IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 8 NO. 2 2022
DOI: https://doi.org/10.56201/ijssmr.v8.no2.2022.pg10.25

---

Comparative Analysis of Environmental Accounting and Corporate Performance in Nigeria

Confidence Joel IHENYEN PhD, FCA & Emmanuel ATAGBORO PhD, MNAA, MNIM

---

Abstract

The study analyzed the performance of Nigerian publicly traded corporations in terms of environmental accounting (green accounting). The investigation covers the years 2012 through 2020 using secondary data and an ex-post-facto approach. This methodology was chosen since the data had already been documented by reputable organizations like the Central Bank of Nigeria and other financial institutions. Five publicly traded firms were chosen at random from among the research's overall population: Oando, Shell, Agip, Coin Oil, and ALCON Oil. The study comprised all publicly traded Nigerian enterprises. Using Ordinary Least Square (OLS) methodology. The findings of the study exposed that restoration, redemption, and compensation expenses positively affect the companys’ performance, on performance. That is, green accounting has aided in the improvement of organizational performance in the majority of Nigeria's publicly traded companies. It also demonstrates that the majority of the firms mentioned are active in restoration, redemption, and compensation testing. The article recommends that, a standard should be created for analyzing, treating, and reporting a company's environmental actions. For the purposes of performance control and assessment, publicly traded companies should establish common environmental reporting and disclosure standards. Companies' competitiveness and overall performance can be enhanced by making their environmental practices public in their annual reports.

keywords:

Restoration, Redemption, Compensation, Performance

---

References:

Adams, R. (1997). Linking financial and environmental performance. Environmental Accounting
and Auditing Reporter, 2(10), 331.

Adediran, S. A. & Atu O. K. (2010). Corporate Environmental Responsibility as a means of
alleviating Niger Delta Crises. Academic Scholarship Journal, 2(1), 11-23.

Aina, E. O. A. (1991). The Making of Nigerian Environmental Policy. FEPA monograph/Federal
Environmental Protection Agency
Albertini, E. (2014). A descriptive analysis of environmental disclosure: a longitudinal study of
French companies. Journal of Business Ethics, 121(2), 233-254.

Anifowose, B., Lawler, D. M., Van Der Horst, D. & Chapman, L. (2016). A systematic quality
assessment of Environmental Impact Statements in the oil and gas industry. Science of the
Total Environment, 572, 570-585.

Awan, H. M. & Shahzad B. K. (2011). Customer's criteria for selecting an Islamic bank:
evidence from Pakistan. Journal of Islamic Marketing, 2(1), 14-27.

Babalola, Y. A. (2012). The impact of corporate social responsibility on firms’ profitability in
Nigeria. European Journal of Economics, Finance and Administrative Sciences, 45(1), 39-
50.

Bagur-Femenias, L., Perramon, J. & Amat, O. (2015). Impact of quality and environmental
investment on business competitiveness and profitability in small service business: The
case of travel agencies. Total Quality Management & Business Excellence, 26(7-8), 840-
853.

Bassey, E. B., Sunday, O. E. & Okon, E. E. (2013). Impact of environmental accounting and
reporting on organizational performance of selected oil and gas companies in the Niger
Delta Region of Nigeria. Research Journal of Finance and Accounting, 4(3), 57-73.

Bennett, M. & James, P. (2017). The Green Bottom Line: Environmental Accounting for
Management: Current Practice and Future Trends. Routledge.

Brammer, S. & Pavelin, S. (2008). Factors influencing the quality of corporate environmental
disclosure. Business Strategy and the Environment, 17(2), 120-136.

Brinkmann, T., Scholles, C., Wind, J., Wolff, T., Dengel, A. & Clemens, W. (2008). Processing
of coal mine gas with low methane concentrations for use in high-temperature fuel cells.
Desalination, 224(1-3), 7-11.

Burritt, R. L., Hahn, T. & Schaltegger, S. (2002). Towards a comprehensive framework for
environmental management accounting links between business actors and environmental
management accounting tools. Australian Accounting Review, 12(27), 39-50.

Chen, X., Cui, Z., Fan, M., Vitousek, P., Zhao, M., Ma, W. & Deng, X. (2014). Producing more
grain with lower environmental costs. Nature, 514(7523), 486-489.

Crowther, D. (2002). A Social Critique of Corporate Reporting: a Semiotic Analysis of
Corporate Financial and Environmental Reporting. Ashgate Publishing

D'Amico, E., Coluccia, D., Fontana, S. & Solimene, S. (2016). Factors influencing corporate
environmental disclosure. Business Strategy and the Environment, 25(3), 178-192.

Dechezlepretre, A. & Sato, M. (2014). The impacts of environmental regulations on
competitiveness", Policy brief, Grantham Research Institute on Climate Change and the
Environment & Global Green Growth Institute, November 2014.

Drabo, A. (2010). Environment quality and economic convergence: extending environmental
Kuznets Curve hypothesis. Economics Bulletin, 30(2), 1617-1632.

Egan, T. M., Yang, B. & Bartlett, K. R. (2004). Effects of organizational learning culture and job
satisfaction on motivation to transfer learning and turnover intention. Human resource
Development Quarterly, 15(3), 279-301.

Emevon, E. J. I. (2001). National Science and Technology and the Nigerian Environment. FEPA
Monograph, the making of Nigeria environmental policy Federal Environmental
protection Agency

Escrig-Olmedo, E., Munoz-Torres, M. J., Fernandez-Izquierdo, M. A. & Rivera-Lirio, J. M.
(2017). Measuring corporate environmental performance: a methodology for sustainable
development. Business Strategy and the Environment, 26(2), 142-162.

Frances, C. (1995). Green Incorporation: a Guide to Business and the Environment. Island Press.

Galani, D., Gravas, E. & Stavropoulos, A. (2011). The relation between firm size and
environmental disclosure. In International Conference on Applied Economics–ICOAE,
179-186.

Hutchinson, F. (2000). Environmental Accounting: Issues reporting and disclosure. Journal of
Applied Businesses research, 16 (4), 1-8.

Igben, R. O. (2004). Financial Accounting Made Simple. ROI Publishers, Lagos Nigeria.

Medley A. A. (1997). Environmental Accounting – what does it mean to professional
Accountants? Accounting, Auditing and Accountability Journal, 10(4), 30-41.

Odocha, J. N. K. (2002). The Danger of oil Spillage. Excepts at the National Annual General
Conference of the Association of Resident Doctor NPDC monitor, second quarter

Omnamasivaya, B. & Prasad, M. S. V. (2016). The Influence of Financial Performance on
Environmental Accounting Disclosure Practices in India: Empirical Evidence from BSE.
IUP. Journal of Accounting Research & Audit Practices, 15(3), 16.

DOWNLOAD PDF

---

Back