Environmental Accounting And The Performance Of Quoted Manufacturing Companies In Nigeria

Reference code: C051

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

................. Howes (2002) notes that environmental accounting deals with the generation, analysis and use of monetized environmentally-related information in order to improve corporate environmental and economic performance. Within this context, environmental accounting is perceived to extend beyond internal and external environmental accounting, and also establishes a functional link with financial performance.
In relating environmental accounting with profitability, Roberts (1992) explains using stakeholder’s theory that economic performance of a firm affects management’s decision to engage in accounting for the environment. Ali (2000) highlights the possibility that financial performance of companies incurring cost from environmental accounting may differ significantly from those that do not and this could signal a practice where companies can pollute the environment and yet appear more economic efficient than others which incur costs to protect the environment.
Also, there is evidence that disclosures of environmental performance measures are relevant to the value of the firm, with high pollution levels lowering firm valuations (Hughes, 2000). There is also a suggestion that companies that rate well on social and environmental criteria also provide better than average returns to shareholders (Al-Tuwaijri et al., 2004). Thus, this study aims to investigate the relationship between environmental accounting practices and the financial performance of quoted manufacturing companies located in Port Harcourt, Rivers State. ............... 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 tf Research Question 8
1.5 Research Hypotheses 8
1.6 Significance of the Study 9
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 & 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

74 Pages

Reference code: c051
Reference code: c051

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