Effects Of Profitability And Firm Size On Environmental Disclosure Of Listed Environmentally Sensitive Firms In Nigeria

The study examined the effect of profitability and firm size on environmental reporting among listed environmentally sensitive firms in Nigeria. The study used 24 environmentally sensitive companies (12 industrial commodity companies, 2 natural resource companies, and 10 oil and gas companies) over the five-year period 2015-2019. Secondary data were collected from the accounts of 24 model companies that use material analysis to collect annual reports and the Environmental Report Index, profitability variables used and leveraged the Return on Assets (ROA) dependent variable and solid size. The control variable was. The random effect regression technique was used to analyze the data. The results show that profitability has a positive significant impact on environmental reporting, which means that environmentally sensitive companies are rewarded by stakeholders for environmental responsibility, thereby increasing their ability to respond to environmental reporting. It turned out that payroll size has a negative and negligible effect on environmental reporting. Meanwhile, the benefits of using it as a control variable had a positive but negligible effect on the environmental report. The study recommends that company managers must aggressively promote profitability to maintain environmental sustainability.