Impact of Corporate Environmental Responsibilities on Financial Performance

Olusola James Oladejo ()
Additional contact information
Olusola James Oladejo: Department of Management & Accounting Faculty of Management & Social Sciences, Postal: Lead City University, Ibadan, Nigeria,, https://www.afarng.org/Volume3Issue1June2023.php

Multidisciplinary Journal of Social Sciences, 2023, vol. 3, issue 1, 113-134

Abstract: This research investigates the nexus between corporate environmental responsibilities and financial performance within the oil, gas, mineral, and metal mining sector. Aiteo Groups and Sahara Groups are utilized as case studies to probe the influence of environmental policies on financial performance. Employing theoretical frameworks and financial metrics such as return on equity, return on assets, and stock market performance, the study aims to elucidate the impact of environmental responsibilities on financial outcomes. The results reveal a nuanced relationship between the financial performance of Aiteo Group and Sahara Group and their commitment to corporate environmental responsibility. The results showed that managers' environmental a􀄴itude is a good predictor of corporate reputation, with R squared and adjusted R squared of 0.519 and 0.489 respectively and a significant linear relationship at the 1% level. While a positive correlation is identified between financial performance and robust environmental practices, there is evidence that short-term financial performance may be negatively impacted by environmental activities. Environmental, social, and governance (ESG) factors should be integrated into investment choices, as these studies highlight. These findings have consequences for managers, investors, and politicians. Moreover, the study uncovers a noteworthy correlation between corporate reputation and environmental a􀄴itudes among managers in the extractive industries.

Keywords: Corporate environment; Environmental responsibilities; Stakeholders; Financial performance (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.afarng.org/MJSS%20Volume%203,%20Issue% ... e%202023_122-143.pdf Full text (application/pdf)

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:ris:amjoss:0006

Access Statistics for this article

Multidisciplinary Journal of Social Sciences is currently edited by Muhammad Akaro Mainoma, Godwin Emmanuel Oyedokun, Tankiso Moloi, Suleiman A. S. Aruwa and Aderemi Kabiru Adeyemo

More articles in Multidisciplinary Journal of Social Sciences from Association of Forensic Accounting Researchers (AFAR) Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Akanbi ().