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The Moderating Effect of Corporate Governance Quality on the Relationship Between Green Accounting Costs and Financial Performance: Evidence from Listed Manufacturing Companies in Nigeria

Nyorgwar I. Philemon

Abstract

This study examines the moderating role of corporate governance quality in the relationship between green accounting costs comprising safety-related costs, environmental protection costs, and pollution control costs and financial performance, measured by Economic Value Added , in 20 listed Nigerian manufacturing firms from 2014 to 2023 (200 firm-year observations). Using random effects panel regression with robust standard errors, results reveal that environmental protection and pollution control costs exert significant positive direct effects on EVA, while safety- related costs show a positive but insignificant direct impact. Corporate governance quality significantly and positively moderates all three relationships, amplifying EVA gains most notably transforming the latent benefits of safety-related costs into measurable value. Anchored in stakeholder theory, these findings highlight governance as a critical enabler for sustainability- driven performance in emerging markets, where institutional challenges persist. Implications for policy and practice emphasize integrated reporting and ESG-focused governance to unlock green investments' full potential.

Keywords

green accounting costscorporate governance qualityEconomic Value Addedsustainabilitymanufacturing sectorNigeria

References

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