SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF NIGERIAN AND MOZAMBICAN OIL AND GAS COMPANIES

Abstract

The thrust of this study is to determine the influence of sustainability reporting on the financial performance of firms from Nigeria and Mozambique and it is triggered by recent increase in sustainability reporting by firms in these countries. Secondary data extracted from published accounts of sampled firms were subjected to multiple regression analysis. Results from the study indicate that economic reporting and environmental reporting affect positively and significantly financial performance of Oil and Gas firms in Nigeria and Mozambique while social reporting had an insignificant negative effect on the performance of Oil and Gas firms in Nigeria and Mozambique. Additionally, the study found that sustainability reporting amongst Nigerian and Mozambican oil and gas companies differ significantly. The study concludes that economic and environmental reporting have a significant positive influence on the financial performance of firms while social reporting has a negative but insignificant influence on the financial performance of Oil and Gas companies in the two countries. The study recommends an international reporting standard to guide companies globally in reporting sustainability activities to enhance meaningful comparison among reporting companies within the same jurisdiction and even internationally.

Keywords

• sustainability reporting
• Economic Reporting
• Environmental Reporting
• Social Reporting
• Nigeria