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Carbon Disclosure, Board Climate Governance and Financial Performance of Listed Manufacturing Firms in Nigeria

Author

Listed:
  • Isibor Areghan Akhanolu

    (Department of Finance, Covenant University, Nigeria,)

  • Ehikioya Benjamin

    (Department of Finance, Covenant University, Nigeria)

  • Mercy Adebayo

    (Department of Sociology, Covenant University, Nigeria.)

  • Awogbenja Bukola Bolanle

    (Department of Finance, Covenant University, Nigeria,)

  • Adedoyin Bunmi-Alo

    (Department of Finance, Covenant University, Nigeria,)

Abstract

This study examined the challenges of carbon disclosure and its impact on the performance of quoted manufacturing firms in Nigeria. Using equity return (ROE) as the dependent variable and carbon performance (disclosure), board response, board climate incentives, and board environmental committee as the independent variables, the study used panel data analysis to analyze the secondary data gathered from 2014 till 2020. The Hausman test suggested the usage of the fixed effect regression. Findings from the regression result showed that all the independent variables of carbon performance (disclosure), board response, board climate incentives, and board environmental committee positively and significantly impact ROE. The study therefore recommended amongst others that firms should always disclose their carbon disclosure data on their annual data so as to assist both the board and the regulatory authorities in managing carbon emission.

Suggested Citation

  • Isibor Areghan Akhanolu & Ehikioya Benjamin & Mercy Adebayo & Awogbenja Bukola Bolanle & Adedoyin Bunmi-Alo, 2023. "Carbon Disclosure, Board Climate Governance and Financial Performance of Listed Manufacturing Firms in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 187-193, July.
    • Handle: RePEc:eco:journ2:2023-04-21
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    References listed on IDEAS

    as
    1. Chika Saka & Tomoki Oshika, 2014. "Disclosure effects, carbon emissions and corporate value," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 5(1), pages 22-45, February.
    2. Bo Bae Choi & Doowon Lee & Jim Psaros, 2013. "An analysis of Australian company carbon emission disclosures," Pacific Accounting Review, Emerald Group Publishing Limited, vol. 25(1), pages 58-79, April.
    3. Chika Saka & Tomoki Oshika, 2014. "Disclosure effects, carbon emissions and corporate value," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 5(1), pages 22-45, February.
    4. Yu He & Qingliang Tang & Kaitian Wang, 2016. "Carbon performance versus financial performance," China Journal of Accounting Studies, Taylor & Francis Journals, vol. 4(4), pages 357-378, October.
    5. Grace N. Ofoegbu & Ndubuisi Odoemelam & Regina G. Okafor, 2018. "Corporate board characteristics and environmental disclosure quantity: Evidence from South Africa (integrated reporting) and Nigeria (traditional reporting)," Cogent Business & Management, Taylor & Francis Journals, vol. 5(1), pages 1551510-155, January.
    6. Healy, Paul M. & Palepu, Krishna G., 2001. "Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 405-440, September.
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    Cited by:

    1. Nguyen Vinh Khuong & Vu Tran Trong Tai & Nguyen Thi Phuong Thao & Pham Minh Tuan & Tran Tuan Dung & Vo Tuong Khanh, 2024. "Corporate governance and corporate carbon disclosures: The moderating role of earnings management," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4596-4611, September.

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    More about this item

    Keywords

    Carbon Disclosure; Board Climate Incentives; Return on Equity; Panel data Analysis; Board Environmental Committee;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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