pairwise Pearson Rank Correlation Coefficient and Panel Least Square (PLS) Regression. Analysis of variance was used to test the hypotheses of the study. It was revealed that environmental information disclosure has insignificant and negative effect on profit for the year, Social information disclosure showcased also an insignificant albeit positive effect on profit for the year. Fortunately, economic information disclosure has very significant and positive impact on profit for the year of the sampled oil and gas companies in Nigeria. Conclusively, sustainability reporting is a key factor for sustainable development. The study, therefore, recommends that the level of environmental information disclosure should reduce fines and penalties, which otherwise could impact negatively on profit; Social information disclosure albeit negative, should be improved upon to achieve community and public confidence, and management of companies should adopt policies or strategies very meaningful to achieving sustainable development.