Environmental Responsiveness and Firm Value: Evidence from Nigeria

Soyemi Kenny Adedapo (), Okewale Joel Adeniyi () and Olaniyan Joshua Damilare ()
Additional contact information
Soyemi Kenny Adedapo: Department of Accounting, Faculty of Administration & Management Sciences Olabisi Onabanjo University, PMB 2002, Ago-Iwoye, Nigeria.
Okewale Joel Adeniyi: Department of Accounting, Faculty of Administration & Management Sciences Olabisi Onabanjo University, PMB 2002, Ago-Iwoye, Nigeria.
Olaniyan Joshua Damilare: Department of Accounting, Faculty of Administration & Management Sciences Olabisi Onabanjo University, PMB 2002, Ago-Iwoye, Nigeria.

Acta Universitatis Sapientiae, Economics and Business, 2021, vol. 9, issue 1, 133-155

Abstract: This paper examines the effects of environmental responsiveness on firm value in Nigeria and provides an insight into the feasibility of corporate entities engaging with the United Nations’ sustainable development agenda, without compromising their wealth creation agenda. Secondary data were gathered from annual reports and audited accounts of 83 quoted non-financial firms for three years covering the period of 2016–2018. Thereafter, a regression analysis using the Ohlson value relevant model for price valuation was done. Results of the empirical analysis confirm the positive influence of value relevance of book values, earnings per share, alongside environmental responsiveness and firm size on the firm value of Nigerian firms, while leverage is inversely related. Remarkably too, firms with higher values tend towards being environmentally responsive. Impliedly, there is an empirical evidence of reverse causality between firm value and environmental responsiveness.

Keywords: book value; eco-efficiency; equity; firm value; ISO14001; sustainable development (search for similar items in EconPapers)
JEL-codes: G19 M14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/auseb-2021-0008 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:auseab:v:9:y:2021:i:1:p:133-155:n:5

DOI: 10.2478/auseb-2021-0008

Access Statistics for this article

Acta Universitatis Sapientiae, Economics and Business is currently edited by Dávid László

More articles in Acta Universitatis Sapientiae, Economics and Business from Sciendo
Bibliographic data for series maintained by Peter Golla ().