Environmental Accounting Disclosure And Sustainable Financial Performance Of Quoted Basic Materials Companies In Nigeria.

Abstract

Concerns for climate change is increasing agitation for disclosure of environmental accounting practices. This study investigated the impact of environmental accounting disclosure on sustainable financial performance of listed basic material goods in Nigeria. Specifically, the study investigated the impact of environmental disclosure index on the return on capital employed and return on assets. With the use of total enumeration sampling technique, data were drawn from the 12 companies listed under basic material on the Nigeria stock exchange over a ten-year period from 2010 to2019. Data were analyzed using both descriptive and inferential statistics. Inferential statistics in this study are correlation and multiple regression analysis. The descriptive statistics results revealed that there is relatively low disclosure of environmental accounting information in the financial statement of the listed basic material companies in Nigeria. The regression result shows that about 62% of the variation in the dependent variable (ROCE) is explained by the combined effects of environmental accounting disclosure while about 59% of the variation in return on equity was also associated with the combined effect of environmental accounting disclosure. The study therefore concludes that environmental accounting disclosure have significant impact on financial performance of listed basic materials companies in Nigeria. The paper draws the attention of management of listed basic materials in Nigeria to the need to make adequate disclosure on environmental accounting practices in the financial statement. The paper also draws the attention of Nigeria stock exchange and other regulatory authorities on the need for regulation that will make environmental accounting disclosure a regulatory disclosure rather than voluntary disclosure which is the current practice. The study also documents that environmental compliance policy, environmental conservative disclosure and environmental donation disclosure have statistically significant influence on financial performance.