International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue IX, September 2022|ISSN 2454-6186

Corporate Characteristics and Environmental Reporting in Nigeria Manufacturing Sector

Chukwuebuka Victor Onovo¹, Prof. Oliver Ikechukwu Inyiama², Prof. Chike Nwoha^3
1Department of Accountancy, Enugu State University of Science and Technology, Enugu, Nigeria
²Department of Accounting, Covenant University Ota, Ogun State, Nigeria.
³Department of Accountancy, Enugu State University of Science and Technology, Enugu, Nigeria

Abstract: This study investigates the effect of Corporate Characteristics on Environmental Reporting of Beverage companies in Nigeria. Using company’s specific Corporate Characteristics. Firm Age (FA), Firm Size (FS) and Return on Assets (ROA) were used to proxy Corporate Characteristics, while Employee Health & Safety Cost Disclosures (EHSCD), Waste Management & Remediation Cost Disclosure (WMRCD) and Donations & Charity Contribution Cost Disclosures (DCCCD) served as proxies for the dependent variable – financial performance. The study selected all 3 companies out of four (4) quoted Beverage companies in Nigerian Stock Exchange as at 2021. Ex Post Facto research design was adopted and the secondary data were collected from annual reports of sampled firms from 2010 to 2019 through content analysis. The data were analyzed with descriptive statistics and regression analysis. Eview version 8 was applied in testing the hypotheses. The study showed that Sustainable Firm Age has a significant positive effect on EHSCD with a p – value of 0.0000 and a t – statistical value of 5.1416, while Firm Size has a significant positive effect on WMRCD with a p – value of 0.0000 and a t – statistical value of 5.1964. The study also reveal that Return on Assets has no significant positive effect on DCCCD with a p – value of 0.1176 and a t – statistical value of 1.6185. Based on these findings, the study recommended that companies should carter for the wellbeing of its employees, adopt practicable waste management plans, insure the environment against degradation, as well make valuable contributions to the society.

Keywords: Environmental Reporting, Sustainability Reporting, Global Reporting Initiative (GRI), Corporate Characteristics.

I. INTRODUCTION

1.1 Background of the study

Globally, the harmful effect of industrialization has attracted the interest of different stakeholder groups in the recent past (Ala, 2019). These economic developmental impacts and negative industrial footprints have heightened the concern of national, regional and international bodies including companies’ wide stakeholder groups about the need to protect the world’s ecosystem (Akras, 2014). Companies face increased pressure from these interested parties, especially state authorities and International donors, to publish sustainability reports (Chaklader and Gulati 2015). For this reason, it has become imperative for the environmental activities of companies to be disclosed in a report form. (Manini and Abdillahi, 2019). As a matter of public interest it has become critical for companies to report their efforts and contributions towards the protection and growth of the

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