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

Odhiambo Odera (Masinde Muliro University of Science and Technology, Kakamega, Kenya)
Albert Scott (School of Commerce, University of Southern Queensland, Toowoomba, Australia)
Jeff Gow (School of Commerce, University of Southern Queensland, Toowoomba, Australia and the Department of Agriculture Economics, Stellenbosch University, Stellenbosch, South Africa)

Social Responsibility Journal

ISSN: 1747-1117

Article publication date: 1 August 2016

603

Abstract

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.

Keywords

Citation

Odera, O., Scott, A. and Gow, J. (2016), "Differential reporting of social and environmental disclosures between local and foreign oil companies in Nigeria", Social Responsibility Journal, Vol. 12 No. 3, pp. 415-438. https://doi.org/10.1108/SRJ-05-2015-0070

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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