Relationship between Environmental Accounting Practices and Financial Performance of The Listed Manufacturing Companies In Nigeria.

Abstract

This study investigated whether there is a significant relationship between environmental accounting practices and financial performance of the listed companies in Nigeria: Specifically, the study evaluates the trend of financial performance of the listed manufacturing companies for a period of 18 years (2001-2018) using returns on capital employed and return on equity as proxies for financial performance. The study also determines whether there is a significant relationship between environmental accounting practices such as pollution control, waste reduction, and recycling, cutting use of energy, cutting paper consumption and carbon footprint reduction and financial performance of selected manufacturing companies. The study used a sample of 12 manufacturing companies purposively drawn from the 97 manufacturing companies listed on the Nigeria stock exchange group. The result shows that is heavy volatility in the performance of listed manufacturing companies during the period under consideration. The result also reveals that there is a significant relationship between return on capital employed and all environmental accounting practices indicators while return on equity has a significant relationship with four environmental accounting practices. The study concludes that there is a significant relationship between environmental accounting practices and financial performance of the listed manufacturing companies in Nigeria.