Abstract
This study empirically explored the effect of environmental sustainability cost on the financial position of quoted manufacturing firms in Nigeria with evidence from the healthcare sector. In achieving the research target, the study estimated the effect of community development cost, employee benefit cost and raw material cost on the profit after tax of the selected healthcare manufacturing sector. Research design adopted was ex-post facto design while analytical tools employed were descriptive statistics and vector auto regression analysis techniques. Relevant diagnostic tests such as panel unit root (stationarity) test and co-integration test. Findings revealed that environmental sustainability cost operationalized by community development cost, employee benefit cost and raw material cost contributes positively to the long-run sustainable growth and development of healthcare manufacturing firms in Nigeria. On this background, the study suggested that healthcare manufacturing firms in Nigeria should consider investing in their workers through engaging them in various educational training and other beneficial skills for improved performance and organizational productivity. The firms should equally consider investment in community development projects of their host communities since they lead to more patronage which makes the company to thrive.
Highlights
The main objective of this study is to ascertain the effect of environmental sustainability cost on the financial position of quoted manufacturing firms in Nigeria, with evidence from healthcare sector
Community development cost has no significant effect on profit after tax of healthcare manufacturing sector in Nigeria
This study empirically investigated the effect of environmental sustainability cost on the financial position of quoted healthcare manufacturing firms in Nigeria
Summary
Effective and sustainable healthcare system is the key to providing quality healthcare at a low cost, with large population coverage and effective disease management [1]. Environmental costs cover all costs incurred concerning environmental protection such as emissions treatment as well as wasted material, capital and labour which are called ‘non-product output’ as a result of their inefficiency in production activities [3]. They include fines, penalties, compensation, and disposal losses relating to assets which have to be scrapped or abandoned because they damage the environment [4, 5]
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