ENVIRONMENTAL ACCOUNTING AND TAXATION AND PERFORMANCE OF MANUFACTURING COMPANIES IN NIGERIA (2014 – 2022)

Authors: Fakayode, Opeoluwa Paul & Olayemi, Oluseyanu Olamide

ABSTRACT

The argument from different quarters is premised on the fact that environmental accounting and taxation could lead to increased expenses for the companies or collapse of the companies due to higher production costs. This study therefore examined the effect of environmental accounting and taxation on the performance of manufacturing in Nigeria. Purposive sampling techniques were used to select fifteen companies from the manufacturing sector. An ex-post facto research design was employed. Secondary data used for the study was extracted from the financial reports of the selected companies. Variables used included Return on Assets (ROA) Sales Growth (SG) Environmental Costs (EC), and Environmental Liabilities (EL). Content analysis and multiple regression were used to analyze the data collected. The findings of the study revealed EC (0.0391597, p=0.017<0.05) and EL (0.0291861, p=0.033<0.05) have a positive and significant effect on the ROA of companies. Further results showed that EC ( -0.032978, p= 0.598>0.05) and EL (-0.0277371, p=0.595>0.05)  have negative and insignificant effects on the growth of companies. The study recommended that environmental accounting and taxation should be made an important inclusion in the financial reports of companies to ensure that companies engage in production activities that will not have adverse effects on the environment.

Keywords: Environmental accounting, environmental costs, environmental liabilities, environmental taxation, return on assets,

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