Relationship between environmental accounting disclosures and financial performance of manufacturing firms in nigeria

This study on the environmental accounting disclosures and performance of selected manufacturing firms in Nigeria was prompted as a result of mixed, inconsistent and contradictory results from various studies carried out in this area and also because of the increasing stakeholders demand for the disclosure of the management of environmental issues in the annual reports and accounts of manufacturing firms. Thus, the study examined the relationship between environmental accounting disclosures of selected manufacturing firms and their return on assets, net profit margin and earnings per share. Correlation research design was employed in the study and time series data of 40 randomly selected quoted manufacturing firms were collected from their annual reports and analyzed using point bi-serial correlation analytical tool with the help of SPSS version 23. The findings revealed that there exists a significant and positive association between environmental accounting disclosures and earnings per share, return on assets, net profit margin, firm’s age and audit firm type. We concluded based on the findings that environmental accounting disclosures influences performance of firms and It was recommended that government and standard setters should develop a standard framework for the mandatory disclosure of corporate environmental information to ensure uniformity, consistency and comparability of environmental information, enhance performance of firms and allow stakeholders to know when these firms are environmentally responsible.