Environmental Sustainability and Stakeholder’s Value of Listed Manufacturing Companies in Nigeria

Abstract:

The paper addressed a major gap in the environmental sustainability literature, as pointed out by the dearth of studies examining stakeholders’ interest particularly in the developing countries. Presently, there is a high demand in the environmental accounting literature emphasizing the importance of paying attention to the stakeholder group. This paper investigates the effect of environmental sustainability on stakeholders’ value of listed manufacturing companies in Nigeria. The study employed survey research method. The instrument used in gathering the primary data was the questionnaire, which was designed in a five-point Likert scale format. 40 listed manufacturing companies were selected for this study; Four hundred (400) copies of questionnaires were purposively administered on the respondents, three hundred and twenty-six (326) copies of questionnaires were completed and returned. The theoretical framework was hinged on stakeholder theory and accountability theory which talked about the relationship between stakeholders and organisations and the need to be accountable. Results gotten from the statistical analysis showed that environmental sustainability has negative non-significant effect on management & employees’ value, negative and significant effect on shareholders’ value, community residents’ value and government/ regulatory agencies’ value. The study recommended that organisations should incorporate stakeholders’ interest in their day to day activities. Furthermore, financial statements should go beyond monetary environmental information to include non-monetary environmental information.