Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Short Term Debt Ratio and Environmental Disclosure: A Study of Oil and Gas Firms in Nigeria

Ikilidih, Joy N. and Chukwunwike C. Mesigo

Abstract

The study investigates the effect of short-term debt ratio on environmental disclosure of listed oil and gas firms in Nigeria. Ex-post facto research design was employed in this study The population of the study consisted of all the nine (9) Oil and Gas firms listed on the Nigerian Exchange Group as at 31st December, 2024. The data were obtained from annual reports and account from 2014-2024 of the sample Oil and Gas firms. Descriptive statistics was utilized to describe the mean, median, standard deviation, kurtosis, skewness, maximum and minimum values and Panel Least Square regression analysis was employed to test the hypothesis via E-Views 10 statistical software. The study upholds that short-term debt ratio has significant and positive effect on environmental disclosure of listed oil and gas firms in Nigeria. In line with the conclusion of this study, recommended that in order to sustain the positive relationship between short-term debt and environmental sustainability disclosure, this study suggests that firms should continue with the usage of short-term debt in financing operations so as to improve and sustain their financial performance. Key words: Short-term debt, Environmental sustainability and Oil & Gas firms.

Keywords

Short-term debtEnvironmental sustainability and Oil & Gas firms.

References

Ahern, D. (2020). Short-term debt: Evaluating financial strength and cash-generating growth. https://einvestingforbeginners.com/short-term-debt-daah/. 02/04/2023. Arowoshegbe, A., & Emeni, F.K. (2014). Shareholders’ wealth and debt- equity mix of quoted companies in Nigeria. International Journal of Financial Research, 5(1), 107-113. Bassey, B.E., Effiok, S.O. & Etun, E.O. (2013). The impact of environmental accounting and reporting on organizational performance of selected oil and gas companies in Niger-Delta region of Nigeria. Research Journal of Finance and Accounting, 4(3), 2222-2847. Blankespoor, E., De-Haan, E., & Marinovic, I. (2020). Disclosure processing costs, investors’ information choice, and equity market outcomes: A review. J. Account. Econ., 70(18), 101344. Cheng, Z.H., Wang, F., Keung, C., & Bai, Y.X. (2017). Will corporate political connection influence the environmental information disclosure level? Based on the panel data of A- shares from listed companies in shanghai stock market. J. Bus. Ethics, 143(19), 209–221. Fernando, J. (2022). Debt-to-equity ratio. https://www.investopedia.com/terms/d/debtequityratio.asp. Retrieved 18/03/2023. Fernando, J. (2023). Debt-to-quity (D/E) Ratio. https://www.investopedia.com/terms/d/debtequityratio.asp. Accessed 16/6/2023. Houqe, M.N., Opare, S., Zahir-ul-Hassan, M.K., &Ahmed, K. (2022). The effects of carbon emissions and agency costs on firm performance. J. Risk Financial Manag., 15(4), 152. Mansa, J. (2023). Debt-to-quity (D/E) Ratio. https://www.investopedia.com/terms/d/debtequityratio.asp. Accessed 16/6/2023. Naciti, V., & Giovanna, C. (2022). Effectiveness of business practices related to climate change as a driver for improving environmental performance. American Journal of Applied Sciences, 19, 21-33. Onyema, N.E. (2022). The impact of debt financing on profitability of non–financial firms in Nigeria. International Journal of Accounting Research, 7(1), 25-38. Rathburn, P. (2022). Debt-to-equity ratio. https://www.investopedia.com/terms/d/debtequityratio.asp. Retrieved 18/03/2023. Uwalomwa, U., Obarakpo, T., Uwuigbe, O.R., Ozordi, E., Asiriuwa, O., Gbenedio, A.E., & Oluwagbemi, S.T. (2018). Sustainability reporting and firm performance: A bi- directional approach. Academy of Strategic Management Journal, 17(3), 1-16. Zarefar, A., Agustia, D., & Soewarno, N. (2022). Bridging the gap between sustainability disclosure and firm performance in indonesian firms: The moderating effect of the family firm. Sustainability, 14(19), 12022.