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Effect of Green Accounting Cost on Financial Performance of Listed Industrial and Consumer Goods Companies in Nigeria

Nyorgwar I. Philemon, Kwaghfan E. Aondoakaa PhD, Luper Iorpev PhD

Abstract

This study examined the effect of green accounting costs on the financial performance of listed industrial and consumer goods companies in Nigeria for the period 2014–2025. The specific objectives were to examine the effect of safety-related cost , environmental protection cost , and pollution control cost on financial performance measured by Economic Value Added . The study adopted an ex-post facto research design. The population comprised all 34 industrial and consumer goods firms listed on the Nigerian Exchange Group as at 31 December 2025. A purposive sample of 20 firms was selected based on data availability, resulting in 240 firm-year observations. Secondary data were extracted from the published annual financial statements of the sampled companies. The data were analysed using descriptive statistics and panel regression techniques. The Hausman specification test favoured the Fixed Effects model. The Fixed Effects regression results showed that all three components of green accounting costs had positive and statistically significant effects on EVA. Pollution control cost exerted the strongest positive influence (β = 1.567, p = 0.0007), followed by safety-related cost (STC: β =

References

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