Corporate Environmental disclosure and performance in Nigerian listed firms: The legitimacy theory

mike terkuma soomiyol, Mohammad Syahir, Amir Samsudin


The voluntary environmental disclosures by corporate organisations acts as a major tool in disseminating environmental information to fulfil firms’ responsibility towards its numerous stakeholders and in conveying corporate environmental awareness. The level of environmental disclosure in Nigerian firms is however low and its relationship with environmental performance remains inconclusive. This study uses the legitimacy theory to reinvestigate this phenomena. The argument underlying the legitimacy theory is that firms can effectively operate better if they are operating within the framework of the societal norms and values. Companies disclose environmental information voluntarily to legitimise their activities, that is, to obtain the society’s impression of being socially responsible. The sample consist of 176 firms as listed on the Nigerian Stock Exchange (NSE). The data was collected from annual reports of listed firms. The results indicate that environmental performance has no influence on firms to disclose environmental issues. The findings of this study will facilitate the review of CSR reporting framework so as to provide a clearer guidance to firms to prepare objective nonbiased voluntary environmental information.


Corporate Environmental disclosure, performance in Nigerian listed firms, legitimacy theory

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