Mandatory Social and Environmental Disclosure: A Performance Evaluation of Listed Nigerian Oil and Gas Companies Pre- and Post-Mandatory Disclosure Requirements

摘要

Corporate social and environmental disclosure is still evolving and weak in developing countries and to stimulate the practice, many developing countries are putting in place regulations. Code of Corporate Governance for listed companies in Nigeria issued in 2011 mandated certain disclosure. Therefore, the main aim of this study is to assess volume of disclosure by listed Nigerian oil and gas companies six (6) years pre- and six (6) years post the code. Legitimacy theory is employed to underpin the study while corporate characteristics are tested to determine their influence on volume of the disclosure. Modified word count content analysis of annual reports and accounts of sample companies is used to determine volume of disclosure while two sample t-tests give the statistical mean of the disclosure. Panel Corrected Standard Error Regression analysis is used to determine the influence of corporate characteristics on the volume of the disclosure. Results from words counts content analysis indicated 53% increase in volume of social disclosure and 235% increase in volume of environmental disclosure six years post-code over disclosure six years pre-code. Two sample t-tests show that the mean of disclosure six years post code is greater than the mean of disclosure six years pre- code. Panel regression analysis results show that corporate size, have positive and significant relationship with disclosure. Obtained results is perhaps consistent with legitimacy theory.