ENVIROMENTAL ACCOUNTING DISCLOSURE, OPERATIONAL EFFICIENCIES AND FINANCIAL PERFORMANCE OF LISTED BEVERAGES FIRMS IN NIGERIA

Ibrahim Adeyinka Aderibigbe; Adewumi Zaid Adeyemi; Oluwatimileyin Esther Adenle; Mutiu Olaleke Agboke

Authors

Ibrahim Adeyinka Aderibigbe Department of Accounting, Osun State University, Osogbo, Osun State
Adewumi Zaid Adeyemi Department of Accounting, Osun State University, Osogbo, Osun State
Oluwatimileyin Esther Adenle Department of Accounting, Osun State University, Osogbo, Osun State
Mutiu Olaleke Agboke Senior Lecturer Faculty of Law Fountain University, Osogbo

Keywords:

Financial performance, Accounting Disclosure, Beverages Companies, Environmental Accounting

Abstract

The study examined how environmental accounting disclosure affects the financial performance of listed beverage companies in Nigeria. An ex post facto research design was adopted, using secondary data extracted from the annual reports of five beverage firms quoted on the Nigerian Exchange Group for the period 2014–2023. The analysis involved descriptive statistics and inferential techniques, specifically pooled ordinary least squares regression. The findings showed that environmental accounting disclosure has a positive and statistically significant effect on the financial performance of listed beverage firms in Nigeria. Specifically, the study confirmed that greater environmental disclosure is associated with a significant increase in return on assets. This study therefore recommends Beverage firms ought to create strong frameworks for them to align with environmental laws and regulations. Since there is a high positive relationship between compliance and financial performances, firms need to spend more resources on training employees about relevant standards of the environment, as well as resources to ensure that all employees are aware of and adhere to these standards. This will keep them updated on new legislation through regular inspections, awareness campaigns among workers, and working relationships with government agencies.