Environmental Cost Accounting and Firm Value in Nigeria

Nigeria's atmospheric and social environments have long suffered from industrial degradation caused by firms seeking to enhance their market value. This book investigates how environmental cost accounting influences the firm value of listed multinational companies in Nigeria. Using ex-post facto and longitudinal research designs, the study analyzes data from 50 multinational firms listed on the Nigerian Exchange Group between 2008 and 2022. Employing descriptive statistics and panel regression analysis, the findings reveal that environmental prevention, internal failure, and external failure costs have a significant positive relationship with firm value, while detection cost shows a positive but insignificant effect. The study concludes that environmental cost accounting plays a crucial role in enhancing corporate value. It urges multinational firms to embrace environmental accounting practices as strategic tools for promoting sustainability, responsibility, and alignment with global best practices.

Autorentext
Solanke Festus Taiwo, PhD, is a lecturer in the Department of Accounting, Federal University Oye-Ekiti, Ekiti State, Nigeria, and an Associate Chartered Accountant of Nigeria. Igbekoyi Esther Olusola, PhD, is a lecturer in the Department of Accounting, Adekunle Ajasin University, Ondo State, and a Fellow Chartered Accountant of Nigeria.