Firm Size and Environmental Disclosure of Quoted Firms in Nigeria

Abstract

The aim of this study is focused on assessing the impact of firm size on environmental disclosure of quoted firms in Nigeria, for the year 2012-2016. The study was undertaken on all companies listed in the Nigeria Stock Exchange (NSE). The study adopted the cross-sectional research design. The study focused on a sample of 82 firms from the total population of 176 firms listed on the Nigeria Stock Exchange for a period of 5 years ranging from 2012 to 2016. The study method of data collection was secondary data in nature, which involved retrieving data from the annual financial statement of the sampled firm in Nigeria. The study employed the usage of Binary Regression techniques as the method of data analysis. From the results of the Binary Logistic Regression, it reveals that the size of quoted firms in Nigeria has a negative coefficient of -0.059173 and a p-value of 0.0574, which shows that a negative relationship exists between ENVD and SIZE even though the relation was significant at 5%. From the results therein, it provides a basis for the rejection of the null hypothesis which assumed that there is no relationship between the size of quoted firms and environmental disclosure. The implication of this is that the disclosure of environmental information is strongly based on the size of firms. It therefore means that the larger a firm is, the more the likelihood of disclosing environmental information in Nigeria. This reveals that smaller firm are unlikely to disclose such environmental information. The study recommends that government should compel companies aspiring to be listed on the Nigeria Stock Exchange to provide environmental risks disclosures as one of the pre-requisites for listing and should be enforced to continually provide such environmental disclosures while presenting their annual reports and accounts.