Effect of Intellectual Capital on Sustainability Disclosure: Evidence from Listed Oil and Gas Firms in Nigeria

Abstract

The aim of this study was to investigate the impact of intellectual capital on the sustainability disclosure of oil and gas firms listed in Nigeria. Specifically, the study aimed to determine the effect of Human Capital Efficiency, Structural Capital Efficiency, and Capital Employed Efficiency on Environmental Sustainability Disclosure, Economic Sustainability Disclosure, and Social Sustainability Disclosure. The study utilized an ex-post facto research design and the population of interest consisted of the 11 Oil and Gas firms listed on the Nigerian Exchange (NGX) Group. The sample size for the study was determined using complete enumeration technique, and it comprised of the 11 listed oil and gas firms in Nigeria. Secondary data was sourced from the annual reports of the selected firms covering a period of 14 years from 2008 to 2021. The Pooled Ordinary Least Square (POLS) regression analysis conducted revealed that Human Capital Efficiency, Structural Capital Efficiency, and Capital Employed Efficiency do not have a significant impact on the sustainability disclosure of oil and gas firms listed in Nigeria. The study recommends that companies should prioritize developing and implementing comprehensive sustainability strategies that take into account environmental concerns and ensure adequate disclosure of their impact on the environment. This can involve setting specific targets and goals related to environmental performance, investing in renewable energy and cleaner technologies, and regularly monitoring and reporting on progress.