The Impact Of Environmental Accounting On Corporate Performance In Nigeria

Abstract

Companies’ approach to the environment is regarded as one of the major factors influencing corporate performance in Nigeria.  The objective of this study is to investigate if there is any significant relationship between environmental accounting and corporate performance in Nigeria.  The data for the study were collected from annual report and accounts of fourteen randomly selected quoted companies in Nigeria. The data were analysed using multiple regression analysis. The findings of the result show that there is significant negative relationship between environmental accounting and Return on Capital Employed (ROCE) and Earnings Per Share (EPS) and a significant positive relationship between Environmental Accounting and Net Profit Margin and Dividend Per Share. Based on this it was recommended that government should give tax credit to organizations that comply with its environmental  laws and that environmental reporting should be made compulsory in Nigeria so as to improve the performance of organizations and the nation as a whole.

Keywords: Environmental Accounting, Corporate Performance, Corporate Report.