Effects of Firm Characteristics on Environmental Accounting Disclosure in Listed Industrial Goods Companies in Nigeria.

Abstract

This study investigates the effects of firm characteristics on the extent of environmental accounting disclosures among listed industrial goods companies in Nigeria. A longitudinal research design was applied covering thirteen firms over a ten-year period (2015–2024). Environmental disclosure was measured using a 43-item index across eight thematic categories, derived through content analysis of annual reports. A dichotomous scoring approach was used to compute quantitative disclosure scores. Panel data were analysed using Ordinary Least Squares regression within a Random Effects framework, selected based on the Hausman and Breusch–Pagan tests. Diagnostic procedures confirmed the absence of multicollinearity and heteroscedasticity in the model. Findings show that, collectively, the firm-level predictors significantly explain variations in environmental disclosure practices. At the individual level, firm age positively and significantly affects environmental disclosure, while managerial ownership shows a negative and significant effect. Firm size, profitability, and financial leverage exhibit positive or negative but statistically insignificant relationships. The results suggest that older firms disclose more environmental information, whereas higher managerial ownership reduces transparency. The study concludes by recommending strengthened regulatory enforcement, broader adoption of environmental reporting standards, and enhanced managerial accountability to improve environmental transparency among Nigerian industrial firms.