Environmental Cost and Economic Performance of Nigerian Shipping Lines

Omole Ilesanmi I., Adewumi Ayodeji and Ochei Ngozi Fidelia
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Omole Ilesanmi I.: Department of Accountancy, School of Business and Management Studies, The Federal Polytechnic, Ile-Oluji, Ondo State, Nigeria.
Adewumi Ayodeji: Department of Auditing and Taxation, Durban University of Technology, South Africa.
Ochei Ngozi Fidelia: Department of Business Administration and Management, School of Business and Management Studies, The Federal Polytechnic, Ile-Oluji, Ondo State, Nigeria.

International Journal of Research and Innovation in Social Science, 2023, vol. 7, issue 3, 664-676

Abstract: This study investigated relationship between environmental cost and economic performance of Nigerian shipping lines. In order to actualize this objective, the study employed expo-facto research design and purposive sampling technique was used to determined sample size of 10 registered companies out of 25 study’s population. . The research instrument used in this study is made up of primary source and secondary source. The primary sources included questionnaires, while the secondary sources include textbooks, internet, journals, published and unpublished articles and government publications. This study used both descriptive and panel estimation of regression to achieve the stated objective as well as relevant diagnostics. The correlation analysis revealed that all of the variables— CERPC, CELCP and DCCC—had correlation coefficients that were either positive or negative and less than 0.9. The Hausman test result showed that the Hausman null hypothesis of random effect model is not appropriate and to be rejected as the Hausman test is statistically significant (0.0085) at 5 per cent level of significant with chi-square value of 9.887246. The result of Pooled OLS and Random Effect showed that the t-statistics (p-value) calculated for CERPC was greater than the critical value of 5%, while Fixed Effect model regression showed that the t-statistics(p-value) calculated for CERPC was greater than the critical value of 5%, this means that cost expended by the company on environment remediation and pollution control was significant on economic performance of Nigerian shipping lines. DCCC and CELCP do not have significant effect on economic performance of Nigerian shipping lines due to their t-statistics(p-value) calculated were greater than the critical value of 5%. The study concluded that environmental cost has significant effect on economic performance of Nigerian shipping lines on the basis of CERPC, but do not on the basis of DCCC and CELCP. Therefore, it was recommended that the company should spend more on the Cost of Environmental Remediation and Pollution Control since, they have positive effect on economic performance of Nigerian shipping lines than on Cost of Environmental Laws Compliance and Penalty and Donations and Charitable Contributions Costs.

Date: 2023
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