You have no items in your shopping cart.
ABSTRACT
Conventional Accounting does not assign monetary costs to consumption of natural resources such as air, water and land fertility. To address these deficiencies, the development of Environmental Accounting became necessary. Hence, this study examines the effect of Environmental Accounting Cost on Firm performance in oil and gas companies in Nigeria. Specifically, the study investigates the effect of profit after tax, return on capital employed earning per share, firm size and Number of Shareholders on Environmental Accounting Costs.
This study employs a longitudinal research design. The population comprises of all quoted oil and gas companies in Nigerian Stock Exchange while 10 oil and gas companies longed the sample size. Data were analysed using descriptive correlation analysis, panel regression analysis and Granger Causality Test.
The Study find that earning per share, firm size and number of shareholder have positive effect on environmental accounting cost while profit after tax and return on capital employed have negative effect on environmental accounting cost. The study recommends that the environmental regulatory authority should be more committed to ensuring that environmental accounting cost components are individually and separately disclose for efficient reporting. Also oil and gas companies should comply with environmental laws such as National Environmental Standards Regulations and Enforcement Agency Act (2017) and National Oil Spill, Detection and Response Agency Act (2006) to advert the cost of fine and litigations which ordinarily could have resulted from ignoring their responsibility of proper management of environmental conservation.
