Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Effect of Firm Characteristics on Environmental Disclosure Practices of Listed Manufacturing Companies in Nigeria

Mike terkuma soomiyol, Theophilus tersoo wajir and Yua Henry

Abstract

The study examines the effect of firm characteristics on environmental disclosure practices of listed manufacturing companies in Nigeria, the objectives of the study were to determine the effect of firm age, size, profitability and leverage of a company on environmental disclosure by listed manufacturing companies in Nigeria. The study adopted ex-post facto research design. The findings shows that firm age, profitability and leverage has a negative insignificant effect while firm size has a significant positive effect on environmental disclosure of listed manufacturing companies in Nigeria. The study recommended among others that Since firm age, size, profitability does not does not affect environmental disclosure, younger companies that are new in the market should strive to disclose more environmental information in order to attract investors who are environmental inclined.

Keywords

Environmental DisclosureManufacturing companyingProfitabilityManufacturing

References

Abdullahi, S.K., Martins, I.E., Jude D., and Ado, A., (2019) Firm characteristics and financial performance of consumer Goods firms in Nigeria. Research Journal of Finance and Accounting. 5(12), 743-752. Adugu, T.O, Soomiyol, M.T , & Yua, H. (2022). Evaluating Banks’ Financing Characteristics And Profitability Of Quoted Manufacturing Firms In Nigeria, African Journal of Business and Economic Development, 2(12) 13-27 Abubakar, A. A. & Akomolafe, A. (2017). Influence of Firms Attributes on Environmental Disclosure in Listed Brewery Companies in Nigeria, Research Journal of Finance and Accounting, 8(21), 31-35. Adeyemi.and Ayanlola (2015). Determinants of socio Environmental Reporting of Quoted Companies in Nigeria. Journal of Research in Business, Economics and Management, 4(4), 459-471. Aghdam, S.A. (2015). Determinants of environmental disclosure: the case of Iran International journey of basic sciences and applied research, 4(6), 343-349. Ahmed, K. and Nicholls, D. (20150). Environmental accounting and reporting practices: Significance and issues: A case from Bangladeshi companies. Global Journal of Management and Business, 12(4), 119-127. Akbas, H.E. (2014). Company characteristics and environmental disclosure: An empirical investigation on companies listed on Borsa Istanbul 100 index. Muhasebeve Finansman Dergisi, (62). Andrikopoulos, A. and Kriklani, N. (2013). Environmental disclosure and financial characteristics of the firm: the case of Denmark. Corporate social Responsibility and Environmental Management, 20(1), 55-64. Association of Chartered Certified Accountants (ACCA (2012). Environmental Reporting Guidelines for Malaysian Companies. Kuala Lumpur: ACCA and Ministry of Science, Technology and Environment, Malaysia. Atang, G.T., and Eyisi, S.A,(2020).Determinants of environmental disclosures of listed manufacturing firms in Nigeria, International journal of management studies and social science research.2(1),143-150. Badingatus, S. and Ukhti, M., (2021). Factors influencing environment disclosure quality and the moderating role of corporate governance Cogent Business and Management, 8:1, 1876543. Bassey, B.E., Effiok, S.O., and Eton ,O.E. (2013). The impact of environmental accounting and reporting on organizational performance of selected oil and gas companies in Niger- delta Region of Nigeria. Research Journal of Finance and Accounting, 4(3), 57-74. Beredugo, S.B and Mefor, I.P. (2012). The impact of environmental Accounting and reporting on sustainable development in Nigeria. Journal of Finance and Accounting, 3(7), 55-63. Boshnak,H.A. (2021). Determinants of corporate social and environmental voluntary disclosure in saudi listed firms. Journal of Financial Reporting and Accounting Ahead-of-print No. ahead-of-print. Brammer, S. and Pavelin, S (2018). Factors influencing the quality of corporate environmental disclosure. Business Strategy and the Environment,17(2), 111-132. Branco,M.C and Rodrigues, L.L. (2006). Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, 69(2), 111-132. Brown, N. and Deegan, C. (1998). The public disclosure of environmental performance information- A dual test of media agenda setting theory and legitimacy theory. Accounting and Business Research, 29(1), 21-41. Campbell,D..