Environmental accounting disclosures and firm’s profitability in the nigerian oil and gas industry in south-south region of nigeria (2006 – 2015)
Table Of Contents
- Cover page – – – – – iTitle page – – – – – iiDeclaration – – – – – iiiCertification – – – – ivDedication – – – – – vAcknowledgement – – – viAbstract – – – – – Table of contents – – – – viiiCHAPTER ONE: INTRODUCTION1.1 Background of the study – – – – – –
- 11.2 Statement of the problem – – – – – – 3
- 1.3 Objectives of the study – – – – – –
- 41.4 Research Questions – – – – – –
- 51.5 Research Hypothesis – – – – – –
- 51.6 Significance of the study – – – – – –
- 61.7 Scope of the study – – – – – – –
- 61.8 Limitation of the study – – – – – –
- 71.9 Organisation of the study – – – – – – 7CHAPTER TWO – REVIEW OF RELATED
LITERATURE2.0 Introduction – – – – – – – 9
- 2.1 Conceptual Review – – – – – – 9 2.
- 1.1Meaning and Concept of Environmental
Accounting – 9 2.
- 1.2Objectives of Environmental Accounting – – – 112.
- 1.3Benefits of Environmental Accounting – – – 122.
- 1.4Accounting interest in the Environment – – – 142.
- 1.5Impact of Environmental Issues on Financial
Statement – 152.
- 1.6Environmental Information and their Users – – – 202.
- 1.7Basic Environmental Accounting Elements – – – 252.
- 1.8Disclosure of Environmental Accounting
Information – 27 2.
- 1.9Determinant of Environmental Reporting in
Nigeria – – 282.
- 1.10
Environmental Accounting and Profitability – – 33 2.
- 1.11
Importance of Environmental Accounting – – – 342.
- 1.12
Challenges and Problems of Environmental Account –
- 362.2 Theoretical Review – – – – – – 372.
- 2.1Legitimacy Theory – – – – – – – 372.
- 2.2Stakeholders Theory – – – – – – 392.
- 2.3Agency Theory – – – – – – – 412.
- 2.4Institutional Theory – – – – – – 42
- 2.3 Empirical Review – – – – – – – 44CHAPTER THREE – METHODOLOGY3.0 Introduction – – – – – – –
- 473.1 Design of the Study – – – – – –
- 473.2 Area of the Study – – – – – – –
- 473.3 Method and sources of Data Collection – – –
- 483.4 Model Specification and Variable
Description – – 48
- 3.5 Data Analysis Technique – – – – – 49CHAPTER FOUR – DATA PRESENTATION,
ANALYSIS AND INTERPRETATIONS4.1 Introduction – – – – – – – –
- 504.2 Data Presentation – – – – – – –
- 504.3 Testing of Hypothesis – – – – – –
- 514.4 Discussion of Findings – – – – – – 52CHAPTER FIVE – SUMMARY OF FINDINGS,
CONCLUSION AND RECOMMENDATIONS5.1 Summary of Findings – – – – – –
- 535.2 Conclusion – – – – – – – – 54
- 5.3 Recommendations – – – – – – – 56References
– – – – – – – – – 58LIST OF TABLESTABLE TITLE
PAGES Table 1: Environmental Cost and Profit After Tax of
Mobil Producing Nigeria – – – – – – 50 Table 2: Analysis of Data Using SSPSS
(EnvironmentalCost
and Profit After Tax) – – – – 51
Thesis Abstract
The
study examined the relationship between Environmental Accounting Disclosures
and firm’s profitability in the Nigerian oil and gas industry in South- South
region of Nigeria from 2006 – 2015. The
main objective of the study was to examine the extent to which environmental
accounting disclosure impact on firm’s profitability. The methodology adopted was ex-post factor
design, this is because the event have already taken place in the past, the
design used in the study is descriptive and exploratory manner because the data
is aim at testing the hypothesis. The
study used secondary data, the data were collected from textbook, magazines, internets materials
and financial statement of Mobil Producing Nigeria Ltd from (2007 – 2016). The hypotheses were tested using Pearson
Product Moment Correlation, the test is used via SSPSS view. The findings from the study showed a
significant relationship between environmental cost and profitability of
selected firms. The study recommended
that companies should adopt uniform reporting and disclosure of environmental
issues for the purpose of control and measurement of performance and government
should make environmental reporting in annual report compulsory since most
organizations loudly report their environmental activities in their report.
