Abstract
Over the years, firms have often neglected the stewardship accounting relating to cost incurred in environmental development activities. This research tried to research on the implication of such cost. Thus, this work dwelt on examining the effect of environmental accounting on the profitability offirms in Nigeria. Guinness Nigeria pie was adopted as the case study for this work. An ex-post facto research design was adopted in this work as the financial statement of Nigeria breweries for 5years (2011-2015) was analyzed. The methodology adopted a case study and ex post facto data. It was discovered that Guinness Nigeria pie do not incur environmental cost and as such, there was no relationship between the profit of Guinness Nigeria and environmental cost. However, environmental was shown to be related with the profit profile of Guinness pie as an increase in Net profit, return on asset and return on equity occasioned an increase cost. In a contrast, an increased social cost reduced the reported profit of Nigeria Breweries. The research concluded that there are two sided relationships between social cost and profit profile of Nigeria breweries in that an increase in the profit of Nigeria breweries will occasion an increase the social cost but an increase in environmental cost will occasion a decrease in profit reported. Thus, this work concluded environmental cost has an impact on the profit profile of firms in Nigeria. The recommendations of this research are that firms should monitor and control their social cost that government should set up a mechanism to foster the reporting of environmental cost by firms appropriately as well as make environmental cost compulsory for other firms other than oil firms
TABLE OF CONTENT
DECLARATION
CERTIFICATION
DEDICATION
ACKNOWLEDGEMENT
TABLE OF CONTENT
Abstract
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Research Questions
1.5 Research Hypotheses
1.6 Scope of the Study
1.7 Significance of the Study
1.8 Limitation of the Study
CHAPTERTWO: REVIEW OF RELATED LITERATURE
2.1 CONCEPTUAL FRAMEWORK
2. 1. 1 Concept or Social Accounting
2.1.2 Concept of Environmental Accounting
2.1.3 Social and Environmental Accounting
2.1.4 Different Areas of Social And Environmental Accounting 12
2.1.4.1 Corporate Social Responsibility (CSR) 12
2.1.4.2 Sustainability Reporting 12
2.1.4.3 Triple Bottom Line 13
2.1.5 Benefits Of Environmental Accounting 14
2.1.5.1 Transparency And Moral Concern 14
2.1.5 .2 Creating Financial Value 14
2.1.5.3 Creating Re-Enforcement Of Organization Image 14
2.1.5.4 Encourage Innovation 15
2.1.5.5 Competitive Advantage 15
2.1.5.6 Attract Long Term Capital And Favorable Financing Conditions 15
2.1.5.7 Understanding of environmental cost can promote more accurate costing and pricing of products.
2.1.6 Accounting Interest In The Environment 16
2.1.7 Environmental Information And Their Users 17
2.1.8 Resource Based Perspective On Corporate Environmental Performance and Profitability
2.1.8.1 Physical Assets And Technology: 18
2.1.8.2 Human Resources And Organizational Capabilities: 19
2.1.8.3 Intangible Resources 20
2.1.8.4 Increase Revenue 20
2.1.8.5 Environmental Performance Reduces Cost: when firms investin 20
2.2 Theoretical Framework:
2.2. I Legitimacy Theory:
2.2.2 Stakeholders Theory
2.2.3 Positive Accounting Theory
2.2.4 Social Contract Theory
2.3 Empirical Framework
CHAPTER THREE:
RESEARCH METHODOLOGY
3.1. Research Design 28
3.2 Data sources and method of data collection 28
3.2.2 Methods of data collection 29
3.3 Model specification 29
3.4 Data analysis techniques 30
CHAPTER FOUR:DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Data presentation 31
4.2 Data analysis 35
4.3 Test of hypotheses 37
4.4 Discussion of findings 39
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS 40
5.2 CONCLUSION 41
5.3 RECOMMENDATION 41
5.4 SUGGESTION FOR FURTHER RESEARCH 42
REFERENCE 43
