Abstract
The severity of environmental degradation has its adverse impact on the quality of lives. Measures are being taken both at the national and international level to reduce and mitigate its impact on the environment, social, economic, and political sphere. This study investigated the effect of green accounting practices on shareholders’ value in Nigeria by drawing samples from listed consumer goods firms on the floor of the Nigerian Exchange Group from 2012 to 2021. Ex post facto design was used, secondary data were employed and least square dummy variable regression was used in analyzing the data. A sample size of 20 companies were determined using Tato Yamane formula and these companies were selected using simple random sampling technique. Green accounting being the dependent variable was proxied by biodiversity disclosure, emission disclosure, waste disclosure, water & effluents disclosure, and compliance to environmental laws & regulations disclosure. The dependent variable of this study was shareholders’ value proxied by shareholders’ value added (SHVA). The result showed that biodiversity disclosure and compliance to environmental laws disclosures have a positive significant effect on shareholders’ value added; water & effluents disclosures have a positive significant effect on shareholders’ value added of listed consumer goods firms in Nigeria during the period under study. It was thus concluded that green accounting practices have significant effect on shareholders’ value added of manufacturing companies in Nigeria. Therefore, it was recommended among others that compliance to green accounting practices should be made mandatory for all companies because standard green accounting disclosures are signals to all stakeholders that the companies are ‘green’ and eco- friendly companies and this in turn boost shareholders value.
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More From: European Journal of Accounting, Auditing and Finance Research
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