Differential reporting of social and environmental disclosures between local and foreign oil companies in Nigeria

Odera, Odhiambo and Scott, Albert and Gow, Jeff (2016) Differential reporting of social and environmental disclosures between local and foreign oil companies in Nigeria. Social Responsibility Journal, 12 (3). pp. 415-438. ISSN 1747-1117


Purpose – This study aims to identify the differences between local and foreign companies’ social and environmental disclosures (SEDs) practices operating in the Nigerian oil sector. It aims at distinguishing SED levels by comparing local and foreign companies operating in the oil sector.

Design/methodology/approach – The paper analyses annual reports through content analysis. SED extent and type are measured by the number of sentences. SEDs are further classified into three subcategories according to whether they are negative, neutral or positive disclosures and then their proportions are compared through descriptive analysis. To better understand SED differences, the Kruskal–Wallis and Mann–Whitney–Wilcoxon tests are used.

Findings – Local companies are found to provide more content and a wider variety of SED than foreign companies. The majority of the total SEDs in both local and foreign companies are positive with very little evidence of negative news.

Research limitations/implications – The measurement of SEDs focuses on only annual reports, without consideration of other disclosure media such as standalone reports and corporate websites. SEDs are assumed to be voluntary for the companies and they may choose not to disclose any information in annual reports, as there are no regulations or disclosure guidelines in Nigeria to be followed.

Originality/value – The main contribution of this study lies in identifying the factors that have led to diversity and uniqueness in SED between local and foreign oil companies. As such, this study seeks to contribute to the development of understanding multiple factors that could give rise to changing patterns of SED.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 14 Sep 2016 01:12
Last Modified: 08 Jun 2017 06:34
Uncontrolled Keywords: Nigeria, oil companies, social and environmental disclosures, dialectical materialism theory, differential reporting
Fields of Research : 15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150303 Corporate Governance and Stakeholder Engagement
16 Studies in Human Society > 1605 Policy and Administration > 160599 Policy and Administration not elsewhere classified
Socio-Economic Objective: D Environment > 96 Environment > 9699 Other Environment > 969999 Environment not elsewhere classified
Identification Number or DOI: 10.1108/SRJ-05-2015-0070
URI: http://eprints.usq.edu.au/id/eprint/29708

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