Article abstract

Journal of Economics and International Business Management

Research Article | Published September 2021 | Volume 9, Issue 2, pp. 71-81.

doi: https://doi.org/10.33495/jeibm_v9i2.21.126

 

Environmental accounting disclosure and financial performance of manufacturing firms in Nigeria

 


 

 

Uniamikogbo Emmanuel1*

Ali Peter Ifeanyichukwu2

 

Email Author

 

1. Department of Accounting, Rhema University, Aba, Abia State, Nigeria.


2. Department of Accountancy, Imo State Polytechnic, Umuagwo, Imo State, Nigeria.



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Citation: Emmanuel U, Ifeanyichukwu AP (2021). Environmental accounting disclosure and financial performance of manufacturing firms in Nigeria. J. Econ. Int. Bus. Manage. 9(2): 71-81. doi: 10.33495/jeibm_v9i2.21.126.

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 Abstract 


The most challenging environmental problem the world is facing today is global warming and climate change which stem from business operations. This problem if not immediately checked may affect the ecosystem and portend danger for the future generation. Thus, it is exigent for firms’ to protect the environment and society through proper disclosure of environmental accounting information for sustainable growth and development. However, whether full disclosure of environmental accounting information in the annual reports of firms can help address environmental challenges faced by host communities and society has remained contentious. This study, therefore, examined corporate environmental accounting disclosure and financial performance of selected manufacturing firms in Nigeria. Precisely, the study examined the effect of environmental accounting disclosures on Share Price, Return on Asset and Return of equity of selected manufacturing firms in Nigeria. The ex-post-facto research design was engaged in this study, using a sample of 40 manufacturing firms. The secondary source of data collection method was employed using the convenience sampling technique. Data were harvested from the content analysis disclosure index and corporate annual reports of the sampled manufacturing firms listed on the Nigerian Stock Exchange for the period 2010-2019 financial years. The descriptive statistics, correlation matrix and regression analysis were the statistical tools used in the study. Data were analysed with the aid of the panel data regression technique. Our findings revealed that environmental accounting disclosures had a significant effect each on Share Price, Return on Asset and Return on equity of manufacturing firms in Nigeria. The study recommends that companies should increase the extent to which they disclose the environmental impacts of their firms’ activity in the annual report for stakeholders’ assessment of their performance. Similarly, government effective supervision is important in ensuring the implementation of environmental disclosure that aligns with applicable regulations. Lastly, the regulatory authority should set up a verification unit to ensure external verification of environmental disclosure claims as well as ascertaining the reliability and authenticity of environmental disclosures representation in the accounting record for the credibility of environmental disclosures.

Keywords  Environmental accounting disclosures   return on asset   return on equity   share price  

 

 

Copyright © 2021 Author(s) retain the copyright of this article.

This article is published under the terms of the Creative Commons Attribution License 4.0

 

 

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