BUSINESS AND FINANCE JOURNAL

ENVIRONMENTAL MANAGEMENT ACCOUNTING AND PERFORMANCE OF LISTED CONSUMER GOODS MANUFACTURING COMPANIES IN NIGERIA

FAGBEMI, OLUWAREMILEKUN DEBORAH-ALABI, SILVIA NWAKAEGO ONYEKACHI

May 11, 2026

Citation

BUSINESS AND FINANCE JOURNAL , Vol. 17 (2) (2026) , pp. 74-97

Details

ISSN: 988-47876
Published: May 11, 2026
Status: Published

Abstract

This study explores the effect of environmental management accounting (EMA) on the financial
performance of 17 listed consumer goods companies in Nigeria from 2021 – 2024. The study utilized
environmental management accounting ratings, return on assets (ROA) and earnings per share (EPS)
whereas firm size, age and leverage were included as control variables. The fixed-effect panel regression
with Driscoll–Kraay standard errors was employed, supported by robustness checks using bootstrapping
and PCSE estimators. The findings suggested that EMA has a significant negative effect on ROA and EPS,
implying that environmental investments may initially reduce profitability and shareholder earnings due
to compliance costs and implementation challenges. Due to the outcome of the robustness checks, the
study concluded that EMA’s impact on financial performance of Nigeria’s consumer goods sector is
weak, inconsistent, and highly sensitive to model specification. It was therefore recommended that
implementation of EMA by consumer goods companies should done strategically in order to minimize
the financial disadvantage that may occur in the short-term.