Environmental Management and Financial Performance of Listed Industrial Goods Companies in Nigeria

AFRAG003

Environmental Management and Financial Performance of Listed Industrial Goods Companies in Nigeria Mohammed Halliru

(Corresponding Author)

Sule Lamido University, Kafin Hausa. and

Ishaq A. Samaila

Department of Accounting, Bayero University, Kano ishaqabuhaidara@gmail.com

Abstract

This study examines the effect of Environmental Management on Financial Performance of Listed Industrial Goods Companies in Nigeria. The study utilized documentary data collected from annual reports and accounts of the sampled

companies for the period 2010 to 2019. Panel data methodology was employed for the data analysis. Therefore, Ordinary Least Square (OLS), Fixed Effect (FE) and Random Effect (RE) techniques were applied. Findings from the study revealed that while Community Development Cost (CDC) has positive insignificant impact on Return on Assets (ROA), Waste Management Cost (WMC) and Donation and Charitable Contribution (DCC) has positive significant impact on ROA of listed industrial goods Companies in Nigeria. The study therefore concluded that Environmental Management enhances financial performance of listed industrial goods companies in Nigeria. On the basis of this conclusion, the study recommended that management of listed industrial goods companies in Nigeria should strive to increase their participation in Environmental Management as it will go a long way in providing a peaceful environment, increased patronage and consequently improved ROA and EPS.

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