ENVIRONMENTAL ACCOUNTING PRATICES AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA
Keywords:
Environmental Cost Disclosure, Corporate Social Responsibility, Financial Performance, Manufacturing Firms, Environmental Disclosure Index, Sustainability Practices.Abstract
This study investigates the relationship between environmental cost disclosure, corporate social responsibility (CSR) expenditure, and financial performance of quoted manufacturing firms in Nigeria from 2019 to 2026. Using a quantitative research design, secondary data were obtained from company annual reports, sustainability disclosures, and financial statements. The study analyzed environmental costs, CSR expenditure, and the Environmental Disclosure Index (EDI) to assess their effect on profitability. Descriptive statistics, correlation, and panel regression analyses were applied to test the hypotheses. Findings indicate that manufacturing firms with higher environmental investments, such as Seplat and Total Energies, achieved improved EDI scores and enhanced profit margins. Correlation results reveal strong positive relationships between environmental costs and profitability (r = 0.78), CSR expenditure and sustainability disclosure (r = 0.84), and EDI and profit after tax (r = 0.81). Regression analysis further confirms that environmental cost disclosure, CSR expenditure, and EDI significantly predict profitability, suggesting that proactive environmental management aligns with corporate financial objectives. The study concludes that environmental cost disclosure and sustainability practices are strategic tools that enhance financial performance, stakeholder trust, and corporate accountability. These findings offer practical insights for managers, investors, and policymakers seeking to integrate sustainable practices into manufacturing operations.
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