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. 6 NO. 2 2020

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Environmental Costs Accounting and the Earnings of Oil Firms in Nigeria

Onyekachi Silvia Nwakaego, Ihendinihu John Uzoma PhD & Azubike Joseph Uche Belonwu PhD

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Abstract

This study sought to assess the effect of environmental investments on the earnings of listed oil and gas firms within the Nigerian economy over a ten year period (2008-2017). Exposit facto research design was adopted and secondary data were sourced from the financial reports of the five selected firms. Data analysis was conducted using the ordinary least square regression method and findings indicate that firms investments on the environment associates significantly with their earnings. Hence the study recommended for all business units in Nigeria to keep pace with contemporary financial reporting issues by engaging in, and adequately reporting their investments in the replenishment of the planet as that will promote their organizational image and business. The study also noted that there is a gap in the reporting of environmental activities of firms largely drawn from unavailability of the global accounting standard to ensure accountability and harmonization of environmental reports; and so called on the International Accounting Standards Board to deliver a dedicated standard to fill this gap thus enabling the accounting profession to effectively contribute its quota towards a sustainable planet.

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