Abstract:

This study investigates the value relevance and determinants of Environmental, Social and Governance (ESG) reporting among listed oil and gas firms in Nigeria from 2013 to 2022. The research addresses the underexplored effect of ESG reporting on share price performance within the unique context of the Nigerian oil and gas sector, a key industry with distinctive regulatory and market dynamics. Ex post facto research design was employed, using data from seven listed oil and gas firms in Nigeria. The study utilized a panel data approach, applying the Generalized Method of Moments (GMM) to control for endogeneity and measurement error issues. ESG reporting variables (environmental, social, and governance disclosures) were analyzed alongside control variables such as firm size, return on assets, market capitalization, and debt-to-asset ratio to determine their influence on share price performance. The findings reveal that environmental (p<0.01) and social disclosures (p<0.05) positively impact share price performance, whereas governance disclosures were not statistically significant. These results suggest that investors in Nigeria's oil and gas sector value transparency in environmental and social practices but may not perceive governance disclosures as equally impactful.