Environmental Accounting Information Disclosure and Shareholders Investment Decision in Listed Consumer Goods Manufacturing Firms in Nigeria

Adequate disclosure of information enhances investors’ confidence and decision making. The attainment of optimal investment decision making has remained one of the major goals of every shareholder and one of such shareholders’ investment decision is environmental accounting disclosure. Decision of shareholders to invest in consumer goods sector has negative effect on the growth of the sector. Studies have shown that not many listed consumer goods manufacturing firms have integrated environmental accounting information disclosure in their operations. Consequently, this study investigated the effect of environmental accounting information disclosure on shareholders’ investment decision using earnings per share in listed consumer firms in Nigeria. The E x-post facto research design was adopted in the study over the period 2012 to 2021. The population and sample size of the study was 21 and 16 respectively and purposive sampling technique was adopted. Based on the Global Reporting Index (GRI) 2013 criteria, data were gathered from the annual reports of the sampled firms through secondary method of data collection and multiple regression technique of data analysis was used for analysis. The findings showed that there is a positive and significant effect of community development disclosure and employee health and safety disclosure on shareholders’ investment decision making in Nigeria (Adj R2=0,091, F=5.945, p=0.001). The study concluded that environmental accounting disclosure influenced shareholders’ investment decision in listed consumer goods manufacturing firms in Nigeria. The study recommended among others, that management of listed consumer goods manufacturing firms should continue to increase community development disclosure and employee health and safety disclosure in order to boost earnings per share which will translate to increased shareholders’ investment decision-making because rational investors invest based on informed decision.