(2003). Intra and inter-sectoral effects in environmental disclosure Evidence for legitimacy theory? Business Strategy and the Environment, 12(6), 357-371. Chelli, M.,Durocher,S., and Richard, J. (2014) France’s new economic regulations: Insights from international legitimacy theory. Accounting, Auditing and Accountability Journal, 27(2), 283-316. Cho, Charles. H. - Patten, Dennis. M. (2007), “The role of environmental disclosures as tools of legitimacy: A research note, Accounting, Organizations and Society. V 32 (7) 639-647. Choi, Jong-Seo. (1999). An investigation of the initial voluntary environmental disclosures made in Korean semi-annual financial reports. Pacific Accounting Review, 11(1), 73-102. Clarkson, P.M., LI, Y., Richardson, G.D., and Vasvari, F.P. (2011).Does it really pay to be green? Determinants and consequences of proactive environmental strategies. Journal of Accounting and public policy, 30(2), 122-144. Clarkson,M.B.E.(1995). A stakeholder Framework for Analyzing and Evaluating corporate social Performance. Academy of Management Review, 20(1),92-117. Cormier, Denis - Magnan, Michel. (2003), “Environmental reporting management: a continental European perspective, Journal of Accounting and Public Policy, V 22 (1) 43-62. Cormier, D and Magnan, M. (1999). Corporate environmental disclosure strategies determinants, costs and benefits, Journal of Accounting, Auditing-Finance, 14(4), 429-451. De Vaus, D. (2002). Analyzing Social Science Data (1st Edition). London: SAGE Publications Limited De Villiers, Charl - van Staden, Chris J. (2011), “Where firms choose to disclose voluntary environmental information, Journal of Accounting and Public Policy, V 30 (6) 504-525. Deegan, Craig - Gordon, Ben. (1996), A study of the environmental disclosure policies of Australian corporations, Accounting and Business Research, V 26 (3) 187– 199. Deegan,C (2002). Introduction: The legitimizing effect of social and environmental disclosure-a theoretical foundation. Accounting, Auditing and Accountability Journal, 15(3), 282-311. Deegan, C., Rankin, M., and Tobin, J. (2002).An examination of the corporate social and environmental disclosure of BHP from 1983-1997: A test of legitimacy theory. Accounting, Auditing and Accountability Journal, 15(3), 312-343. Deegan, C., Rankin, M., and Voght, P. (2000). Firm’ disclosure reaction to major social incidents: Australian evidence. Accounting Forum, 24(1), 101-130. Dixon, Robert, Mousa, Gehan A., Woodhead, Anne. (2005), The role of environmental initiatives in encouraging companies to engage in environmental reporting, European Management Journal, V23 (6) 702-716 Egbunike, P.A, & Tarilaye, N. (2017). Firm’s Specific Attributes and Voluntary Environmental Disclosure in Nigeria: Evidence from Listed Manufacturing Companies. Academy of Accounting and Financial Studies Journal 21(3), 1-9 Egolum, P.U. Amahalu, N.N., and Obi. J.C., (2019). Effect of firm characteristics on Environmental Performance of Quoted Industrial Goods Firms in Nigeria. International Journal of Research in Business, Economics and Management 3(6), 1-13. Emmanuel, O.G., Elvis, E. and Abiola T. (2019). Environmental Accounting Disclosure and Firm Value of Industrial Goods Companies in Nigeria. Journal of Economics and Finance 10(1), 7-21. Frost, G. R., & Wilmshurst, T. D. (2000), “The adoption of environment related management accounting: an analysis of corporate environmental sensitivity, Accounting Forum. V 24 (4) 344-365. Gong Tianlei?Zhang Yong (2008). Research on the company environmental performance evaluation model. System Science and Comprehensive Studies in Agriculture, 2008, 24(8):265-269. Gray, Rob - Javad, Mohammed - Power, David M. - Sinclair, C. Donald. (2001), Social and environmental disclosure and corporate characteristics: a research note and extension, Journal of Business Finance – Accounting, V 28, (3?4) 327-356. Hasan, M.T., and Hosain, M.Z. (2015). Corporate Mandate and Voluntary Disclosure Practices in Bangladesh: Evidence from listed companies of the Dhaka Stock Exchange. Research Journal of Finance and Accounting, 6 (12), 14-32. Hoekstra, A. Y., and M. M. Mekonnen. 2011. National Water Footprint Accounts: The Green, Blue and Grey Water Footprint of Production and Consumption. Water Research Report No. 50. http://www.waterfootprint.org/Reports/Report50NationalWaterFootprints-V l2. pdf Hughes, Susan B. - Anderson, Allison - Golden, Sarah. (2001), “Corporate

More Articles from INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH

Building National Analytics Capacity: Advances and Future Pathways

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Root-Cause and Thematic Analysis for Major Incident Management: A Review

Author: Ifeanyichukwu Jeffrey Okwesa, Uchechi Mary-Linda Unamma, Uzoamaka Iwuanyanwu

Data-Quality and Single-Source-Of-Truth Frameworks for Inter- Agency Reporting: A Review

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Human-In-The-Loop Decision Systems: Advances and Future Directions

Author: Funmilayo Ashore-Onisemo, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey, Okwesa,

Roles of Oil Subsidy Removal on Transportation Cost and Water Factory in Cross River South, Nigeria

Author: Onwuzurike Peter Tobechi, Owoh Akwa Owoh, Unoh Grace Inyang, Umaru Musa