Effects of Environmental Protection Cost on Product Price in Nigeria : Study of Brewing Industry

Okoye, Emma Ik.; Adeniyi, Segun Idowu

doi:10.12816/0037556

Cited by 2 publications

(3 citation statements)

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“…Additionally, recent research by Ikpor et al (2019) demonstrates that if not appropriately managed, environmental costs cause a reduction in profitability. Similarly, Koye and Adeniyi (2017) concede that environmental costs lessen profitability through improper pricing. It is because environmental costs need to be adequately allocated to their products.…”

Section: Resultsmentioning

confidence: 99%

Do Environmental Costs Impact Financial Sustainability? An Emerging Market’s Perspective.

Nyahuna

Doorasamy

2023

IJESSS

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The importance of properly managing environmental costs cannot be underestimated. This paper investigated the relationship between environmental costs and financial performance of 45 cement and mining listed on the Johannesburg Stock Exchange from 2014 to 2021. Financial performance is measured by return on equity whilst environmental cost is proxied by carbon management costs, recycling costs and pollution prevention costs. Control variables such as growth, leverage, size and debt ratio are used in this study. The study applied a quantitative research approach using an ex-post facto research design. The researchers adopted a panel regression analysis. The result of the study indicates a negative and significant association between environmental costs and return on equity. It was concluded that environmental costs reduce profitability in form of return of equity of the sampled companies. This study has practical implications of motivating corporate managers to proactively manage environmental costs in order to improve corporate financial performance. Additionally, it helps to practically shape environmental policies that intend to augment environmental performance.

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Section: Resultsmentioning

confidence: 99%

Do Environmental Costs Impact Financial Sustainability? An Emerging Market’s Perspective.

Nyahuna

Doorasamy

2023

IJESSS

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“…Adopting non-experimental design for 2014 data of ten randomly selected companies, the study found out that environmental and social costs significantly affect net profit margin, earnings per share and return on capital employed. (Okoye, & Adeniyi, 2017), though specifically on a disaggregated cost (environmental protection cost) varied slightly into a study of the effect of environmental protection cost on product price in Nigerian brewery industry. The study discovered that there was negative relationship between environmental regulatory cost and product pricing decision.…”

Section: Studies In Nigeriamentioning

confidence: 99%

“…In Nigeria, this study which revealed that environmental cost surrogates(waste management, community development and employee health and safety costs) have no significant effect on firm performance confirmed studies by (Adediran, et. al., 2013;Okoye, et. al., 2017); while it contradicted studies by (Ngekwe, 2008;Oti, et.…”

Section: Objective Fourmentioning

confidence: 99%

Effect of Environmental Cost on Performances of Quoted Firms in Sub-Saharan Africa, 2007-2016

2020

EJAAFR

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The study examined the effect of environmental costs on performances of quoted firms in Sub Saharan Africa. The study adopted longitudinal/panel ex-post facto research design and random sampling technique while quantitative secondary data covering 2007 to 2016 were obtained for sixty-four extractive and industrial firms quoted in the Stock Exchanges of four Sub-Sahara African countries namely South Africa, Nigeria, Ghana and Tanzania. The models for the study were estimated using Ordinary least square regression (OLS) built on panel data analysis. In the regional level analysis as well as in South Africa and Nigeria specific country analyses, the study revealed that environmental costs represented by employee health and safety, waste management and community development costs have no significant effect on return on capital employed, earnings per share and return on equity. The study showed that in Ghana, the predictor variables demonstrated significant effect on return on capital employed and return on equity while only waste management cost has significant effect on return on capital employed and return on equity in Tanzania. The implication of the preponderance of the findings, save for the aforementioned exceptions in Ghana and Tanzania, is that quoted firms in the region are yet to adequately indulge in environmental responsibility or their environmental engagements are not adequately captured and disclosed to the extent that can cause significant swings in the measures of firm performance. The implication of the exceptions found in Ghana and Tanzania is that of comparative improvement in environmental responsibilities, compliances and disclosures by quoted firms in the two countries. The study recommended among other things that firms in Sub Saharan Africa should give greater attention to environmental responsibility, cost recognition, classification and disclosures in the annual, integrated and sustainability reports.

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Effects of Environmental Protection Cost on Product Price in Nigeria : Study of Brewing Industry

Cited by 2 publications

References 0 publications

Do Environmental Costs Impact Financial Sustainability? An Emerging Market’s Perspective.

Do Environmental Costs Impact Financial Sustainability? An Emerging Market’s Perspective.

Effect of Environmental Cost on Performances of Quoted Firms in Sub-Saharan Africa, 2007-2016

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