ENVIRONMENTAL INFORMATION DISCLOSURES AND VALUE OF AGRO-MANUFACTURING FIRMS IN NIGERIA

IYOHA, Agbonrha-Oghoye Imas
Department of Accounting
Edo State University Uzairue, Nigeria
iyoha.agbonrha@edouniversity.edu.ng
IGBINOVIA, Ikponmwosa Michael
Department of Accounting,
Edo State University Uzairue, Nigeria
igbinovia.ikponmwosa@edouniversity.edu.ng
ABSTRACT
This study examined environmental information disclosures and value of agro-manufacturing firms listed
on the Nigerian Exchange Group (NXG). The conflicting arguments between free market capitalism and
eco-modernist theorists and the paucity of empirical evidence on the place of carbon accounting,
environmental consciousness, environmental disclosures, and firm value relying on the submissions of the
signaling and legitimacy theories necessitate the study. The study adopted an ex post facto research design.
A census of the entire five (5) agricultural firms, twelve (12) industrial goods firms, and three (3) consumer
goods firms to make a sample size of twenty (20) firms listed in the NXG from 2014 to 2020 was taken. The
panel least squares estimation technique is adopted. The result revealed that effluent and waste, and
biodiversity information disclosures exhibit positive significant impact on firm value of AgroManufacturing firms in the NXG while cost on environmental activities as well as compliance to
environmental laws information disclosures exhibit positive insignificant impact on firm value of AgroManufacturing firms in the NXG. The positive relationships are in conformity with signaling theory, i.e.,
environmental information disclosure signals firm environmental consciousness, and this tends to improve
the value of the firm in the long run. The study recommends that a legal framework for environmental
reporting in Nigeria be promulgated, as it will serve as a basis for environmental reporting practices and
upon which appropriate sanctions will be meted out on defaulting companies.
Keywords: Bio-diversity, carbon accounting, environmental information disclosure, firm value