Effect of Environmental Management Accounting Practices and Reporting on Organisational Performance

Abstract

The objective of this study was to examine the effect of environmental management accounting practices on organisational performance of consumer goods firms in Nigeria. The study specifically examined the effect of environment management accounting practices on return on asset and return on equity. The study also examined the level of environmental management accounting reporting among consumer goods firms in Nigeria. The study adopted the ex-post facto research design; as the goal was not to manipulate any variable but rather to establish effect. The population comprised listed consumer goods firms and the sample restricted to a purposive sample of ten (10) firms whose annual reports were accessible for the period of 16 years from 2007-2022 which was the time scope of this study. The data were analysed using ordinary least square regression. The results showed that environmental management accounting practices has a significant effect on return on asset and a non- significant effect on return on equity. The study also found a significant difference on environmental management accounting practices reporting among consumer goods firms in Nigeria. Based on these findings, the study recommended among others that Indigenous and multinational consumer goods firms should ensure that strict policies as regards environmental accounting are adhered to, in order to enhance stable organizational performance.