Corporate Environmental Disclosures and Market Value of Quoted Companies in Nigeria.
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Date
2014
Authors
Akinlo, O.O.
Iredele, O.O.
Journal Title
Journal ISSN
Volume Title
Publisher
The Academy of Business and Retail Management
Abstract
This paper examined the impact of environmental information disclosures on Market Value of fifty
quoted companies in Nigeria for the period 2003-2011. The aggregate and individual impact of
Corporate Environmental Disclosure (CED) were regressed on Market Value (Tobin’s Q) while Firm
size was factored in as an extraneous variable. The result of the descriptive analysis showed that the mean and median values are within the minimum values and the standard deviation is low which indicated that the deviation of the actual data from their mean value is very low. Our empirical
analysis revealed that CED has a significant positive impact on Market Value when considered in
aggregate. In turn, considering the impact of each of the variables, Energy policy (ENP), Impact on
Biodiversity (BIO), Award Received for installing Environmental Management System (AWR) have
an insignificant positive impact on Market Value with the exception of Environmental Research and
Development cost (ERD). Also, Environmental pollution and control policy (EPC), Waste
Management Cost (WSM), and Cost of compliance with environmental Laws (CEL) have a negative
impact on Market Value. The study recommends that business should take caution in areas where
environmental activities impacts negatively on the Value of the firm and also invest in areas that
enhance value for the firm
Description
Environmental disclosure
Keywords
Market Value , Energy policy (ENP) , environmental information
Citation
Akinlo O. O. & Iredele O.O. (2014): Corporate Environmental Disclosures and Market Value of Quoted Companies in Nigeria. International Trade & Academic Research Conference (ITARC), 3-4th November 2014 UK. The Business & Management Review, Vol 5, No. 3, pp 171-184.