IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 6 NO. 3 2020

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Effect of Environmental Disclosures on Dividend Payout of Firms in Nigeria

Omaliko Emeka L. M.Sc, AMNIM, AIPMA, PDE AND Okpala Ngozi Eugenia. M.Sc, PDE

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Abstract

This work empirically investigated the effect of environmental disclosures on dividend payout of firms in Nigeria. The study is vital as it portrays the extent to which environmental disclosures influences firms’ dividend payout. In order to determine the relationship between environmental disclosures and firms dividend payout, some key proxy variables were used in the study, namely Employees Health and Safety Disclosure, Waste Management Disclosure, Pollution Control Disclosure and Environmental Remediation Disclosure; firms’ dividend payout is however represented by DPS/EPS. Four hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using multiple regression model. The research design used is Ex Post Facto design and data for the study were obtained from the published annual financial reports of the entire 30 firms listed under consumer goods and industrial goods sector of NSE with data spanning from 2014-2018. The findings generally indicate that Employees Health and Safety Disclosure, Waste Management Disclosure, Pollution Control Disclosure and Environmental Remediation Disclosure have significantly influenced firms’ dividend payout at 5% level of significant. Based on this, the study concludes that environmental disclosures have positively improved firms dividend payout over the years. The study however suggests that firms should have positive disposition towards environmental cost friendly practices and also disclose more of these information in their annual reports as the level of disclosure of these information have exerted significant influence on dividend payout of firms over the years.

keywords:

Employees Health and Safety Disclosure; Waste Management Disclosures; Pollution Control Disclosures; Environmental Remediation Disclosures; Dividend Payout

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