EFFECT OF ENVIRONMENTAL AUDITS ON FINANCIAL PERFORMANCE OF OIL AND GAS FIRMS IN NIGERIA

Abstract

The study examined environmental audit and oil and gas financial performance of oil and gas firms in Nigeria; data were collected from secondary source which covered 2013-2024 and analysed using descriptive, panel regression and inferential statistics. The results displayed profit after tax and environmental audit (EA) were insignificant coefficient (-0.2415) and p-value (0.0410) Also, environmental audit and return on Asset were positive having coefficient (0.2635) and p-value (0.0253). It is also shown that environmental audit and dividend per share displayed a significant with coefficient value (0.5212) and p-value (0.000). Also, environmental audit (EA) and earnings per share showed co-efficient value (0.5397) and p-value (0.000). The study concluded that environmental audits displayed a significant impact on asset as well as dividend and retained earnings that investors could anticipate for each share. The study recommended that government should provide enable environment for firm sustainability, more rules and regulations should be provided in ensuring periodic environmental audit by various firms operating in Nigeria, and management should implement an effective environmental management system to avoid additional environmental costs resulting from environmental damage in order to stop decline in profit after tax.