ABSTRACT
The study examined the effect of
environmental cost on corporate performance of listed manufacturing firms in
Nigeria. The specific objectives examined the effect of environmental cost on
return on equity, return on asset and Tobin of listed manufacturing firms in
Nigeria. The study employed the use of Ex-Post Facto research design and
content analysis. A Simple linear regression was used to analyse the data
collected from the listed manufacturing firms. The result revealed that; Environmental cost had a positive significant
effect ( p.value of 0.0466 which is less than
0.05 ) on return on equity and ( p-value
of 0.0000, which is less than 0.05) on return on asset of listed manufacturing firms in Nigeria
and both indicates that the test is statistically
significant at 5% level.
The result also revealed that environmental cost had no significant effect (p-value
of 0.6475, which is greater than 0.05) on Tobin Q of listed manufacturing firms in Nigeria and this
indicates that the test is statistically
insignificant at 5% level.
The study therefore recommended that firms in Nigeria should invest reasonable amount on environmental
issues and report same in their financial reports for the various stakeholders
to see. This will create a good relationship with the host community which will
enable growth in production and increase in turnover, this is as a result of
the positive relationship of environmental cost disclosure on return on asset
and equity. Again, the Financial Reporting Council of Nigeria (FRC) and others
alike should make environmental cost reporting a mandatory report as this can
help compel the firms to engage in environmental conservation activities that
will mitigate the adverse effect of their business activities on the host
communities. As a result, this will lead to a conducive business operating
environment and increase in profitability.
GABRIEL, A (2023). Effect Of Environmental Cost On Corporate Performance Of Manufacturing Firms In Nigeria. Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-environmental-cost-on-corporate-performance-of-manufacturing-firms-in-nigeria-7-2
ATANG, GABRIEL. " Effect Of Environmental Cost On Corporate Performance Of Manufacturing Firms In Nigeria" Mouau.afribary.org. Mouau.afribary.org, 20 Jun. 2023, https://repository.mouau.edu.ng/work/view/effect-of-environmental-cost-on-corporate-performance-of-manufacturing-firms-in-nigeria-7-2. Accessed 31 Oct. 2024.
ATANG, GABRIEL. " Effect Of Environmental Cost On Corporate Performance Of Manufacturing Firms In Nigeria". Mouau.afribary.org, Mouau.afribary.org, 20 Jun. 2023. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-environmental-cost-on-corporate-performance-of-manufacturing-firms-in-nigeria-7-2 >.
ATANG, GABRIEL. " Effect Of Environmental Cost On Corporate Performance Of Manufacturing Firms In Nigeria" Mouau.afribary.org (2023). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-environmental-cost-on-corporate-performance-of-manufacturing-firms-in-nigeria-7-2