Environmental Accounting and Financial Performance of Manufacturing Firms in Nigeria
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Authors: Alabadan Dinatu Nna;<br> Oshatimi Omowumi Olanike;<br> Owoeye Taiwo Omolade;<br> Odigun Grace Oluwafunmilayo;<br> Fapetu Taiwo Adeola
Affiliations: Department of Accounting Federal University Oye-Ekiti, Ekiti state.
Corresponding Author: Dinatu.alabadan@fuoye.edu.ng
Published in: ESUI Business and Management Journal, Volume 3, Issue 2 (2026)
Pages: 66-77
ISSN: 1595-5656
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Status: Approved
License: Creative Commons Attribution 4.0 International
Abstract
Environmental accounting practices have gained prominence as manufacturing firms navigate growing
regulatory pressures and stakeholder demands for ecological accountability. In Nigeria's
manufacturing sector, the financial implications of such practices remain inadequately understood. This
study examines how environmental cost disclosure and waste management expenditures influence
profitability metrics net profit margin and earnings per share among ten firms listed on the Nigerian
Exchange Group over a decade (2015–2024). Panel regression analysis, guided by Hausman
specification tests, reveals statistically insignificant relationships: environmental cost disclosure
correlates negatively but weakly with both performance indicators (p > 0.60), while waste management
costs show positive yet non-significant associations (p > 0.59). The findings suggest that environmental
accounting in this context operates primarily as a legitimacy mechanism rather than a short-term profit
driver. Financial returns from sustainability investments appear deferred, potentially materializing
through enhanced reputation, risk mitigation and operational efficiencies beyond conventional
reporting horizons. The research contributes empirical evidence on the sustainability–performance
nexus in an emerging market setting and underscores the importance of long-term evaluation
frameworks for environmental accountability initiatives.
Keywords
Environmental accounting, environmental cost disclosure, waste management cost; financial performance, earnings per share
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Alabadan Dinatu Nna; Oshatimi Omowumi Olanike; Owoeye Taiwo Omolade; Odigun Grace Oluwafunmilayo; Fapetu Taiwo Adeola. (2026). "Environmental Accounting and Financial Performance of Manufacturing Firms in Nigeria." ESUI Business and Management Journal, 3(2), 66-77.
Publication Timeline
- Received: July 29, 2026
- Accepted: July 29, 2026
- Published: July 29, 2026
- Last Updated: July 29, 2026
DC.Title: Environmental Accounting and Financial Performance of Manufacturing Firms in Nigeria DC.Creator: Alabadan Dinatu Nna; Oshatimi Omowumi Olanike; Owoeye Taiwo Omolade; Odigun Grace Oluwafunmilayo; Fapetu Taiwo Adeola DC.Date.issued: 2026-07-29 DC.Source: ESUI Business and Management Journal DC.Source.Volume: 3 DC.Source.Issue: 2 DC.Identifier: 104 DC.Language: en DC.Type: Text.Serial.Journal DC.Rights: Copyright (c) 2026 Alabadan Dinatu Nna; Oshatimi Omowumi Olanike; Owoeye Taiwo Omolade; Odigun Grace Oluwafunmilayo; Fapetu Taiwo Adeola DC.Rights.License: CC BY 4.0 DC.Identifier.PDF: https://esuibusinessjournal.com/uploads/manuscripts/6a6a19de7f18c_Environmental_Accounting_and_Financial_Performance_of_Manufacturing_Firms_in_Nigeria.pdf