Thesis Overview
<p>
<b><b><b><b><b><b><b><b><b><b><b><b><b></b></b></b></b></b></b></b></b></b></b></b></b></b></p><p><b><b><b><b>INTRODUCTION</b></b></b></b></p><p><b><b><b></b></b></b></p><b><b><b><p><b>1.1 Background<br>of the Study</b></p><p><b></b></p><b><p>Companies<br>are expected to prepare annual reports which disclose both qualitative and<br>quantitative information about their operations and performance (economical,<br>financial, social or otherwise) to be presented to their stakeholders (owners<br>or shareholders, government, employees etc.). <br>The information content requirements of these stakeholders are diverse<br>and as such, firms must not only disclose information about their financial<br>performance but prepare other reports such as Environmental Accounting reports,<br>sustainability report, Human Resources Accounting report, Good Corporate<br>Governance Report and so on.</p><p> According to Beredugo and Mefor (2013),<br>environmental accounting is an inclusive field of accounting. It provides reports for both internal and<br>external use. It generates environmental information to aid management<br>decisions on pricing, controlling overhead, and capital budgeting. Disclosing<br>environmental information is of interest to the public and to the financial<br>community.</p><p> In the developing countries and<br>Nigeria in particular, research previously conducted has shown that<br>environmental accounting disclosure are voluntary as a result of non-availability<br>of either local or international standards to guide disclosure. Companies tend to disclose this information<br>to conform to industry practices, pressures from environmental activist and<br>advocates, relationship with parent company (multi-National Corporations),<br>ownership structure of the company, size and level of profitability. (Bela,<br>2004).</p><p> The current position of environmental accounting<br>reporting and disclosures might best be described as confusing and full of<br>ambiguity. Statutory, regulatory. Quasi-regulatory<br>agents and standard setters are yet to prioritize the reporting and disclosure standard<br>and requirement for environmental accounting. While the accounting profession<br>globally recognizes the financial importance and significance of environmental<br>costs and its benefits. The majority<br>argued that the accounting and reporting for these costs need no new<br>theoretical issues and underpinnings but rather the guidance and requirement of<br>International Accounting Standard 1 (IASI) (presentation of financial<br>statement) are satisfactory. The impact<br>of the absence of the accounting standard on environmental reporting and disclosure<br>and the level of variations in the disclosure are some of the pertinent issues surrounding<br>current discussion in this area.</p><p><b>1.2 Statement<br>of the Problem</b></p><p><b></b></p><b><p>Environmental<br>accounting involves the identification, measurement and allocation of<br>environmental costs and the integration of these costs into business. It<br>encompasses the methods of communicating such information to companies’<br>stakeholders. In this sense, it is a<br>comprehensive approach to ensure good corporate governance that includes<br>transparency in its societal activities. <br>The unserious attitudes of several items have not take environmental<br>accounting into consideration makes performance below expectation (Deegan,<br>2014). This is because environmental<br>accounting helps the items to record all environmental costs incurred by the<br>business, finding a way of reducing the impact of it activities on the<br>environment (environmental expenses) so as to remain environmentally friendly.<br>According to Pramanik, Shil and Das (2007). <br>Some of the specific issues (problems) affecting the environmental<br>accounting and reporting practices include: Identification of environmental<br>cost and expenses, Capitalization of cost, Identification of environmental<br>liabilities and Measurement of liabilities</p><p> At present, no accounting standard has<br>been issued for accounting treatment of these specific problems. However, some guidelines<br>regarding these issues have been issued by many organizations such as<br>international chamber of commerce, the Japanese Industry Association, the<br>chemical manufacturing association, inter-governmental working group of expert<br>on intimation standards of accounting and reporting. As regard environmental reporting, different<br>organizations have also issued guidelines. <br>But these guidelines are only advisory in nature and not mandatory. Consequently, the researcher interest is therefore<br>to investigate the practice reporting status of the companies in South-South<br>Region of Nigeria and how this affects the profitability of these companies.</p><p><b>1.3 Objectives<br>of the Study</b></p><p><b></b></p><b><p> The main objective of this study is to<br>examine the extent to which environmental accounting disclosure impacts on<br>firm’s profitability. The specific<br>objectives are:</p><p>1. To<br>evaluate the level of environmental information activities disclosed by firms<br>in their annual reports.</p><p>2. To<br>examine the effect of the different accounting method of disclosing<br>environmental accounting cost.</p><p>3. To<br>examine the relationship between environmental accounting disclosures and<br>firm’s profitability.</p><p><b>1.4</b></p></b></b></b></b></b></b>
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