Environmental Disclosure and Firm Performance of Selected Firms in Nigeria

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Published: 2023-08-09

Page: 366-379

Ezechukwu Clementina Ifeoma *

Department of Accountancy, Faculty of Management Sciences, Chukwuemeka Odumegwu Ojukwu University (Igbariam Campus), Anambra State, Nigeria.

*Author to whom correspondence should be addressed.


This study investigated the effect of environmental disclosures and firm performance of selected consumer goods firms in Nigeria from (2011-2020). The study has two research questions and two hypotheses.  Ex-post facto research design was employed in the study. Specifically, the study investigated the effect of local content disclosures on returns on assets of consumer goods manufacturing companies in Nigeria; the study also examined the impact of emissions disclosure on returns on assets of consumer goods manufacturing companies in Nigeria. The population of the study included allconsumer goods manufacturing firms quoted on the Nigerian Exchange Group (NXG) (NSE) as at 31st December 2021 with a sample size of Sixteen (16) consumer goods manufacturing companies selected from the population sector. The study relied on secondary sources of data which was obtained from Annual reports of sampled companies as provided by individual companies and Nigerian Exchange Group (NXG) website. The Fixed effect panel least square regression analysis was employed in validating the hypotheses. The investigation discovered a significant effect of local content disclosures on returns on assets of consumer goods manufacturing companies in Nigeria; the study also found that emissiondisclosure has no significant impact on returns on assets of consumer goods manufacturing companies in Nigeria. Consequent on the findings, the study recommends amongst others that a detailed and well spelt out local content and environmental disclosure theme and evidence must be established to provide firm foundation for corporate environmental disclosures among companies. Also, the study recommends that a standard setting body should set up guidelines or principles or accounting standards in other to improve the financial and non-financial environmental disclosures of companies in Nigeria.

Keywords: Environment, emission, local content laws, returns on assets

How to Cite

Ifeoma , E. C. (2023). Environmental Disclosure and Firm Performance of Selected Firms in Nigeria. Asian Journal of Advances in Research, 6(1), 366–379. Retrieved from https://mbimph.com/index.php/AJOAIR/article/view/3595


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