MODERATING EFFECT OF FIRM ENVIRONMENTAL SENSITIVITY ON THE RELATIONSHIP BETWEEN SUSTAINABILITY REPORTING DIMENSIONS AND FINANCIAL PERFORMANCE OF AN EMERGING MARKET ECONOMY

This study examines the moderating role of firm environmental sensitivity on the relationship between sustainability reporting dimensions, environmental, social, and governance disclosures, and the financial performance of nine listed oil and gas firms in Nigeria from 2019 to 2023. Employing panel...

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Main Author: Adedeji Daniel GBADEBO
Format: Article
Language:English
Published: Department of Accounting and Finance, Federal University Gusau 2024-09-01
Series:Gusau Journal of Accounting and Finance
Subjects:
Online Access:https://journals.gujaf.com.ng/index.php/gujaf/article/view/428
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author Adedeji Daniel GBADEBO
author_facet Adedeji Daniel GBADEBO
author_sort Adedeji Daniel GBADEBO
collection DOAJ
description This study examines the moderating role of firm environmental sensitivity on the relationship between sustainability reporting dimensions, environmental, social, and governance disclosures, and the financial performance of nine listed oil and gas firms in Nigeria from 2019 to 2023. Employing panel data analysis and interaction models, the results reveal that environmental and social reporting have a positive influence on financial performance, while governance reporting shows an insignificant effect. Firm environmental sensitivity significantly moderates the impact of environmental reporting on financial outcomes, underscoring the importance of contextual industry factors in enhancing the value of sustainability disclosures. The findings contribute to the literature by integrating firm-specific environmental sensitivity into the analysis of sustainability reporting effectiveness, providing valuable insights for regulators, investors, and corporate managers aiming to optimize sustainability practices within environmentally sensitive sectors.
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institution Kabale University
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2756-6897
language English
publishDate 2024-09-01
publisher Department of Accounting and Finance, Federal University Gusau
record_format Article
series Gusau Journal of Accounting and Finance
spelling doaj-art-ee2f9e6931284d57aa42f0094c066ef12025-08-20T04:02:50ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2756-68972024-09-0151MODERATING EFFECT OF FIRM ENVIRONMENTAL SENSITIVITY ON THE RELATIONSHIP BETWEEN SUSTAINABILITY REPORTING DIMENSIONS AND FINANCIAL PERFORMANCE OF AN EMERGING MARKET ECONOMY Adedeji Daniel GBADEBO0Department of Accounting Science, Walter Sisulu University, Mthatha, South Africa This study examines the moderating role of firm environmental sensitivity on the relationship between sustainability reporting dimensions, environmental, social, and governance disclosures, and the financial performance of nine listed oil and gas firms in Nigeria from 2019 to 2023. Employing panel data analysis and interaction models, the results reveal that environmental and social reporting have a positive influence on financial performance, while governance reporting shows an insignificant effect. Firm environmental sensitivity significantly moderates the impact of environmental reporting on financial outcomes, underscoring the importance of contextual industry factors in enhancing the value of sustainability disclosures. The findings contribute to the literature by integrating firm-specific environmental sensitivity into the analysis of sustainability reporting effectiveness, providing valuable insights for regulators, investors, and corporate managers aiming to optimize sustainability practices within environmentally sensitive sectors. https://journals.gujaf.com.ng/index.php/gujaf/article/view/428Sustainability ReportingFinancial PerformanceEnvironmental SensitivityOil and Gas FirmsPanel DataNigeria
spellingShingle Adedeji Daniel GBADEBO
MODERATING EFFECT OF FIRM ENVIRONMENTAL SENSITIVITY ON THE RELATIONSHIP BETWEEN SUSTAINABILITY REPORTING DIMENSIONS AND FINANCIAL PERFORMANCE OF AN EMERGING MARKET ECONOMY
Gusau Journal of Accounting and Finance
Sustainability Reporting
Financial Performance
Environmental Sensitivity
Oil and Gas Firms
Panel Data
Nigeria
title MODERATING EFFECT OF FIRM ENVIRONMENTAL SENSITIVITY ON THE RELATIONSHIP BETWEEN SUSTAINABILITY REPORTING DIMENSIONS AND FINANCIAL PERFORMANCE OF AN EMERGING MARKET ECONOMY
title_full MODERATING EFFECT OF FIRM ENVIRONMENTAL SENSITIVITY ON THE RELATIONSHIP BETWEEN SUSTAINABILITY REPORTING DIMENSIONS AND FINANCIAL PERFORMANCE OF AN EMERGING MARKET ECONOMY
title_fullStr MODERATING EFFECT OF FIRM ENVIRONMENTAL SENSITIVITY ON THE RELATIONSHIP BETWEEN SUSTAINABILITY REPORTING DIMENSIONS AND FINANCIAL PERFORMANCE OF AN EMERGING MARKET ECONOMY
title_full_unstemmed MODERATING EFFECT OF FIRM ENVIRONMENTAL SENSITIVITY ON THE RELATIONSHIP BETWEEN SUSTAINABILITY REPORTING DIMENSIONS AND FINANCIAL PERFORMANCE OF AN EMERGING MARKET ECONOMY
title_short MODERATING EFFECT OF FIRM ENVIRONMENTAL SENSITIVITY ON THE RELATIONSHIP BETWEEN SUSTAINABILITY REPORTING DIMENSIONS AND FINANCIAL PERFORMANCE OF AN EMERGING MARKET ECONOMY
title_sort moderating effect of firm environmental sensitivity on the relationship between sustainability reporting dimensions and financial performance of an emerging market economy
topic Sustainability Reporting
Financial Performance
Environmental Sensitivity
Oil and Gas Firms
Panel Data
Nigeria
url https://journals.gujaf.com.ng/index.php/gujaf/article/view/428
work_keys_str_mv AT adedejidanielgbadebo moderatingeffectoffirmenvironmentalsensitivityontherelationshipbetweensustainabilityreportingdimensionsandfinancialperformanceofanemergingmarketeconomy