Environmental Accounting Disclosure and Financial Performance of Quoted Manufacturing Firms in Nigeria: An Empirical Analysis

This study examines the relationship between environmental accounting disclosure and the financial performance of quoted manufacturing firms in Nigeria. The study utilizes secondary data from annual reports of selected manufacturing firms listed on the Nigerian Exchange Group from 2018 to 2023. Environmental accounting disclosure is categorized into environmental policy disclosure, environmental performance disclosure, compliance with environmental regulations, and environmental initiative and risk assessment disclosure. Financial performance is measured using earnings per share (EPS), with firm size included as a control variable. The study employs multiple regression analysis to assess the impact of environmental disclosure on financial performance. Findings reveal a significant positive relationship between environmental policy disclosure and financial performance, while environmental performance disclosure and risk assessment disclosure show negative associations with EPS. Compliance with environmental regulations does not exhibit a significant effect on financial performance. The study contributes to sustainability accounting literature by providing empirical evidence on the role of environmental disclosure in corporate financial outcomes. The findings offer practical implications for policymakers, corporate managers, and stakeholders seeking to enhance environmental reporting practices and sustainable business performance.