IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 8 NO. 5 2022
DOI: https://doi.org/10.56201/jafm.v8.no5.2022.pg54.66

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Green Cost Accounting and Financial Performance of Selected Upstream Companies in Nigeria

Beekue, Pius Jude Ph.D, James Lenuyiabari Ph.D

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Abstract

There is a growing concern about the implications of environmental activities on the profitability of upstream companies in Nigeria. In view of the individual importance of the environment and the continued survival of business organizations, attention is focused on the interplay of sustainability of the environment and profitability of corporate organizations. The study specifically assessed the effect of environmental conservation cost on return on assets and net profit after tax of upstream companies in Nigeria. The study adopted the ex-post factor research design and data were sourced from the companies’ annual audited financial reports for the period 2009 to 2018. The multiple regression technique was applied in estimating the study’s parameters. Findings showed that environmental conservation cost has positive and insignificant effect on return on assets and profit after tax of upstream companies in Nigeria. The study therefore concluded that green cost accounting has positive and insignificant effect on financial performance of selected upstream companies in Nigeria. Based on the findings, it is therefore recommended that Nigerian upstream Companies should ensure proper management of environmental conservation costto enhance their profitability.

keywords:

Environment, Profitability, Upstream, Companies

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