GREEN ACCOUNTING PRACTICES AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN NIGERIA

ABSTRACT Despite the growing global emphasis on environmental accountability, Nigerian manufacturing firms' slow adoption of green accounting practices hinders their ability to attract investors, comply with regulations, and improve market value. This study examined the effect of green accounting practices on the financial performance of listed manufacturing firms in Nigeria. Specifically, the study investigated the effect of environmental sustainability, waste management costs, environmental cleanup costs, and environmental remediation disclosure on market value of manufacturing firms in Nigeria. A longitudinal research design was adopted for the study. Secondary data was used which was obtained from published and annual reports of listed manufacturing firms on the Nigerian Exchange Group. The population of the study comprised of all 52 manufacturing firms listed on the Nigerian Exchange Group (NGX) for the period of 2015-2024. A purposive sampling technique was used to select a sample of 46 manufacturing firms out of the listed fifty-two (52) manufacturing firms. The study employed the panel regression estimation technique after carrying out preliminary analyses such as descriptive statistics, correlation matrix, and normality test. The study also conducted diagnostic checks including tests for multicollinearity and heteroskedasticity to ensure the robustness of the results. The panel regression models were estimated using pooled OLS and robust regression techniques, and the results were subsequently used to test the formulated hypotheses. The results from study revealed that environmental sustainability (ES) [coef. = 3.776, p-value 0.000) has a significant positive effect on the market value (MV) of listed manufacturing firms in Nigeria during the period under study; waste management costs (WMC) [coef. = -1.574, p-value 0.174) has a negative but statistically insignificant effect on the market value (MV) of the sampled firms; environmental compliance costs (ECC) [coef. = 4.111, p-value 0.003) has a significant positive effect on the market value (MV) of listed manufacturing firms in Nigeria; environmental remediation disclosure (ERD) [coef. = -3.384, p-value 0.000) has a significant negative effect on the market value (MV) of listed manufacturing firms. The study concluded that investments in environmental sustainability and compliance have a positive impact on firm value, while the disclosure of remediation efforts may negatively impact it, and waste management costs have no significant immediate effect. It is therefore recommended that corporate managers and directors should prioritize investment in sustainable production processes, energy efficiency, and eco-friendly technologies, as these initiatives have been shown to enhance financial performance. Managers should also adopt cost-efficient and innovative waste recycling technologies that reduce expenses while maintaining compliance. Furthermore, policy makers should introduce supportive schemes such as tax rebates or subsidies for firms that invest in advanced waste management systems, as this can help offset potential short-term financial pressures. Managers should therefore view compliance-related costs not as unnecessary burdens but as strategic investments that safeguard reputation, minimize regulatory sanctions, and build trust among stakeholders.