CONTRAST ANALYSIS OF CORPORATE GOVERNANCE MECHANISM AND ENVIRONMENTAL DISCLOSURES IN OIL AND GAS SECTORS IN NIGERIA AND GHANA

Abstract

The environment has generated a great deal of concern globally since the last two decades and consequently, environmental concerns have attracted considerable attention arising from the need to ensure environmental sustainability. The main objective of the study is a contrast analysis of the impact of corporate governance mechanisms on environmental disclosures in the oil and gas sectors of Nigeria and Ghana. The researcher adopted the ex post facto design. The study population was the listed oil and gas companies in Nigeria and Ghana. The researcher adopted the convenient sampling technique. The data required for the study was secondary data. The data were extracted from the financial statements of the selected companies through content analysis. Descriptive Statistics technique and multiple linear regression analysis were the techniques adopted for the analysis. The data analysis was enhanced using Statistical Package for Social Science version 20. A T-test was carried out to examine the difference between disclosures between the two countries of the study. The result of the analysis shows that Board Size has a significant influence on the environmental disclosure of oil and gas companies in Ghana but an insignificant influence in Nigeria. The board meeting has a significant influence on the environmental disclosure of oil and gas companies in Ghana but has a negative effect on environmental disclosure in Nigeria. Board Composition has an insignificant influence on environmental disclosures of oil and gas companies in Nigeria but in Ghana, board composition influenced environmental disclosures significantly. Audit committee size has a significant influence on the environmental disclosures of oil and gas companies in Nigeria and Ghana. However, there is a significant composite influence of corporate governance on environmental disclosures both in Nigeria and Ghana. According to the study's results, Nigerian oil firms do not significantly include environmental information in their financial reports. It can be concluded that oil and gas companies in Ghana disclose their environmental information more than their Nigerian counterpart. Based on the findings of the study, the following recommendations were made; the number of directors in the oil and gas sector in Nigeria should increase to a minimum of ten directors to allow the presence of diverse skills and experience on the board.