ENVIRONMENTAL ACCOUNTING COST AND FINANCIAL PERFORMANCE OF LISTED NATURAL RESOURCE FIRMS IN NIGERIA

Abstract

This study investigated the effect of environmental accounting cost and financial performance of listed natural resource firms in Nigeria. The objectives of the study were to ascertain; the effect of health safety and remediation costs on return on assets. The study anchored on the stakeholders’ theory. The population of this study was made up of four (4) listed natural resource firms on the Nigeria stock exchange (NSE) and operating in Nigeria as at 1st January, 2010 -to- 31st December, 2022. This study utilizes census sampling technique due to availability and completeness of the secondary data. The cross-sections included in the study was four (4) natural resource firms; sample period included thirteen (13) years, and total panel observation was fifty-two (52) spanning through from 2010 to 2022. The data for this study were sourced from the published annual reports and accounts of the sampled natural resource firms on the Nigeria Stock Exchange Group. The study utilized descriptive statistics, unit root test, and Panel Least Square (PLS) regression technique were used for the data analyses. The result of the study disclosed that; the effect of health safety cost on return on asset of listed natural resource firms in Nigeria is negative and statistically not significant. This study generally concluded that the effect of environmental accounting cost on financial performance of listed natural resource firms in Nigeria is positive and statistically not significant for the period 2010-2022. The study recommended amongst others that payment of health safety costs should be sustained, as a safe and secure environment enhances the financial performance of natural resource firms in Nigeria.