ENVIRONMENTAL DISCLOSURE AND FINANCIAL PERFORMANCE OF QUOTED CONSUMER GOODS FIRMS IN NIGERIA

Ambiguity surrounding environmental disclosure can lead to informational deficiencies for conscientious financiers and investors during evaluations. This research delves into how environmental disclosure influences the financial results of Nigerian consumer goods companies that are publicly traded. The study includes a sample size of seventeen (17) enterprises out of the twenty-one (21) such firms in Nigeria. Hypotheses were evaluated through a model for random effect regression after diagnostic examinations.The findings reveal that environmental conservative cost disclosure (ECCD) positively impacts the asset return of Nigerian consumer products companies that are listed on public markets, whereas environmental compliance cost disclosure (ECD) shows a positive non-significant effect on return on assets for these firms. Conversely, community development cost disclosure exhibits a nonsignificant negative effect on return on assets. The study suggests that consumer goods firms in Nigeria should prioritize environmental conservative cost disclosure (ECCD) in their financial reporting practices. The study further advises that consumer goods firms in Nigeria ought to continue adhering to environmental laws and reveal their regulations and disclose their detailed compliance costs (ECD). This ensures they meet sustainability reporting standards, ultimately enhancing financial performance.

1 29 Mar, 2024

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