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Green Accounting Information and Investors’ Confidence in the Nigerian Industrial Goods Sector

Nwayen, Aniekan Ime, Eno G. Ukpong PhD, Prof. Joseph O. Udoayang, Uwem E. Uwah PhD

Abstract

This study examines green accounting information and investors’ confidence in listed industrial goods firms in Nigeria. Specifically, it investigates the relationships between environmental cost disclosure, renewable energy investment disclosure, environmental regulatory compliance disclosure, waste management disclosure and investors’ confidence. The study adopts an ex-post facto research design and relies on secondary data obtained from corporate annual reports, audited financial statements and sustainability reports. Descriptive statistics, correlation analysis and panel regression are proposed for data analysis. The illustrative regression results indicate that environmental cost disclosure (β = 0.218, p = 0.018), renewable energy investment disclosure (β = 0.276, p = 0.008) and waste management disclosure (β = 0.193, p = 0.020) have positive and statistically significant relationships with the investors’ confidence proxy. Environmental regulatory compliance disclosure has a positive but statistically insignificant relationship (β = 0.094, p = 0.282). The illustrative model has an R2 of 0.421 and an adjusted R2 of 0.397, suggesting that the explanatory variables jointly account for 42.1% of the variation in the dependent variable. The study is anchored on Information Asymmetry Theory, Stakeholder Theory and Signalling Theory. It highlights the potential relevance of transparent environmental reporting to investors’ assessment of corporate prospects and environmental responsibility. The study recommends improved disclosure of environmental costs, renewable energy investments, regulatory compliance and waste management activities. However, these statistical values are illustrative and should not be interpreted as actual empirical findings until verified using the study’s dataset.

Keywords

Green accounting informationenvironmental cost disclosurerenewable energy investmentregulatory compliancewaste managementinvestors’ confidence.

References

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