IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 4 NO. 7 2018

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Effect of Sustainability Costs Accounting on Networth of Listed Firms on Nigeria Stock Exchange

Ebieri Jones, Ph.D., FCIB

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Abstract

This study investigated effect of Sustainability Costs on Net-worth of firms’ listed on Nigeria Stock Exchange. The study covers the period 2005-2015, an era of substantial deregulation of the Nigeria economy. It employed ex post facto research design and extracted cross section data from eleven (11) years annual reports of twenty (20) listed companies using non- probability sampling technique. The twenty (20) listed firms were judgmentally selected from three (3) sectors namely; Industrial goods, Consumer goods and financial services sectors based on their perceived high activities. Adopting the ordinary least squares based unbalanced panel data regression technique engaging longitudinal data set of two hundred and fourteen (214) observations, the results revealed how sustainability costs affect net worth of listed firms in Nigeria in line with a priori expectation. It found that 76.4% of the total variation on net- worth of the listed firms in Nigeria is attributable to changes in sustainability cost included in the model. Furthermore the study substantiated that the financial sector has more environmental management philosophy than the consumer goods and industrial goods sectors, while the consumer goods sector has more environmental friendly disposition than the industrial goods sector. The study therefore concludes that sustainability costs have significant effect on net worth of listed firms on Nigeria Stock exchange and recommends that the industrial and consumers goods sectors should be more receptive to sustainability issues and companies should identify sustainability activities that would impact of the society.

keywords:

Sustainability Costs, Triple Bottom Line, Listed Firms, Net-Worth, Nigeria.

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