GREEN ACCOUNTING REPORTING AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA

ABSTRACT: This study examined green accounting disclosure and its effect on financial performance of listedmanufacturing firms in Nigeria. Particularly, the study examined the effect of green accounting disclosure onROA, ROE and share price of manufacturing firms in Nigeria. The ex-post facto research design was employed.Data from the annual reports of forty out of the sixty-six manufacturing companies listed in the Nigerian StockExchange as at 31st December 2019 for the period spanning 2010 – 2019 were used. The descriptive statisticsand the panel regression methods were employed for the data analysis. The Arellano and Bond (1991) GMMestimator which controls for potential endogeneity problem was employed to ensure robustness of theparameter. The study findings revealed that green accounting disclosure had a positive significant effect each onROA and ROE. However, a negative effect subsists between green accounting disclosure and share price ofmanufacturing firms in Nigeria. The findings recommend that manufacturing firms are encouraged to increasethe extent of their green accounting activities for ease of assessment by stakeholders for investment decisionmaking. Furthermore, the government should strictly enforce green accounting disclosure practice by ensuringthat firms that are going public should comply with this practice in line with the GRI benchmark so as to obviatethe skewed spirit of free-market individualism.

Key words: Green accounting, financial performance, Return on asset, Return on Equity, GRI.