Hazardous waste management and investors perception of firm value

Abstract

This study examines the impact of hazardous waste management on firm value of oil & gas companies in Nigeria. Secondary data used for this study were collected from the Nigerian Stock Exchange for the period 2010 – 2019. Data collected for the study were analyzed using descriptive statistics and multiple regression analysis. The result of the regression analysis indicates negative association between hazardous waste management and firm value of sampled firms. The result concludes that there is a financial reward in engaging in disclosure practices in the long – run. The result also shows that shareholders value firm high if they disclose related environmental issues. Based on the findings, the study recommends that oil and gas companies should adopt and practice environmental policies to show their commitment to the achievement of environmental sustainability. The disclosure of environmental issues affects how market participants (investors) evaluate the firm’s ability to generate profit in future.