The study
investigates the effect of environmental cost on firm value and financial performance
of listed companies in Nigeria (2012-2018. The study is necessitated in order
to resolve conflicting issues on whether the environmental costs significantly
impact on the firm value and financial performance. The proxies for
environmental costs are Research and Development Cost, Community Development
Cost, and Employee Health and Safety Cost. The firm value proxies
are NAPS, EPS and PER and financial performance
proxies are NPM, ROE and ROA. The study uses secondary data sourced from the
selected firms’ annual reports and accounts. The researchers adopt descriptive
and co relational research design. Secondary data collected were analyzed using
panel data regression analysis and e-view 9 statistical package. The result on
the twenty five (25) firms purposely selected
revealed, among other things, that environmental cost has significant
impact on firms value NAPS, while there are no significant impact of environmental
cost on EPS and PER of listed firms in Nigeria. It also
revealed significant impact of
environmental costs on financial performance (NPM, ROA), except on ROE Based on
the above results, the study recommends among other things, that Board of Directors of listed firms in Nigeria
should emphasized on RDC projects by establishing R&D unit, should take
EHSC serious through continuous staff training for better performance and there should be collaboration between host
communities and listed firms with respect to training and offering scholarships
to the youths. It also recommended that Directors of listed firms should
request for tax incentive if undertaken laudable projects like construction of
roads for the host community. It is suggested that if the above recommendations are
taken into consideration, it will go a long way in exposing firms on
environmental costs projects that impact on their value and financial
performance. Also, it will educate the stakeholders on the expectation from the
firms around them . .
MICHAEL, U (2023). Effect Of Environmental Cost On Firm Value And Financial Performance Of Listed Firms In Nigeria. Repository.mouau.edu.ng: Retrieved Sep 08, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-environmental-cost-on-firm-value-and-financial-performance-of-listed-firms-in-nigeria-7-2
UNIVERSITY, MICHAEL. "Effect Of Environmental Cost On Firm Value And Financial Performance Of Listed Firms In Nigeria" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 04 Jul. 2023, https://repository.mouau.edu.ng/work/view/effect-of-environmental-cost-on-firm-value-and-financial-performance-of-listed-firms-in-nigeria-7-2. Accessed 08 Sep. 2024.
UNIVERSITY, MICHAEL. "Effect Of Environmental Cost On Firm Value And Financial Performance Of Listed Firms In Nigeria". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 04 Jul. 2023. Web. 08 Sep. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-environmental-cost-on-firm-value-and-financial-performance-of-listed-firms-in-nigeria-7-2 >.
UNIVERSITY, MICHAEL. "Effect Of Environmental Cost On Firm Value And Financial Performance Of Listed Firms In Nigeria" Repository.mouau.edu.ng (2023). Accessed 08 Sep. 2024. https://repository.mouau.edu.ng/work/view/effect-of-environmental-cost-on-firm-value-and-financial-performance-of-listed-firms-in-nigeria-7-2