Environmental Disclosure and The Quality of Financial Reports of Listed Nigerian Manufacturing Firms

Abstract

This study examined the relationship between environmental disclosure and the quality of financial reports in Nigerian manufacturing sector. The specific objectives were to examined the relationship between environmental donations and sponsorship disclosure on the quality of financial reports among manufacturing firms in Nigeria; examined the relationship between environmental restoration disclosure on the quality of financial reports among manufacturing firms in Nigeria, accessed the relationship between environmental waste management disclosure on the quality of financial reports among manufacturing firms in Nigeria and ascertain the relationship between environmental donations and sponsorship disclosure, restoration and waste management disclosure and the quality of financial reports among manufacturing firms in Nigeria. Ex-post facto research design was adopted and a final sample size of 10 manufacturing firms was purposively selected for a period of 10 years. The data were collected through content analysis method. Descriptive and inferential statistics were used to analyzed collated data. Findings revealed that two out of the three components of the environmental accounting information, namely, Environmental Restoration (ER),and Environmental Donations and Sponsorship (EDS) have no significant influence on the quality of financial reports among the manufacturing firms. Thus, the null hypothesis were accepted. The study concluded that the influence of the disclosure of accounting information about environmental restoration, and environmental donations and sponsorship on the quality of financial reports of manufacturing firms in Nigeria were insignificant. It was recommended that Standard setters and policy makers should work with the Ministry of Environment to consider introducing mandatory disclosures which are consistent.