Environmental Accounting Disclosure and Market Value of Listed Non Financial Firms in Nigeria

This study examined how environmental accounting disclosure influences the market value of listed non financial firms in Nigeria between ۲۰۱۲ and ۲۰۲۰. The research design adopted is the longitudinal design. A total population of one hundred and twelve (۱۱۲) listed non-financial firms was identified. A purposive sampling was used to generate a sample of seventy-two (۷۲) listed non-financial firms sourced from firms’ annual reports. The dependent variable is the market value measured using earnings per share (EPS). The independent variable is environmental accounting measured by the index of environmental disclosure constructed using a content analysis; eight themes of the Global Reporting Initiatives (GRI). The study employed panel feasible generalized least square regression technique for data analyses. The outcomes revealed that environmental disclosure influence earning per share as well as share price positively and significantly. Hence, this study found robust proof which suggests that environmental disclosure significantly influence market value of listed non-financial firms in Nigeria. The implication is that non-financial firms in Nigeria are yet to show much concern about the physical environment in which they operate; in terms of adherence to the environmental laws and standards, process and product related issues including those related to recycling, packaging, waste, pollution emissions and effluent discharges as well as provision of sustainability and other environmental related information. It recommends that corporate firms should prioritize the inclusion of environmental information in their annual reports as such has potential to bring about higher market value.

Keywords:

Environmental accounting disclosure , Market Value , earnings per share , share price