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

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

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

Olusola Esther Igbekoyi *

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Festus Taiwo Solanke

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Sunday Amos ADEUSI

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Muyiwa Ezekiel Alade

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Wale Henry Agbaje

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

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Abstract

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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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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How to Cite This Article

Olusola Esther Igbekoyi, Festus Taiwo Solanke, Sunday Amos ADEUSI, Muyiwa Ezekiel Alade, Wale Henry Agbaje. 2022. "Environmental Accounting Disclosure and Financial Performance of Listed Multinational Firms in Nigeria". Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 21 (GJMBR Volume 21 Issue D2).

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GJMBR Volume 21 Issue D2

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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Classification

GJMBR-D Classification JEL Code: M49

Submission ReceivedApril 14, 2021
Peer Review Double Blind
Handling Editor
Accepted April 30, 2021
Published May 15, 2021

Version of record

v1.2

Issue date

January 10, 2022

Language

English

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