This study is aimed at examining the responsiveness of organizational performance to environmental accounting information of motor vehicle manufacturing firms in South East, Nigeria. Past studies show that there is a gap as a result of gross inadequacy in including environmental costs in processing firm accounting information. The data sources were mainly primary. The simple survey design was used in carrying out the research, employing questionnaire method, interviews, phone calls and e-mails. Judgmental techniques were employed in the sample selection from the population. Hypotheses formulated were tested, using appropriate test statistics, Analysis of Variance ( ANOVA) for Hypothesis 1 and the Pearson’s product moment correlation co-efficient (PPMCC) for Hypothesis II, Hypothesis III and Hypothesis IV. Data collected were presented using tables, figures, and analyzed with the appropriate test statistic as mentioned above. The results of the hypotheses testing reveal as follows:
Hypothesis I:
Environmental cost allocation processes adopted by motor vehicle manufacturing firms in South  East,  Nigeria  are  not  significantly  different  (p>0.05). 
Hypothesis  II:

Environmental consciousness had significant  positive relationship  with  firm size (p<0.05). Hypothesis III: Environmental cost disclosure in the financial report had significant positive relationship with firm profitability (p<0.05). Hypothesis IV: There is significant positive relationship between environmental cost and firm profitability (p<0.05).The study discovered that environmentally- friendly firms perform better and significantly disclose environmental related information in financial statements and reports. It is relevant to the extent that the management of the motor vehicle manufacturing firms should make use of the result to plan the firms’ operations to achieve effective performance. It is suggested that future works should address the issue of Environmental Accounting Information with respect to manufacturing firm performance, not excluding non-manufacturing firms. Furthermore, it is of great relevance not to limit the impact of environmental cost to firm performance, but to emphasize on the mandatory inclusion of environmental costs in processing accounting information at all levels of firm operation.

1.1 Background to the Study

All over the world, including Nigeria, many business establishments have concern in environmental management in order to address the business organizations to new challenges of the environment. Enahoro (2009) arguably recognizes that the world’s two greatest challenges are poverty and the systematic destruction of the environment. The world at large, including Nigeria, has enacted some laws and regulations on environmental protection. The US Environmental Protection Agency (US EPA) is responsible for enacting and implementing US Environmental Protection Laws such as the Atomic Energy Act (AEA), Clean Air Act (CAA) and Clean Water Act (CWA) ( There are some environmental laws by the Constitution of Federal Republic of Nigeria (1999). Section 20 of the ACT, mandated the protection of air, land, water, forest and wildlife. There are other environmental protection laws in Nigeria by National Environmental Standards and Regulations Enforcement Agency Act, NESREA, (2007). Such laws are: Harmful Wastes (Special Criminal Provisions) Act 2007 which encourages sanitation and pollution prevention and control. There is the Petroleum Act, Petroleum Products and Distribution (Management Board) Act, Factories Act and Water Resources Act. ( The United Nations Division for Sustainable Development, (UNDSD), 2003, identified some techniques for managing environmental costs. Environmental Impact Assessment Decree (EIA), 1992 plays some important roles with respect to the protection of the Nigerian environment.

The importance of Environmental Management Accounting (EMA) can never be over-emphasized. It is becoming increasingly important for Environmental Management decisions, as well as for all types of routine management activities. (Jasch, 2006a and Burritt, 2004). The environmental management is actually regarded as part of the administration’s strategy to specify measures for dealing with environmental issues. It is also used internally for carrying out environmental conservation activities. As a matter of fact, Environmental accounting is a veritable tool in the hands of management to carry out effectively and efficiently its managerial activities. Environmental accounting data is mainly used by the management of organizations to carry out their internal processes. They are also used externally through disclosure in environmental reports. The disclosure of environmental data is one of the key elements in an environmental report. The importance of this disclosure is that it enables the parties utilizing the information to get an understanding of the firm’s stand on environmental conservation, and how to specifically deal with environmental issues.

In order to achieve, as well as to maintain effective and efficient business management resulting in effective performance, there is the need for a very good management of environmental conservation activities. This can be achieved through accurate identification and measurement of investments and costs related to environmental conservation activities including the preparation and analysis of the data. Environmental accounting also helps the organization to have a better insight into the potential benefit of its investments and costs, thereby improving the efficiency of its activities.

As indicated previously, a good number of authors like Allewine and Stone on environmental issues and environmental accounting in particular, have given a variety of....

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Item Type: Project Material  |  Attribute: 180 pages  |  Chapters: 1-5
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