VOlUME 01 ISSUE 01 APRIL 2022
1Etim Osim Etim, 2Idorenyin Henry Effiong, 3Nsima Johnson Umoffong
1,2,3Department of Accounting Faculty of Business Administration University of Uyo, Nigeria
ABSTRACT
Reporting environmental/natural capital and its effect on corporate profitability is a contemporary global corporate reporting issue following emphasis on green economy and reporting framework. This study was carried out to investigate the effect of environmental/natural capital reporting on profitability of manufacturing companies in Nigeria. Twenty three (23) firms engaged in industrial and natural resources processing were selected for the study. Ex-post facto research design was adopted in the study involving generation of data from the annual reports of these firms using content analysis checklist. The study period was from 2009 to 2018. The environmental/natural capital index (scores) were generated using 7 items in line with International Initiative on Integrated Reporting Council (IIRC). Data obtained were analysed using descriptive and simple linear regression of the ordinary least squares (OLS) technique. The profitability of manufacturing firms was proxy by Return on Assets (ROA). Results revealed environmental/natural capital reporting (ER) have significant negative effect on ROA; most of the studied companies have not engaged in the reporting of environmental/natural capital with an average reporting index of less than 5%. The regression coefficient were (β = 0.168, SE = 0.598, t-cal = -2.222, p-value = 0.027, p-< 0.05). it was concluded and recommended in line with global best practices, regulatory agencies in Nigeria issue reporting standards that would make reporting of all sustainable capital items and particularly environment/natural capital mandatory.
KEYWORDS:Return on Assets (ROA), Environmental/Natural capital, Sustainable Reporting.
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VOlUME 01 ISSUE 01 APRIL 2022
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