ENVIRONMENTAL MANAGEMENT ACCOUNTING AND OPERATING PERFORMANCE OF LISTED OIL COMPANIES: A LONGITUDINAL STUDY IN AN EMERGING ECONOMY

OLAYIWOLA John A. () and ADEBISI Adedayo M. ()
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OLAYIWOLA John A.: Department of Management & Accounting, Obafemi Awolowo University, Ile-Ife, Nigeria
ADEBISI Adedayo M.: Department of Management & Accounting, Obafemi Awolowo University, Ile-Ife, Nigeria

Management of Sustainable Development, 2024, vol. 16, issue 2, 38-58

Abstract: This research examines the correlation between the implementation of EMA and the operating performance of Nigerian oil companies on the stock exchange for the year 2014-2023. The study assesses the level of implementation of the EMA practices in these companies and analyses the changes in its financial and non-financial performance measures. This study employed longitudinal and ex-post facto research designs, secondary data were collected from the annual reports and financial statements of the listed oil companies in Nigeria. Data collected were analysed using both descriptive and inferential statistics, which include panel data regression analysis to measure the significance and direction of the relationship among these variables. We employed both fixed and random effects models to determine the relationship between EMA, LEV, SIZE, and performance indicators. The results show that, although awareness exists on the role of environmental management accounting for the Nigerian oil industry, there is still limited application and implementation in corporate strategies. Further, the results show that EMA does not exert immediate significant impact of financial performance of Nigerian firms, especially in sectors like oil where traditional operations are deeply embedded. The concluded that while EMA practices are essential for long-term sustainability, their immediate financial benefits may be limited, especially in the context of the Nigerian oil industry. As the Nigerian oil sector continues to evolve, future studies could explore the longer-term effects of EMA adoption and the changing role of market forces in driving sustainability efforts.

Keywords: Financial Performance; Non-Financial Performance; Sustainability; Environmental; Accounting (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:blg:msudev:v:16:y:2024:i:2:p:38-58:n:4

DOI: 10.54989/msd-2024-0014

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