Social and Environmental Accounting and Performance of Banking Companies Quoted in Nigeria

Abstract

Since the 2007-2008 global financial crisis, which affected many large corporations, the performance of companies has come under scrutiny, and the corporate world has been forced to restructure its relationship with its stakeholders. For many years, stakeholders have been clamoring for greater accountability, and transparency from the management of companies on social and environmental matters. This paper studied the relationship between social and environmental accounting and performance of banking companies quoted in Nigeria, using ex-post-facto research design, while the total enumeration sampling technique was used in the selection of the 13 banking companies for a period of 10 years from 2011 -2020. Descriptive and inferential statistics were used to analyze the data. The study's findings demonstrated that social and environmental accounting had a considerable impact on the return on capital employed (ROCE) of Nigerian banking organizations (Adj R 2 = 0.0367, F-Stat = 14.34, p = 0.0008) While the effect of social and environmental accounting disclosure on return on capital employed (ROCE) of Nigerian banking enterprises is moderated by firm size (∆Adj R 2 = 0.1391, F-Stat = 7.95, p = 0.0001). According to the findings, social and environmental accounting has a substantial impact on the performance of Nigerian financial organizations. The study recommended that policies be made for the mandatory disclosure of social and environmental accounting information in the financial statement of firms.

Environmental Accounting Disclosures and Financial Performance of Listed Oil and Gas Companies in Nigeria: An Application of Driscoll-Kraay Standard Errors Approach

“…Following several studies on the link between environmental accounting disclosures and financial performance [1,5,8,9,19,20], the functional model is specified as:…”

“…𝒊𝒊 = 𝟐𝟐𝟎𝟎𝟏𝟏𝟏𝟏 − 𝟐𝟐𝟎𝟎𝟐𝟐𝟐𝟐 while 𝒊𝒊 = 𝟏𝟏, … , 𝟖𝟖. Tables 1 and 2 present the variable definition/measurements and the list of selected eight (8) oil & gas companies listed on the NGX as of 17th January 2022 respectively. Oil and Gas Refining and Marketing Oil and Gas…”

“…Numerous elements, which may be divided into micro and macro factors, influence how well organizations operate financially. Additionally, they exert a substantial influence on the valuation of a company's financial performance [8]. Financial performance is typically measured by return on assets, earnings per share, return on equity, and net profit margin.…”

“…Financial performance is typically measured by return on assets, earnings per share, return on equity, and net profit margin. Factors such as liquidity, ownership, age and size of the firm, leverage, productivity, solvency, and restrictions in the available resources are affected by micro factors, while macro factors encompass exogenous factors that exert an influence on the financial state of companies [8]. An imbalance in business, the economy, and the world might result from financial crises [7].…”

“…Corporate social responsibility and financial performance were shown to have no relationship, according to the study. [5,6,8,20] were among the papers that found that social and environmental accounting significantly affected the profitability of financial institutions. According to research by [20], listed Nigerian family-owned businesses' financial performance suffered due to environmental accounting.…”