Corporate Environmental Disclosure and Financial Indicators of Indian Oil Sector: an Empirical Analysis

Abstract

Introduction  

Environmental disclosure is the process to disseminate the environmental related information in the company’s statutory report. In India the amount of disclosure has significantly increased over the years.

Objectives

The present paper examines the relationship of financial performance indicators i.e. return on assets (ROA), return on equity (ROE) and earning per share (EPS) with environmental disclosure (ED). The data are collected over the period of 5 years from 2019-20 to 2023-24 by using the annual report of top 5 Indian oil sector companies listed by Bombay Stock Exchange as per their market capitalization as on 1.10.2024.

Methods

This study analysis the ED factors by using content analysis. To justify the objectives statistical tools like descriptive statistics, correlation analysis, analysis of variance and regression model are applied in this study.

Results

This study reveals that financial performance i.e. ROA and EPS have significantly impacted by environmental disclosure factors of sample companies whereas ROE is not significantly influenced by environmental disclosure factors.

Conclusion

In India environmental disclosure Practices are found in infant stage. There is no such mandatory provision for all the corporate sectors to maintain a single framework for environmental disclosure. Oil sector companies are required to build the corporate images by strengthening their environmental factors which enhance the corporate performance.