Influence Of Green Accounting And Financial Sustainability On Nigerian Oil And Gas Firms
Mukail Oyesegun Oyekanmi, Ayoola Azeez Olaoye
Keywords: Corporate governance, financial sustainability, green accounting, oil and gas firms
Abstract
This study examines the influence of green accounting on financial sustainability of Nigerian oil and gas firms, with corporate governance standing as a moderating role. The study relied on secondary data from the annual reports of seven purposively selected oil and gas firms listed on the Nigerian Exchange Group plc between 2015 and 2024. The collated data were analyzed using correlation analysis, descriptive analysis, random forest machine learning model and random effect regression alongside with some diagnostic tests. Findings discover a positive significant influence of green accounting; a positive significant influence of corporate governance; a positive significant influence of profitability; and a strongest positive significant joint influence of corporate governance and green accounting on financial sustainability, indicating that governance quality is a strong condition which amplifies the financial gains of green accounting practices. This study concludes that green accounting contributes positively to financial sustainability of Nigerian oil and gas firms. This study informs the oil and gas stakeholders that earnings is matter because a financially profitable firm is better positioned to maintain sustainability, but other environmental and governance factors also play more significant roles in improving firms’ sustainability. The study recommends that Nigerian and other emerging markets governments should design fiscal incentive packages like tax deductions to reward any firm that meet pre-defined governance quality and environmental expenditure thresholds to encourage firms pursue green accounting practice and transform to more sustainable operations.
Author Biography
Mukail Oyesegun Oyekanmi
Bursary Department, University of Ilesa, Ilesa, Osun State, Nigeria
Email: [email protected]
ORCID: https://orcid.org/0009-0009-9225-6882
Ayoola Azeez Olaoye
Department of Accounting, University of Ilesa, Ilesa, Osun State, Nigeria
Email: [email protected]
ORCID: https://orcid.org/0000-0002-2360-3213