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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
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    4. 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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    Full references (including those not matched with items on IDEAS)

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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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