Environmental Cost and Financial Performance of Listed Manufacturing Firms in Nigeria

Abstract

The purpose of this research was to determine whether there was a relationship between environmental costs and the performance of publicly listed Nigerian manufacturing companies. The research goals were accomplished by focusing on the connections between waste management expenses and the bottom lines of Nigeria's publicly traded manufacturers and suppliers. The research looked at ten (10) of the publicly traded food manufacturing companies in Nigeria from 2012 to 2021. The research relied on information gathered from other secondary sources. Statistical Packages for the Social Sciences (SPSS) and E-views were used to examine the data collected from the yearly reports.The degree of relationship among the variables was analyzed using Panel OLS. The research also selected between the random effect and fixed effect regression analyses using the Hausman Test, the findings of this research show a favorable correlation between environmental cost and the success of listed manufacturing enterprises in Nigeria. As a result, the aforementioned findings have a 5% significance threshold, indicating that environmental cost has a considerable impact on Nigerian listed manufacturing enterprises' performance. The following recommendations were given according to the findings of this research; when businesses fail to run their operations in an ecologically friendly manner; the government should apply high tariffs and sanction them severely, there should be a thorough review and, if necessary, a redesign of environmental policy, firms should look for ways to improve their corporate social responsibility (CSR).