Green Accounting Practices and Investors’ Confidence of Industrial Goods Firm in Nigeria

This study examined the effect of green accounting practices on investors’ confidence in listed industrial goods firms in Nigeria from 2010 to 2024. Tobin’s Q was used as a proxy for investors’ confidence, while green accounting practices were measured using environmental remediation cost, environmental training cost, pollution control cost, renewable energy investment cost, environmental regulatory compliance cost, waste recycling disclosure, and effluent disclosure. Anchored on Stakeholder Theory, Legitimacy Theory, and Signaling Theory, the study adopted an ex-post facto research design using data from annual reports of 11 sampled firms. Hierarchical regression analysis based on pooled OLS was employed for estimation.The results revealed that environmental remediation cost, environmental training cost, renewable energy investment cost, environmental regulatory compliance cost, and waste recycling disclosure have positive and statistically significant effects on investors’ confidence. However, pollution control cost and effluent disclosure were not statistically significant. The model explained 37.9% of the variation in Tobin’s Q, indicating moderate explanatory power. The study concluded that green accounting practices enhance investors’ confidence in Nigerian industrial goods firms. It recommended that firms integrate environmental sustainability into core strategies and improve disclosure practices to strengthen investor trust and market valuation.

Green accounting practices; investors’ confidence; Tobin’s Q; environmental disclosure

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