Publication Information
Journal: NAU Journal of Technology and Vocational Education
Volume: 8 (2023)
THE IMPACT OF ENVIRONMENTAL COST ACCOUNTINGONPROFITABILITY OF CONSUMER GOODS COMPANIESIN NIGERIA
Ezenwafor, Justina Ifeyinwa
Department of Technology and Vocational Education, Nnamdi Azikiwe University
Ifi, Chibuzor Christy
cc.ifi@unizik.edu.ng Department of Technology and Vocational Education, Nnamdi Azikiwe University
The environment provides a platform for every business enterprise to strive. Therefore, it is
imperative that there should be accountability on the use of environment especially in financial terms. The impact of such financial accountability on the financial performance of enterprises is also of great
concern. Hence, the study was aimed at assessing the impact of environmental cost accounting ontheprofitability of consumer goods companies in Nigeria. Two research questions were raised andanswered while two hypotheses were tested. The study covered a period of ten years (2013-2022). The design of the study was ex-post fact research design. Sixteen consumer goods companies whoseannual reports were published participated in the study. Annual reports were used as instrument for
data collection. Pearson correlation and panel least square regression analysis were used to analyzethe study. The findings of the study revealed that environmental cost had a positive but weak impact
on returns on equity and a negative impact on returns on assets of consumer goods companies inNigeria
imperative that there should be accountability on the use of environment especially in financial terms. The impact of such financial accountability on the financial performance of enterprises is also of great
concern. Hence, the study was aimed at assessing the impact of environmental cost accounting ontheprofitability of consumer goods companies in Nigeria. Two research questions were raised andanswered while two hypotheses were tested. The study covered a period of ten years (2013-2022). The design of the study was ex-post fact research design. Sixteen consumer goods companies whoseannual reports were published participated in the study. Annual reports were used as instrument for
data collection. Pearson correlation and panel least square regression analysis were used to analyzethe study. The findings of the study revealed that environmental cost had a positive but weak impact
on returns on equity and a negative impact on returns on assets of consumer goods companies inNigeria
Almira, N. P. A. K., & Wiagustini, N. L. P. (2020). Return on asset, return on equity, dan earning per shareberpengaruhterhadap return saham. E-JurnalManajemenUniversitasUdayana, 9(3), 1069. Amin, N., Magara, R. & Momanyi, E. (2015). Effect of Environmental Accounting on Company Financial
Performance in Kisii County. British Journal of Economics, Management & Trade, 10(1), 1-11. Arowoshegbe, A.O. & Emmanuel, U. (2016). Accounting social and environmental challenges: Atheoretical perspective. Saudi Journal of Business and Management Studies, 1(3), 143-148. Retrieved from doi:10.21276/sjbms.2016.1.3.10 on 25 May, 2020. Asuquo, A. I. (2012). Environmental friendly policies and their financial effects on corporate performanceof selected oil and gas companies in Niger delta region of Nigeria. American International
Journal of Contemporary Research, 2(1), 168–173. Effiok, S., Bassey, E. & Okon, E. E. (2013). The impact of environmental accounting and reportingonorganizational performance of selected oil and gas companies in Niger Delta Region of Nigeria. Research Journal of Finance and Accounting, 4(3), 57-73
Ezeagba, C.E., John-Akamelu, C.R. & Umeoduagu C. (2017). Environmental accounting disclosures andfinancial performance: A study of selected food and beverage companies in Nigeria (2006-2015). International Journal of Academic Research in Business and Social Sciences, 7(9), 62-174. Falope, F. J. & Offor, N. T. (2019). Environmental Cost Disclosure and Corporate Performance of
Quoted Construction Firms in Nigeria. International Journal of Advanced AcademicResearch, 5(8): 17-31. Jing, H. & Song-Qing, L. (2011). The research of environmental costs based on activity-based costs. Journal of Procedia Environmental, 10, 147-151. Kaoje, A. N, Idris, S. Danrimi, M. L., Kurfi, S. A., & Abubakar, A. (2020). Effect of environmental
protection cost on return on equity of petroleum marketing companies in Nigeria. AsianJournal of Economics, Business and Accounting, 19(2), 48-57. Retrieved fromdoi:
10.9734/AJEBA/2020/v19i230302
Kwaltommai, A.S., Enemali, M.I., Duna, J. & Ahmed, A. (2019). Firm characteristics and financial
performance of consumer goods firms in Nigeria. Scholars Bulletin, 5(12), 743-752. Nwaiwu, N. J. & Oluka, N. O. (2018). Environmental cost disclosure and financial performance of oil
and gas Nigeria. International Journal of Advanced Academic Research and Financial
management, 4(2). Okoroafor, E. N. (2016). Environmental Accounting: A framework for sustainable growth anddevelopment. The Nigerian Accountant, 49(2), 19-29. Rakos, I. S. & Antohe, A. (2014). Environmental cost- An environmental management accountingcomponent. International Journal of Academic Research in Accounting, Finance andManagement Sciences, 4(4), 166-175. Uchenu, C. A., Okeke-Okonkwo, C. I. & Ifi, C.C. (2019). Improving business education programmes
through effective school-industry collaboration for nation building. Nigerian Journal of
Business Education, 6(1), 158-171. Shehu, U. H. (2014). Environmental costs and firm performance: evidence from quoted oil andgas
companies in Nigeria. International Journal of Marketing and Technology, 1(6), 6 – 21.
