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Environmental Accounting Disclosures and Financial Performance: A Study of selected Food and Beverage Companies in Nigeria (2006-2015)

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  • Charles Emenike Ezeagba
  • John-Akamelu Chitom Rachael
  • Umeoduagu Chiamaka

Abstract

The response of firms to environmental liabilities has brought about the reconfiguration of corporate performance indices in a larger context under the subtle influence of environmental and social factors, in order to develop a holistic view of an entity’s performance. This study investigated the relationship of environmental accounting disclosures and financial performance of food and beverage companies in Nigeria. Specifically, the study examined the relationship between environmental accounting disclosures and return on equity of food and beverage companies in Nigeria. It also examined the relationship between environmental accounting disclosures and return on capital employed of food and beverage companies in Nigeria, among others. Four hypotheses were formulated and tested in line with the objectives of the study. Data for the study were collected through secondary sources and analyzed using Pearson’s correlation statistical technique and multiple regression, with the aid of SPSS version 20.00. The study revealed that there is a significant relationship between environmental accounting disclosures and return on equity of selected companies. It also revealed a negative relationship between environmental accounting disclosures and return on capital employed and net profit margin of selected companies. Based on these findings, the researcher recommends among others, that firms should adopt uniform reporting and disclosure standards of environmental practices. This will enhance control and measurement of performance. The study also advocates that firms (especially smaller ones), should be encouraged to disclose their environmental practices in their annual reports in order to enhance their competitiveness which would subsequently, lead to higher corporate performance.

Suggested Citation

  • Charles Emenike Ezeagba & John-Akamelu Chitom Rachael & Umeoduagu Chiamaka, 2017. "Environmental Accounting Disclosures and Financial Performance: A Study of selected Food and Beverage Companies in Nigeria (2006-2015)," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(9), pages 162-174, September.
    • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:9:p:162-174
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    References listed on IDEAS

    as
    1. Wiseman, Joanne, 1982. "An evaluation of environmental disclosures made in corporate annual reports," Accounting, Organizations and Society, Elsevier, vol. 7(1), pages 53-63, January.
    2. Boyd, James, 1998. "The Benefits of Improved Environmental Accounting: An Economic Framework to Identify Priorities," Discussion Papers 10609, Resources for the Future.
    3. Roberts, Robin W., 1992. "Determinants of corporate social responsibility disclosure: An application of stakeholder theory," Accounting, Organizations and Society, Elsevier, vol. 17(6), pages 595-612, August.
    4. Boyd, James, 1998. "The Benefits of Improved Environmental Accounting: An Economic Framework to Identify Priorities," RFF Working Paper Series dp-98-49, Resources for the Future.
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    Cited by:

    1. Nandini E. S & Sudharani R & Suresh N, 2022. "A Study on Impact of Environmental Accounting on Profitability of Companies listed in Bombay Stock Exchange," Papers 2207.00716, arXiv.org.
    2. Okere Obinna Cletus PhD & Prof. S.C Nwite PhD & AGANA Ogagaoghene John, PhD, ACA, 2022. "Environmental Accounting Costs and Financial Performance of Selected Quoted Oil and Gas Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(10), pages 175-187, October.
    3. Oyedokun, Godwin Emmanuel & Erinoso, Olusayo Mary, 2022. "Environmental Conservation, Sustainability and Financial Performance of listed Oil and Gas Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(8), pages 582-590, August.

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