STAKEHOLDERS’ EXPECTATIONS AND ENVIRONMENTAL ACCOUNTING PRACTICES OF LISTED MANUFACTURING FIRMS IN NIGERIA

Abstract

The expectations of stakeholders regarding environmental activities of an organisation are factors that should be considered with priority because their actions as individuals or groups could increase or reduce firm value. In view of this, the study investigated the effect of stakeholders’ expectations on environmental accounting practices. The study used survey research design and sourced for data by administering questionnaire to employees, shareholders, customers and selected members of the host community of sampled firms. The population of the study comprised all the 67 manufacturing firms listed on the
Nigerian Stock Exchange at the end of 2018. A sample of twenty-four (24) firms was purposively selected. Data were analysed using descriptive and inferential statistics. The regression results showing the individual effect of stakeholders’ expectations on environmental accounting practices revealed that environmental objectives and policies, occupational health and safety, compliance obligation, and company environmental culture and policies are significantly associated with environmental accounting practices. In contrast, product risk and opportunities do not have a significant relationship with environmental accounting practices of the selected firms. The study recommends that listed manufacturing firms should make efforts to ensure that stakeholders’ expectations are taken into consideration in their daily business activities.