CARBON ACCOUNTING PRACTICES AND FIRM VALUE

This study examines the effect of carbon accounting practices on firm value in the Nigerian oil and gas sector, with sustainability introduced as a moderating variable. Carbon accounting practices were operationalized into carbon measurement techniques, carbon disclosure practices, and regulatory compliance mechanisms, while firm value was proxied by Tobin’s Q. The study adopted an ex post facto research design using panel data from 15 listed oil and gas firms over the period 2016–2025. Data were obtained from annual reports, sustainability reports, and Nigerian Exchange Group publications. Panel regression analysis was employed alongside correlation and descriptive statistics to test the hypotheses. Findings reveal that all dimensions of carbon accounting practices have a significant positive effect on firm value. Carbon disclosure practices exert the strongest influence, followed by carbon measurement techniques and regulatory compliance mechanisms. The results further show that sustainability significantly moderates the relationship between carbon accounting practices and firm value, strengthening their impact. The study concludes that carbon accounting is not merely a compliance requirement but a strategic financial tool that enhances firm value through improved transparency, reduced information asymmetry, and increased investor confidence. The study recommends improved carbon measurement systems, enhanced disclosure quality, and stronger regulatory compliance to maximize firm value in emerging economies.