ENVIRONMENTAL DISCLOSURE PRACTICES AND FINANCIAL PERFORMANCE OF SELECTED MANUFACTURING COMPANIES IN NIGERIA
ENVIRONMENTAL DISCLOSURE PRACTICES AND FINANCIAL PERFORMANCE OF SELECTED MANUFACTURING COMPANIES IN NIGERIA

Summary/Abstract: Aim: This study examined the relationship between environmental disclosure practices and the finan-cial performance of manufacturing companies listed on the Nigerian Exchange Group. The objective wasto determine whether specific environmental initiatives, such as waste management, resource conservation,energy conservation, emission reduction, and pollution control, significantly impacted financial outcomes.The study aimed to contribute to the ongoing discourse on corporate environmental responsibility and itseconomic implications. Methods: The study adopted a quantitative research approach, utilizing second-ary panel data from 15 listed manufacturing companies over a defined period. Environmental disclosurepractices were measured across five components: waste management practices, resource conservation,energy conservation, emission reduction, and pollution control. The Levin–Lin–Chu unit root test wasused to confirm the stationarity of the data series. A Pearson correlation matrix was applied to exploreinterrelationships among the variables. The study employed panel data regression analysis with a randomeffects model (confirmed by the Breusch–Pagan Lagrange multiplier test), grounded in signaling theoryas the theoretical framework to estimate the effects of environmental practices on financial performance.Results: The results indicated that energy conservation, emission reduction, and pollution control practicessignificantly enhanced financial performance. Resource conservation showed a positive but less substan-tial impact. Conversely, waste management practices were negatively associated with financial outcomes,suggesting potential inefficiencies or cost implications. Conclusions: The study concluded that manufac-turing firms should prioritize energy conservation, emission reduction, and pollution control within theirenvironmental strategies to improve long-term financial performance and investor perception. A strategicreview of waste management practices was also recommended.

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