Debt to Capital Ratio and Environmental Sustainability Disclosure in Nigerian Firms

Abstract

This study examined the effect of debt to capital ratio on environmental sustainability disclosure of listed oil and gas firms in Nigeria. Data were generated from annual reports and account and publications of the listed oil and gas firms that operated during 2014-2024. Regression analysis was employed to test the data. This result implies that debt to capital ratio is statistically significant with ERD. The R-squared of  0.509081 (50.91%), means that about 50.91% variations in ERD could be attributed to the explanatory variable (DCR) while 49.09% could be attributable to other factors capable of influencing ERD in Nigeria oil and gas firms. The output for hypothesis holds that ERD has a negative relationship with DCR.  Sequel to the negative but significant relationship that exists between debt to capital ratio and environmental remediation disclosure, firms should always use the debt to capital ratio to track a firm's improvement over time as it acquires properties. The debt-to-capital proportion can be used by shareholders to determine if a company seems to have enough income to finance its financial commitments and whether it can expect to be paid rates of return.