Renewable and Non-Renewable Material Usage and Financial Performance of Listed Industrial Goods Firms in Nigeria
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 07
Abstract
This study examines the effect of renewable and non-renewable material usage on the financial performance of industrial goods firms in Nigeria. Renewable and now-renewable materials usage included energy consumption while firms’ financial performance was measured by return on assets (ROA), return on equity (ROE) and earnings per share (EPS). Data were sourced from the annual reports and sustainability reports of the selected industrial goods firms for periods of 2011 to 2020. Data for renewable and non-renewable material usage (RNMU) were obtained through a content analysis approach while data for ROA and ROE were computed with the accounting figures derived from the firms’ annual reports. Panel Regression analysis was employed in analyzing the data collected. Results from the analysis revealed that RNMU exerted negative but insignificant effect on ROA, ROE and EPS. The implication of the findings is that the level of environmental information practices and disclosures of industrial goods firms in Nigeria, in terms of renewable and non-renewable materials usage is poor; and has not significantly supported the firms’ performance. The study recommends among other things that corporate firms in general and industrial good firms in particular should take the issue of environmental information disclosures serious, so as to enhance the confidence of the public on the operations of the firms, which will consequently translate to better performance of the firms; and that the legislative arm of the government should tighten the legislation on environmental information disclosures of corporate entities in Nigeria by making it compulsory with specific indices.
Authors and Affiliations
Anuolam, M. O, Ike R, C
Keywords
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- EP ID EP727206
- DOI 10.47191/jefms/v6-i7-13
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