Environmental Accounting Practices and Firm Profitability: A Granger Causality Analysis of Nigerian Manufacturing Firms

Ibikunle Jide

ผู้แต่ง

Ibikunle Jide University of Abuja, Business School, Gwagwalada- Abuja, Federal Capital, Nigeria

คำสำคัญ:

Environmental Accounting, Profitability, Granger Causality, Sustainability Reporting

บทคัดย่อ

This study examines the temporal relationship between environmental accounting practices and the profitability of listed manufacturing firms in Nigeria over the period 2016–2024. Using balanced panel data from 12 firms, the study employs descriptive analysis, panel regression techniques, panel cointegration tests, and Granger causality analysis to explore whether environmental accounting practices are systematically associated with firm performance over time. Environmental accounting practices are proxied by waste management expenditure, pollution control investment, environmental reporting, carbon accounting disclosure, and environmental training, while profitability is measured using return on assets (ROA), return on equity (ROE), and Tobin’s Q. The empirical results indicate that environmental accounting practices are positively and statistically associated with firm profitability across alternative performance measures. Granger causality tests suggest a unidirectional temporal relationship running from environmental accounting practices to profitability, indicating that past environmental practices contain information useful for predicting future financial performance. Robustness checks confirm the stability of the results across alternative specifications. The findings suggest that environmental accounting practices are not merely compliance-oriented activities but are associated with favourable financial outcomes over time. However, the results are interpreted as evidence of predictive and temporal relationships rather than definitive structural causation. The study contributes to the emerging literature on sustainability accounting in developing economies and provides policy-relevant insights for corporate managers and regulators.

เอกสารอ้างอิง

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