Green accounting practices and financial performance of natural resources companies in Nigeria (2015 - 2024)
Keywords:
Green Accounting, Environmental Cost, Earnings Per Share, Return on EquityAbstract
The study examined Green Accounting practices and the Financial Performance of Natural Resources in Nigeria. Specifically, the study ascertained the effect of Environmental cost on the following financial performance indices of quoted natural resources companies in Nigeria; Earnings per Share (EPS) and Return on Equity (ROE). The research was conducted using the ex-post facto research design. Secondary data were collected from the annual reports of four natural resources companies quoted on the floor of the Nigeria Exchange Group (NGX) between 2015 to 2024. The population of the study remained the sample because they are few and known. Using Unit root tests, and Panel Least Squares (PLS) regression analysis to analyze the data, the result revealed a negative relationship between environmental cost and earnings per share with β = –0.706823; p-value of 0.0377 for EPS, indicating that green accounting practices may impose short-term financial burden on natural resources companies. The study also showed that environmental cost had a positive but non-significant effect on ROE at a β = 0.019760 and p-value of 0.9169. The study therefore concludes by suggesting that management of quoted natural resources companies should adopt cost-efficient environmental management practices that minimize environmental expenses without compromising sustainability objectives. The study recommended that firms should balance environmental expenditures with revenue-generating and operational efficiency strategies in order to protect shareholders’ returns and integrate green accounting practices with effective investment and corporate governance policies to improve shareholders’ value.
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Copyright (c) 2026 EZUMA Chidimma Odilia, OFOEGBU Grace Nyereugwu, NNAMANI Ugochukwu Johnson, EZUMA Ogonna Donatus
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