EFFECT OF CORPORATE GOVERNANCE MECHANISMS ON ENVIRONMENTAL DISCLOSURE OF LISTED OIL AND GAS FIRMS IN NIGERIA

Abstract

This study assessed the effect of corporate governance mechanisms on environmental Reporting of listed oil and gas firms in Nigeria from 2011 to 2020. The study used Board Size (BS), Board Independence (BI) and Board Ownership (BO) as measures of corporate governance and environmental disclosure index as a measure of environmental disclosure. Firm age was used as a control variable. Descriptive research approach was employed in this study. Data were collected from audited financial statements of the eight sampled oil and gas firms via content analysis. Panel data regression techniques were carried out and the result shows that, board independence, board ownership have a significant effect on environmental disclosure of the sampled firms while board size does not significantly affect environmental reporting of the sampled firms. Based on the findings, the study concludes that corporate governance mechanisms as a set of policies and guidelines can be used by an organization to manage and control the operations of a firm so as to reduce inefficiencies as well determine to a large extent the type of information a firm discloses for public consumption. Arising from the findings, the study recommends that, companies should pay closer attention to corporate governance mechanisms (board independence and ownership) so as to enhance more disclosure about environmental issues.