INTERNATIONAL JOURNAL OF ACCOUNTING AND BUSINESS MANAGEMENT (IJABM)
Environmental Costs and Financial Performance of Listed Consumer Goods Manufacturing Companies in Nigeria
E-ISSN: 4556-2236
P-ISSN: 5433-437X
DOI: https://iigdpublishers.com/article/404
The study examined environmental costs and financial performance of listed consumer goods manufacturing companies in Nigeria. The specific objectives
include to: ascertain the relationship between environmental restoration cost and return on capital employed of listed manufacturing sector companies in
Nigeria; determine the relationship between community development cost and return on capital employed of listed manufacturing sector companies in
Nigeria. The researcher adopted the ex-post facto research design technique; the population size of the study was twenty-one (21) firms while the sample
size of ten (10) consumer goods manufacturing companies listed on the Nigeria Exchange Group (NGX) was selected. The sources of data collection were secondary sources. The descriptive statistics, multiple linear regressions model, R-Square, Adjusted R-Square, t-Statistic (t-Stat), Statistics and P-value are used to analyze the data collected. The findings of the study include: environmental restoration cost showed positive and significant relationship with returns on capital employed; community development cost indicated positive and significant relationship with returns on capital employed amongst others. In conclusion, the study was conducted to examine the relationship between environmental costs (environmental restoration costs and community development costs) and financial performance (return on capital employed and earnings per share) of the listed consumer goods manufacturing companies in Nigeria which the results were positive and significant. From the analysis of data and the discussion of the findings, the researcher concluded that the results were positive and significant. It is recommended that companies should adopt a strategic approach to environmental restoration efforts and also, management should continue investing in community development initiatives as they have the potential to enhance both their financial performance and societal impact.
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