Sanyaolu Oluwafemi; Adesanmi David; Bello Yetunde; Erin Olayinka; A Ajetunmobi; Ilogho Simon
Volume 5, Issue 9 , September 2018, , Pages 715-737
Abstract
This study examines the impact of environmental cost on the financial performance of listed manufacturing firms in Nigeria from 2008 to 2016. The relationship between environmental cost and financial performance of manufacturing firms in Nigeria was tested using a sample of 126 firm-year observations ...
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This study examines the impact of environmental cost on the financial performance of listed manufacturing firms in Nigeria from 2008 to 2016. The relationship between environmental cost and financial performance of manufacturing firms in Nigeria was tested using a sample of 126 firm-year observations covering 14 manufacturing firms in the period from 2008 to 2016. The data extracted were analyzed using trend analysis graphs and panel least square method of regression. The study document a positive and significant relationship between Return on Equity (ROE), employee benefit and staff training. The authors also found a negative and insignificant relationship between Return on Equity (ROE) and donations. The result suggests investment in environmental cost indicates a good return in terms of financial performance. This finding will help eliminate the bias that investment in environmental cost is detrimental to the performance of companies in Nigeria. In the light of the empirical findings, manufacturing firms will gain a better understanding of the status and importance of environmental investment and that environmental investment is not necessary implies decline in financial performance. This implies that firms will report quality environmental issues in their corporate reports in order to benefit users of financial information. Given the important role of the manufacturing sector on the Nigerian economy, this is the first study of its kind investigating the impact of environmental cost on the financial performance among manufacturing firms in Nigeria. The study tackles the issue of donation and employee benefits in the context of environmental cost which similar studies were not able to examine.
Erin Olayinka; Eriki Emoarehi; Arumona Jonah; Jacob Ame
Volume 4, Issue 9 , September 2017, , Pages 937-952
Abstract
This study examines the impact of Enterprise Risk Management (ERM) on financial performance in the emerging market with special focus on the Nigerian financial sector. The study investigates 40 companies from the period 2012 to 2016 resulting into 200 firm observations. The method used to measure financial ...
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This study examines the impact of Enterprise Risk Management (ERM) on financial performance in the emerging market with special focus on the Nigerian financial sector. The study investigates 40 companies from the period 2012 to 2016 resulting into 200 firm observations. The method used to measure financial performance was Return on Assets (ROA) while Value at Risk (VaR) was used as a proxy for Enterprise Risk Management (ERM). The study used other control variables such as Leverage (LEV), Board Size (BSIZE), Firm Size (FSIZE), Institutional Ownership (INTOWN) and Risk Management Committee Size (RMC). The result of regression coefficient shows that VaR (0.216), BSIZE (0.218), FSIZE (0.021), INTOWN (0.001), and RMC (0.032) are statistically significant with the exception of LEV (-0.572) which shows an inverse relationship with financial performance. The empirical findings show that ERM is positively and significantly related to financial performance. The results support the hypothesis that ERM has a significant impact on the financial performance of listed firms in the Nigerian financial sector. We recommend that the regulatory authorities (Central Bank of Nigeria, Financial Reporting Council of Nigeria etc.) in charge of the financial sector should ensure that all firms in the sector adopt ERM as a matter of urgency and continue to ensure strict compliance with the ERM framework.