A Comparative Analysis of Effect of Environmental Accounting Cost on Productivity of Oil and Gas & Industrial Goods Firms in Nigeria

Abstract

This study examined comparative analysis of effect of environmental accounting cost on productivity of oil and gas and industrial goods firms in Nigeria. The specific objective of this study was to determine effect of environmental accounting cost on the productivity of oil & gas and industrial goods firms in Nigeria for the period 2009 – 2018. The study adopted three specific objectives: to ascertain effect of economic accounting cost on firm productivity; to determine effect of discretionary accounting cost on firm productivity; and to examine effect of ethical accounting cost on firm productivity. The study employed the ex-post facto research design and data were collected on the annual reports and financial statements of six sampled firms in the two sectors. The 3 Oil and Gas firms that were purposively sampled include Mobil Nig. Plc, MRS and Total Nig. Plc, while the 3 industrial goods firms are Berger Paints PLC, Dangote Cement PLC and First Aluminum Nig. PLC. Data were analyzed using SPSS V. 20.0 and findings revealed that economic cost and ethical cost had significant effect on productivity while discretionary accounting cost had no significant effect on productivity of oil and gas firms in Nigeria. It was also found that economic, discretional and ethical accounting costs had no significant effect on productivity of the industrial goods firms in Nigeria. The study recommended that management should consolidate effort on economic and ethical accounting costs in order to enhance productivity of the economy and to stabilize the communities where oil and gas as well as industries operate in Nigeria.

Keywords: Comparative Analysis, Environmental Accounting Cost, Oil & Gas, Industrial Goods firms, Nigeria.

DOI: 10.7176/RJFA/13-20-04

Publication date:October 31^st 2022