International Journals of Marketing and Technology
Year : 2011, Volume : 1, Issue : 6
First page : ( 6) Last page : ( 21)
Online ISSN : 2248-1058.

Environmental cost and firm performance: Evidence from Quoted Oil Companies in Nigeria

Hassan Shehu Usman

Department Of Accounting, Ahmadu Bello University, Zaria, Nigeria

Online published on 29 June, 2013.

Abstract

Multinational oil companies in Nigeria extract a large amount of the world's energy and claim to be discharging the environmental costs by incurring cost of bringing back the degregated environment to its formal state. These costs are accounted for using conventional accounting treatment. While on the other hand, the oil producing communities are claiming a total neglect by the oil companies in discharging their environmental costs. Therefore, the study examines the effect of environmental expenditure on the performance of quoted Nigerian oil companies. Correlational research design is adopted using multiple regression as tool of analysis for the data collected from all the quoted oil companies in Nigeria. The result reveals that environmental expenditure has significant effect on the performance of quoted oil companies in Nigeria. It is therefore recommended among others that the management of oil companies in Nigeria should increase spending on environmental issues in their host community in other to improve their performance.

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