Environmental Responsibility Accounting Practices Disclosure and Performance of Quoted Manufacturing Firms in Nigeria

This study examined the relationship between environmental responsibility accounting practices
disclosure and performance of quoted manufacturing firms in Nigeria. The study adopted
environmental responsibility accounting practices disclosure (ERAP) based on the Global Reporting
Initiative (GRI) Reporting Guidelines as the dependent variable, while return on total assets (ROTA)
and assets size (SIZE) were used to represent firm performance and the independent variables. The
study which was anchored on the stakeholders’ theory used secondary data obtained from the annual
reports of 73 manufacturing companies quoted on the floor of the Nigeria Stock Exchange for the
years 2013- 2017. The ordinary least square (OLS) regression method was used as the basic
technique of data analysis. Findings of the study revealed the existence of a significant positive
relationship between firm performance and environmental responsibility accounting practices
disclosure in the manufacturing sector of Nigeria. However, the findings of the study also indicated
that environmental responsibility accounting practices disclosure in Nigeria is still developing and that
manufacturing sector organizations report very little information about the impact of their operations
on the environment. The study recommended, amongst others, that the relevant authorities and
regulatory bodies in the country formulate statutory environmental friendly standards requirements for
manufacturing sector organizations to comply with in order to facilitate environmental responsibility
accounting practices disclosure.