Disclosure of Community Development Cost and Its Impact on Turnover of Listed Manufacturing

Abstract

The disclosure policies regarding environmental accounting information on the annual financial report of firms became a significant and influence element to preserve the environment globally. Environmental accounting disclosure contributes in increasing the environment consciousness for organizations, and also helps in reducing harmful impacts of organization processes especially on environment and on society in general. This paper examines the impact of disclosure on community development cost on turnover of listed manufacturing firms in Nigeria. To produce valid empirical results, preliminary tests such as normality, serial correlation, heteroscedasticity, multicollinearity were conducted on research data. In addition, the Analysis of variance ANOVA was done to examine the importance of the predictors and finally regression analysis was conducted. The OLS and GLS regression analysis was conducted to show the effects of the predictor on financial performance as represented by sales revenue . The results strongly showed that environmental accounting information disclosure has a significant impact on the financial performance of quoted manufacturing firms as represented by sales revenue. In view of the findings, the researcher concludes that effective disclosure and reporting of environmental information in the annual report positively influences financial performance. The researcher recommends that, firms should continue to disclose more information on environmental related issues due to the inherent advantage derivable there from, while firms that are not disclosing their environmental activities should be encouraged to do so in view of the fact that they may be losing the patronage of ethical stakeholders who may be tempted to regard them as not environmentally friendly firms.