Egedegu, Ezonfade T. and Ombu, Ebipuado and Etale, Lyndon M. (2024) Environmental Accounting and Financial Performance of Conoil Plc in Nigeria. European Journal of Accounting, Auditing and Finance Research, 12 (4). pp. 16-32. ISSN 2053-4086(Print), 2053-4094(Online)
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Abstract
This study investigated the relationship between environmental accounting and financial performance of Conoil. The ex-post facto research design was employed in this case study of the sampled oil gas giant in Nigeria due to its comprehensive disclosure of environmental expenditures in its annual reports. The study utilized secondary data obtained from annual reports and accounts, downloads from Nigerian Exchange Group (NXG), and the company websites covering the period 2008 to 2022. The study employed descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) regression using Eview9 econometric software for data analysis. The correlation analysis result indicates that environmental restoration costs (ERC) are negatively correlated with profit after tax (PAT) and return on assets (ROA), while a positive correlation exists between PAT and ROA, providing insights into Conoil Plc's financial and environmental performance dynamics. The regression analyses reveal that while environmental restoration costs have a significant negative impact on return on assets (ROA), neither ERC nor health, safety, and environmental expenses (HSE) significantly influence profit after tax (PAT), indicating the nuanced relationship between environmental accounting metrics and financial performance in Conoil Plc's operations. The research additionally recommended that the corporation should regularly carry out environmental audits to evaluate adherence to environmental rules and pinpoint opportunities for enhancing environmental performance. The company should allocate resources towards renewable energy projects to reduce reliance on fossil fuels, mitigate environmental impact, and enhance long-term financial sustainability.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Depositing User: | Professor Mark T. Owen |
| Date Deposited: | 18 Mar 2024 14:07 |
| Last Modified: | 18 Mar 2024 14:07 |
| URI: | https://tudr.org/id/eprint/2799 |
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