The response of firms to environmental liabilities has brought about the reconfiguration of corporate performance indices in a larger context under the subtle influence of environmental and social factors, in order to develop a holistic view of an entity’s performance. This study investigated the relationship of environmental accounting disclosures and financial performance of food and beverage companies in Nigeria. Specifically, the study examined the relationship between environmental accounting disclosures and return on equity of food and beverage companies in Nigeria. It also examined the relationship between environmental accounting disclosures and return on capital employed of food and beverage companies in Nigeria, among others. Four hypotheses were formulated and tested in line with the objectives of the study. Data for the study were collected through secondary sources and analyzed using Pearson’s correlation statistical technique and multiple regression, with the aid of SPSS version 20.00. The study revealed that there is a significant relationship between environmental accounting disclosures and return on equity of selected companies. It also revealed a negative relationship between environmental accounting disclosures and return on capital employed and net profit margin of selected companies. Based on these findings, the researcher recommends among others, that firms should adopt uniform reporting and disclosure standards of environmental practices. This will enhance control and measurement of performance. The study also advocates that firms (especially smaller ones), should be encouraged to disclose their environmental practices in their annual reports in order to enhance their competitiveness which would subsequently, lead to higher corporate performance.
Adams, C.A. (2004). The Ethical, Social and Environmental Reporting Performance Portrayal Gap. Account. Audit. Accountant. Journal.
Ali, M. E. (2002). Transfer of Sustainable Energy Technology to Developing Countries as a Means of Reducing Greenhouse Gas Emission: the Case of Bangladeshi; Review of Relevant Literature.
Amahalu, N.N, Obi, C.J, Abiahu, M.C and Okosuogwe, O.A (2015). Effect of the Adoption of International Financial Reporting Standard (IFRS) on the Financial Performance of Selected Banks Quoted on the Nigerian Stock Exchange (2007-2014).
Boyd, J.(1998). The Benefits of Improved Environmental Accounting: An Economic Framework to Identify Priorities Resources for the Future. Washington, DC.
Deeegan, C. and Gordon, B. (1996). “A study of the Environmental Disclosure Practices of Australian Corporations. Accounting and Business Research Journal.
Environmental Protection Agency (1995). An Introduction to Environmental Accounting as a Business Management Tool: Key Concepts and Terms, United States Environmental Protection Agency, Office of pollution Prevention and Toxics, Washington.
EPA (1996). Valuing Potential Environmental Liabilities for Managerial Decision-Making: A Review of Available Techniques, United States Environmental Protection Agency, Office of pollution Prevention and Toxics, Washington.
Freeman, A. B. (1983). Towards an Epistemology for Radical Accounting: Beyond Objectivism and Relativism. Critical Perspective on Accounting.
Guthrie, J. and Parker, L. (1990). Corporate Social Disclosure Practices; A Comparative International Analysis. Advances in Public Interest Accounting.
Hackston, D. and Milne, M.J. (1996). Some Determinants of Social and Environmental Disclosure in New Zealand Companies, Accounting, Auditing and Accountability Journal.
Letmathe P, Doost RK (2000). Environmental Cost Accounting and Auditing. Management and . Audit. Journal.
Ngwakwe, C.C. (2008): Environmental Responsibility and Firm Performance: Evidence from Nigeria. International Journal of Social, Behavioural, Educational, Economic and Industrial Engineering
Onyali, C.I, Okafor, T.G and Egolum P.(2014). An Assessment of Environmental Information Disclosure Practices of Selected Nigerian Manufacturing Companies, International Journal of Finance and Accounting.
Roberts, R. W. (1992). Determinants of Corporate Social Responsibility Disclosure: An Application of Stakeholder Theory. Accounting, Organizations, and Society.
Trotman, K. (1999). “Social responsibility Disclosure by Australian Companies,” The Chartered Accountant in Australia.
Wiseman, J. (1982) ‘An Evaluation of Environmental Disclosures Made in Corporate Annual Reports’, Accounting, Organizations and Society.
Ezeagba, C. E., Rachael, J.-A. C., & Chiamaka, U. (2017). Environmental Accounting Disclosures and Financial 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), 147-158.
Copyright: © 2017 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