Performance in Kisii County. British Journal of Economics, Management & Trade, 10(1), 1-11. Arowoshegbe, A.O. & Emmanuel, U. (2016). Accounting social and environmental challenges: Atheoretical perspective. Saudi Journal of Business and Management Studies, 1(3), 143-148. Retrieved from doi:10.21276/sjbms.2016.1.3.10 on 25 May, 2020. Asuquo, A. I. (2012). Environmental friendly policies and their financial effects on corporate performanceof selected oil and gas companies in Niger delta region of Nigeria. American International
Journal of Contemporary Research, 2(1), 168–173. Effiok, S., Bassey, E. & Okon, E. E. (2013). The impact of environmental accounting and reportingonorganizational performance of selected oil and gas companies in Niger Delta Region of Nigeria. Research Journal of Finance and Accounting, 4(3), 57-73
Ezeagba, C.E., John-Akamelu, C.R. & Umeoduagu C. (2017). Environmental accounting disclosures andfinancial performance: A study of selected food and beverage companies in Nigeria (2006-2015). International Journal of Academic Research in Business and Social Sciences, 7(9), 62-174. Falope, F. J. & Offor, N. T. (2019). Environmental Cost Disclosure and Corporate Performance of
Quoted Construction Firms in Nigeria. International Journal of Advanced AcademicResearch, 5(8): 17-31. Jing, H. & Song-Qing, L. (2011). The research of environmental costs based on activity-based costs. Journal of Procedia Environmental, 10, 147-151. Kaoje, A. N, Idris, S. Danrimi, M. L., Kurfi, S. A., & Abubakar, A. (2020). Effect of environmental
protection cost on return on equity of petroleum marketing companies in Nigeria. AsianJournal of Economics, Business and Accounting, 19(2), 48-57. Retrieved fromdoi:
10.9734/AJEBA/2020/v19i230302
Kwaltommai, A.S., Enemali, M.I., Duna, J. & Ahmed, A. (2019). Firm characteristics and financial
performance of consumer goods firms in Nigeria. Scholars Bulletin, 5(12), 743-752. Nwaiwu, N. J. & Oluka, N. O. (2018). Environmental cost disclosure and financial performance of oil
and gas Nigeria. International Journal of Advanced Academic Research and Financial
management, 4(2). Okoroafor, E. N. (2016). Environmental Accounting: A framework for sustainable growth anddevelopment. The Nigerian Accountant, 49(2), 19-29. Rakos, I. S. & Antohe, A. (2014). Environmental cost- An environmental management accountingcomponent. International Journal of Academic Research in Accounting, Finance andManagement Sciences, 4(4), 166-175. Uchenu, C. A., Okeke-Okonkwo, C. I. & Ifi, C.C. (2019). Improving business education programmes
through effective school-industry collaboration for nation building. Nigerian Journal of
Business Education, 6(1), 158-171. Shehu, U. H. (2014). Environmental costs and firm performance: evidence from quoted oil andgas
companies in Nigeria. International Journal of Marketing and Technology, 1(6), 6 – 21.