Environmental Accounting Disclosure and Financial Performance of Listed Multinational Firms in Nigeria

1
Olusola Esther Igbekoyi
Olusola Esther Igbekoyi
2
Festus Taiwo Solanke
Festus Taiwo Solanke
3
Sunday Amos ADEUSI
Sunday Amos ADEUSI
4
Muyiwa Ezekiel Alade
Muyiwa Ezekiel Alade
5
Wale Henry Agbaje
Wale Henry Agbaje

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GJMBR Volume 21 Issue D2

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The study investigated environmental accounting disclosure and financial performance of listed multinational companies in Nigeria. This study was conducted by firstly assessing the level of compliance, and then exploring the effect of environmental disclosure on financial performance with a focus on multinational companies in the face of continued environmental abuse witnessed in the Nigerian business space owing to the non-availability of sustainability reporting legal framework. The study used secondary data obtained from the published annual reports of the companies from 2011 to 2020. Data collected (Environmental disclosure index, return on asset, earnings per share), were analyzed using descriptive statistics and panel regression analysis. It was discovered that in assessing level of compliance, out of the three sectors assessed, oil and gas was the least compliant. Also, results showed that environmental accounting disclosure had a significant and positive effect on earnings per share (EAPS) but a negative and insignificant effect on return on asset (RETA). The study, therefore, concluded that the extent of responsiveness of companies to environmental accounting disclosure influences how the company is valued. The study, therefore, recommended that multinational companies and other Nigerian firms, should make effort to disclose their environmental-related activities even though it is not required by law, as it has shown evidence of its influence on earnings on shares of companies.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Olusola Esther Igbekoyi. 2022. \u201cEnvironmental Accounting Disclosure and Financial Performance of Listed Multinational Firms in Nigeria\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 21 (GJMBR Volume 21 Issue D2): .

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Environmental Accounting Disclosure and Financial Performance of Listed Multinational Firms in Niger.
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GJMBR Volume 21 Issue D2
Pg. 17- 28
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-D Classification: JEL Code: M49
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v1.2

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January 10, 2022

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English

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The study investigated environmental accounting disclosure and financial performance of listed multinational companies in Nigeria. This study was conducted by firstly assessing the level of compliance, and then exploring the effect of environmental disclosure on financial performance with a focus on multinational companies in the face of continued environmental abuse witnessed in the Nigerian business space owing to the non-availability of sustainability reporting legal framework. The study used secondary data obtained from the published annual reports of the companies from 2011 to 2020. Data collected (Environmental disclosure index, return on asset, earnings per share), were analyzed using descriptive statistics and panel regression analysis. It was discovered that in assessing level of compliance, out of the three sectors assessed, oil and gas was the least compliant. Also, results showed that environmental accounting disclosure had a significant and positive effect on earnings per share (EAPS) but a negative and insignificant effect on return on asset (RETA). The study, therefore, concluded that the extent of responsiveness of companies to environmental accounting disclosure influences how the company is valued. The study, therefore, recommended that multinational companies and other Nigerian firms, should make effort to disclose their environmental-related activities even though it is not required by law, as it has shown evidence of its influence on earnings on shares of companies.

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Environmental Accounting Disclosure and Financial Performance of Listed Multinational Firms in Nigeria

Olusola Esther Igbekoyi
Olusola Esther Igbekoyi
Festus Taiwo Solanke
Festus Taiwo Solanke
Sunday Amos ADEUSI
Sunday Amos ADEUSI
Muyiwa Ezekiel Alade
Muyiwa Ezekiel Alade
Wale Henry Agbaje
Wale Henry Agbaje

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