RELATIONSHIP BETWEEN CARBON ACCOUNTING AND PERFORMANCE OF CORPORATE FIRMS IN NIGERIA
Keywords:
Carbon Accounting, Performance, Profitability, Corporate Governance.Abstract
The growing problems of climate change and global warming pose a threat to the future
of the earth. Many stakeholder organizations are voicing concerns about these problems
and offering a variety of solutions. Governments are particularly being urged by
environmental organizations to pass legislation controlling greenhouse gas (GHG)
emissions and to lead the charge in creating policies to reduce carbon emissions. Thus, it
is now crucial for businesses to safeguard their brands by developing proactive plans for
environmental issues and disclosing GHG emissions data in response to stakeholder
demands. The study examined the relationship between carbon emissions disclosure by
corporate governance and performance of financial institutions registered by the Central
Bank of Nigeria. Anchored on Stakeholder Theory, the study emplo yed a correlational
research design using secondary data from 10 financial institutions licensed by the
Central Bank of Nigeria, covering a five-year period (2018–2022). Purposive sampling
was adopted, and data analysis was conducted using the Ordinary Least Squares (OLS)
regression method via SPSS version 2025 to assess the impact of profitability and
corporate governance on carbon accounting. The findings revealed a significant and
positive relationship between carbon accounting and firm performance at the 5%
significance level. Furthermore, both profitability and corporate governance have
positive and significant relationship with carbon accounting. Based on the findings of the
study, it was concluded that carbon accounting has a significant effect on the
performance of corporate firms in Nigeria. Therefore, it was recommended that Nigerian
companies should consider investment in and disclosure of carbon accounting, more
independent directors and financial expertise should be considered in the composition of
board of directors
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