TRIPLE BOTTOM LINE REPORTING AND SHAREHOLDERS’ VALUE: THE OIL AND GAS PERSPECTIVE


Dr. Sunday A. Effiong (ACA)
Department of Accounting, Faculty of Management Sciences
University of Calabar, Calabar
Email: drsunnyeffi@yahoo.com . Phone No: 08037115127
&
Dorathy C. Akpan (ACA)
Department of Accounting, Faculty of Management Sciences
Akwa Ibom State University
Email: dotdede2001@yahoo.com , Phone No: 08036056169

ABSTRACT

This paper is specifically directed at evaluating the effects of economic, environmental and social
performance disclosures on economic value added (EVA), market value added (MVA) and cash flow
returns on investment (CFROI) of oil and gas companies in Nigeria. This study was instigated by the
noticeable gap where companies mostly focus on single bottom line reporting that only shows
profitability; which does not reflect the holistic measurement of the firm’s value. Data used in this
study were mainly secondary from the Nigerian Stock Exchange Fact Book and Annual Reports of
Oil and Gas companies quoted in the Exchange. A disclosure checklist, based on Global Reporting
Index (GRI) guidelines was developed and used while the research design adopted was ex post facto.
Twelve oil and gas companies were studied for ten years (2007 - 2016). Descriptive statistics and
panel data regression analysis were used in the study, anchored on three investigative hypotheses and
were tested using random/fixed effects regression analysis with necessary findings made. The
findings show that economic, social and environmental performance disclosures significantly affect
economic value, market value and cash flow returns on investment and consequently the
shareholder’s value of the studied companies. These results confirm that corporate strategies of
reporting the organization’s footprints on the basis of environment impacts, social systems and
economic conditions of stakeholders significantly maximize shareholders’ value. It is recommended
that oil and gas regulating agencies should make the adoption of triple bottom line framework
compulsory, given the fact that triple bottom line reporting significantly impacts oil and gas
stakeholders and deeply determines shareholders’ value. It is further recommended that Securities
and Exchange Commission (SEC) should include triple bottom line reporting as one of the listing
requirements especially when it concerns environmentally exposed companies.
Keywords: triple bottom line, performance disclosures, shareholders value, economic value, market
value

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