ENVIRONMENTAL ACCOUNTING AND THE PERFORMANCE OF QUOTED MANUFACTURING COMPANIES IN PORT HARCOURT

Reference code: C050

ABSTRACT

This research project investigated the environmental practices of quoted manufacturing companies in Port Harcourt and how such practices affect their profitability. The major purpose of the research was to determine the relationship between environmental accounting practices and profitability of the companies. In order to achieve the purpose of the study, three (3) research questions and hypotheses were formulated and data collected thruogh the issue of ninety one (91) questionnaires to accounting staff of quoted manufacturing companies resident in Port Harcourt. the data which was tested using Pearson Correlation led to the conclusion that the cost of preventing environmental degradation has a considerably negative effect on the performance of the manufacturing companies. We  further conclude that the costs incurred in the course of reducing depletion of non-renewable natural resources reduces the profitability of quoted manufacturing companies in Port Harcourt. Finally, we conclude the cost of reducing or preventing deforestation retards the profitability of quoted manufacturing companies. Based on the conclusions above, we make the following recommendations: Government should make Environmental accounting and reporting compulsory for all quoted manufacturing companies. Government agencies responsible for ensuring that companies are environmentally responsible must find a way to provide incentives for manufacturing companies in order to encourage them to take the necessary steps to protect the environment. Finally, is recommended that manufacturing companies must find innovative ways of reducing the costs involved in their environmental practices.

INTRODUCTION

............... The relationship between environmental accounting information and firm performance has attracted considerable research attention. Arguably, management has a primary responsibility to shareholders, and their continued relevance depends on their ability to generate returns on investment. However, the cost of business activities to the environment must be factored into the firm’s cost and should be accounted for rather than perceived as an opportunity cost for corporate profiteering.
Recent discourses on the emerging environmental challenges suggest that the shareholder view may simply represent an incomplete understanding of environmental matters. In unveiling the implications of environmental accounting that may even pose a threat to shareholders’ interest, Akhaiyea (2009) argues sturdily that “Corporate negligence and avoidance of environmental costing leave gap in financial information reporting, hence there is no completeness and correctness of fair view to users of financial information, such as shareholders, and potential financial investors.”
This means that environmental implications of business operations could affect corporate financial statement such as creating liabilities which may be actual or contingent and may pose a significant threat to asset values. The Hong Kong Institute of Certified Public Accountants (HICPA), 2004 notes that environmental matters constitute intrinsic risk to corporate financials. In certain scenarios, these risks include risk of material misstatement of relevant information that is of significant interest to shareholders.
Consequently, there is increased awareness from both shareholders and stakeholders on the importance of accounting for the environment, and more and more organizations have found themselves being confronted with issues of environmental accountability. Notwithstanding the increased emphasis of the need for companies to account for the environment, the effect of environmental accounting on firm’s financial performance has emerged in recent times as a subject of interest. The dominance of economic rationality as fostered by the voluntary environmental disclosures has signaled firms’ increased interest in cost-benefit perspective to environmental accounting. ............... FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF RESEARCH PROBLEM 4
1.3 PURPOSE OF THE STUDY 7
1.4 STATEMENT OF RESEARCH QUESTION 8
1.5 RESEARCH HYPOTHESES 8
1.6 SIGNIFICANCE OF THE STUDY
1.7 SCOPE AND LIMITATION OF STUDY 10
1.8 ORGANIZATION OF STUDY 11

CHAPTER TWO
REVIEW OF RELEVANT LITERATURE
2.0 INTRODUCTION 12
2.1 THEORETICAL FRAMEWORK 12
2.1.1 Stakeholder Theory 13
2.3 THE CONCEPT OF ENVIRONMENTAL ACCOUNTING 15
2.3.1 Environmental Cost Accounting 20
2.3.2 Environmental Accounting in Nigeria 20
2.3.3 Environmental Accounting and reporting 20
2.3.4 Benefits of Environmental Accounting 22
2.3.5 Environmental Reporting 26
2.4 ENVIRONMENTAL PRACTICES AND FINANCIAL PERFORMANCE 28
2.5 REVIEW OF EMPIRICAL LITERATURE 29

CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION 36
3.1 RESEARCH DESIGN 36
3.2 POPULATION FOR THE STUDY 37
3.3 SAMPLE AND SAMPLING TECHNIQUE 37
3.4. NATURE AND SOURCES OF DATA 38
3.5 METHOD OF DATA COLLECTION 39
3.6 METHODS OF DATA ANALYSIS 39
3.7 VALIDITY AND RELIABILITY OF INSTRUMENT 40

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 INTRODUCTION 41
4.1 PRESENTATION OF DATA 41
4.2 DATA ANALYSIS 44
4.3 HYPOTHESES TESTING 52

CHAPTER FIVE
SUMMARY CONCLUSIONS AND RECOMMENDATIONS
5.0 INTRODUCTION 55
5.1 SUMMARY 55
5.2 CONCLUSIONS 57
5.3 RECOMMENDATIONS 57
BIBLIOGRAPHY   60

77 Pages

Reference code: c050
Reference code: c050

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