•  
  •  
 

Keywords

Nigeria, family-owned, environmental accounting, performance, restoration cost

Abstract

This study examines the effect of environmental accounting on the performance of family-owned companies in Nigeria using restoration cost, community development costs and health & security costs as surrogates. The study used ex-post facto research design. The population of the study consisted of all 12 family-owned companies across industrial and oil & gas sectors that were quoted on the Nigerian Stock Exchange (NSE). Purposive sampling technique was used to select six (6) family-owned companies that disclosed environmental information. Data were gleaned from the annual reports of the sampled companies covering 2012-2020. The study used descriptive statistics, correlation and Ordinary Least Squared techniques for data analysis. The findings showed that restoration cost has a negative and insignificant effect on the financial performance, and community development cost has a negative and significant effect, while health safety cost has a positive and insignificant effect on financial performance. The study concludes that only health safety costs have the potential to increase the performance of family-owned companies in Nigeria. The study recommends that payment of health and safety costs should be sustained. Furthermore, stakeholders in the companies should constitute a “Trust Fund Trustees” that will handle community development costs for fairness and accountability.

Download



Share

COinS