Impact of Environment Accounting on Financial Performance of Selected Quoted Companies
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Date
2017
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Publisher
International Research Journal of Management and Commerce
Abstract
Most oil and gas quoted companies in Nigeria have often given insufficient attention to the
communities where they operate, this is usually because of the need to regularly increase
their profit maximization strategy. This study focuses on the impact of Environmental
accounting on financial performance of selected companies in Nigeria. It is based on primary
and secondary data. The primary data were obtained from questionnaire distributed to the
selected oil and gas companies while the secondary data were obtained from annual report of
the companies considered. The study usedvariables such as environment accounting and
financial performance which were represented by questions relating to environment cost in
the questionnaire and profit after tax from annual report of the selected quoted companies.
These variables were analysed using Linear regression analysis and the result of the analyses
shows that there is significant relationship between environmental disclosure and return on
equity of the selected quoted oil and gas companies, because the (P-value=0.03 < F statistic
value=3.514<0.05), this implies that the alternate hypothesis should be accepted while the
null hypothesis will be rejected. Therefore, as a result of this finding, the study concluded that
oil and gas producing companies should give preference to their environment so as to
improve their future performance and profitability of their operations
Description
Keywords
Environmental accounting, Performance, Profit after tax, Environmental cost, Profit maximization