ENVIRONMENTAL EXPENDITURES AND FINANCIAL SUSTAINABILITY OF QUOTED FOOD AND BEVERAGE MANUFACTURING FIRMS IN NIGERIA

Abstract

This study investigated the effect of environmental expenditures and financial sustainability of quoted food and beverage manufacturing companies in Nigeria. Cross sectional data were sourced from financial statement and annual reports of 10 quoted consumer goods manufacturing companies in Nigeria from 2010 to 2022. Net profit margin and earnings per share were used as proxies for financial performance, while community development cost and remediation cost were employed as proxies for independent variables. Ordinary Least Square method was used to analyze the extent to which environmental accounting affect the performance of food and beverage manufacturing companies. The regression coefficient found that community development cost has positive and insignificant effect on net profit margin while community development cost and remediation cost has positive and significant effect on earnings per share of quoted food and beverage manufacturing companies in Nigeria. The study concluded that community development cost and remediation cost had insignificant effect on financial performance of the quoted food and beverage companies in Nigeria while community development cost and remediation cost had significant effect on financial performance of the quoted food and beverage companies in Nigeria. The study recommended that the management of the quoted food and beverage manufacturing companies should invest more on community development practices to sustain and improve upon their current level of financial performance.