Firm Attributes and Environmental Accounting Disclosure of Listed Firms in High and Low Environmentally Sensitive Industries in Nigeria
The study examines firm attributes and environmental accounting disclosure (EnvDic) of companies in high and low environmentally sensitive industries (ESI) listed on the Nigerian Exchange Group (NGX). Longitudinal research design is adopted, using twenty (20) companies each in the manufacturing and financial sectors, for a time frame of five years (2016 to 2020). The study has three sub-samples: high ESI; low ESI; and a full (a combination of high ESI and low ESI samples). Secondary data sourced from the annual reports were analysed using an independent sample t-test and panel estimation technique. Low ESI companies have higher EnvDisc than high ESI companies, and the difference is significant. Profit exhibits an inverse significant influence on EnvDisc in the full and low ESI samples at 10% and 5% respectively, while a positive insignificant impact in the high ESI sample. Leverage has a positive but insignificant impact in the high ESI, low ESI, and full ESI samples. At 5%, firm size has a positive significant impact in the full and high ESI samples but a positive insignificant impact in the low ESI sample. The results conforms to legitimacy and stakeholder theories. The study concludes that EnvDisc performance is better in low ESI companies than high ESI companies. A mandatory reporting framework on environmental activities should be put in place, this will provide the legal basis for engaging defaulting companies. Keywords: Environmental sensitivity, Environmental accounting disclosure, GRI, Firm attributes