Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector

Ubesie Madubuko Cyril Ugwueze; Catherine Amaka; Nwachukwu Basilia Chiamaka

doi:doi:10.11648/j.jbed.20210603.18

| Peer-Reviewed

Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector

Ubesie Madubuko Cyril Ugwueze, Catherine Amaka, Nwachukwu Basilia Chiamaka

Published in Journal of Business and Economic Development (Volume 6, Issue 3)

Received: 15 July 2021 Accepted: 3 August 2021 Published: 30 September 2021

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

This study empirically explored the effect of environmental sustainability cost on the financial position of quoted manufacturing firms in Nigeria with evidence from the healthcare sector. In achieving the research target, the study estimated the effect of community development cost, employee benefit cost and raw material cost on the profit after tax of the selected healthcare manufacturing sector. Research design adopted was ex-post facto design while analytical tools employed were descriptive statistics and vector auto regression analysis techniques. Relevant diagnostic tests such as panel unit root (stationarity) test and co-integration test. Findings revealed that environmental sustainability cost operationalized by community development cost, employee benefit cost and raw material cost contributes positively to the long-run sustainable growth and development of healthcare manufacturing firms in Nigeria. On this background, the study suggested that healthcare manufacturing firms in Nigeria should consider investing in their workers through engaging them in various educational training and other beneficial skills for improved performance and organizational productivity. The firms should equally consider investment in community development projects of their host communities since they lead to more patronage which makes the company to thrive.

Published in	Journal of Business and Economic Development (Volume 6, Issue 3)
DOI	10.11648/j.jbed.20210603.18
Page(s)	184-195
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Profit After Tax, Community Development Cost, Employee Benefit Cost, Raw Material Cost

References

[1]	Karamat, J., Shurong, T., Ahmad, N., Afridi, S., Khan, S., & Khan, N. (2019). Developing sustainable healthcare systems in developing countries: Examining the role of barriers, enablers and drivers on knowledge management adoption. MDPI, 11 (954), 1-31. Available online at: www.mdpi.com/journal/sustainability.
[2]	Kai, C. (2015). The effect of environmental performance and preference disclosure on financial performance: Empirical evidence from unbalanced panel data of heavy-pollution industries in China. Journal of Industrial Engineering and Management, 8 (1).
[3]	Makori, D. M. & Jagongo, A. (2013). Environmental accounting and firm profitability: An empirical analysis of selected firms listed in Bombay Stock Exchange, India. International Journal of Humanities and Social Science, 3 (18), 248-256.
[4]	Wright, C. J. & Noe, B. F. (2006). Theory of Environment and Planning. India: Prentice Hall.
[5]	Ezejiofor, R. A., John-Akamelu, R. & Ben-Eucharia, C. C. (2016). Effect of sustainability environmental cost accounting on financial performance of Nigerian corporate organizations. International Journal of Scientific Research and Management (IJSRM), 4 (08), 4536-4549.
[6]	Manrique S. & M. Carmen (2017). Analyzin the effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries. Sustainability. 9. 1957.
[7]	Hasan, Ş. & Hakan, Ö. (2012). The Importance of Environmental Accounting in the Context of Sustainable Development and Within IFRS Evaluation. International Symposium on Sustainable Development, Sarajevo.
[8]	Khudhair, A. A., Norwani, N. M., Ahmed, A. A. H. K. &Aljajawy, T. M. (2019). The relationship between corporate social responsibility and financial performance of Iraqi corporations: A literature review. Journal of Modern Accounting and Auditing, 15 (1), 28-33.
[9]	Niresh, J. A., & Silva, W. H. E. (2018). The nexus between corporate social responsibility disclosure and financial performance: Evidence from the listed banks, finance and insurance companies in Sri Lanka. Accounting and Finance Research, 7 (2), 65.
[10]	Etale, L. M. &Otuya, S. (2018). Environmental responsibility reporting and financial performance of quoted oil and gas companies in Nigeria. European Journal of Business and Innovation Research, 6 (6), 23-34.
[11]	Akparhuere, G. O. (2019). Environment reporting in annual reports: A comparative analysis of reporting practices of listed firms in Nigeria. Archives of Business Research, 7 (2), 183-206.
[12]	Obara, Ohaka and Nangih (2017). The effect of accounting for waste management expenditure on the profitability of oil and gas companies in Nigeria. International Journal of Economics, Commerce and Management, V (3), 68-81.
[13]	Nyirenda, G., Ngwakwe, C. C. &Ambe, C. M. (2013). Environmental management practices and firm performance in a South African mining firm. Managing Global Transitions, 11 (3), 243-260.
[14]	Nnamani, J. N. & Onyekwelu, U. L. (2017). Effect of sustainability accounting and reporting on financial performance of firms in Nigeria brewery sector. European Journal of Business and innovation Research, 5 (1), 1-15.
[15]	Owolabi, F., Adetula, D., Taleatu, A. &Uwuigbe, U. (2016). Assessment of sustainability reporting in Nigerian industrial goods sector, 3RD International Conference on Africa Development Issues (CU – ICADI), 383-386.
[16]	Ofoegbu, G. N., Odoemelam, N. &Okafor, R. G. (2018). Corporate board characteristics and environmental disclosure quantity: Evidence from South Africa (integrated reporting) and Nigeria (traditional reporting). Cogent Business and Management, 15, 1-27.
[17]	Malarvizhi, P. & Ranjani, M. (2016). Link between corporate environmental disclosure and firm performance. Perception or reality? Review of Integrated Business & Economic Research, 5 (3).
[18]	Menhat, M. & Yusuf, Y. (2018). Factors influencing the choice of performance measures for the oil and gas supply chain. iCITES, 1-9.
[19]	Alawiye-Adams, A. A. & Akumolafe, A. (2017). Environmental disclosure practices in annual reports of listed manufacturing firms in Nigeria, available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951272.
[20]	Zhang, K. Q. & Chen, H. H. (2017). Environmental performance and financing decisions impact on sustainable financial development of Chinese environmental protection enterprises. Sustainability, 9, 1-14.
[21]	Odera, O., Scott, A. &Gow, J. (2016). An examination of the quality of social and environmental disclosures by Nigerian oil companies. Corporate Governance, 16 (2), 400-419.
[22]	Osazefua, I. J. (2019). Operational efficiency and financial sustainability of listed manufacturing companies in Nigeria. Journal of Accounting and Taxation, 11 (1), 17-31.
[23]	Dibia, N. O. & Onwuchekwa, J. C. (2015). Determinants of environmental disclosures in Nigeria: A case study of oil and gas companies. International Journal of Finance and Accounting, 4 (3), 145-152.
[24]	Okegbe, T. O. & Ofurum, D. I. (2019). The effect of environmental management accounting and financial performance of Nigerian consumer goods firms. International Journal of Advanced Academic Research \| Social and Management Sciences, 5 (1), 1-17.
[25]	Shehu, U. H. (2014). Environmental costs and firm performance: evidence from quoted oil and gas companies in Nigeria.
[26]	Mohammed, S. D. (2018). Mandatory social and environmental disclosure: A performance evaluation of listed Nigerian oil and gas companies pre- and post-mandatory disclosure requirements. Finance and Accounting, 6 (2), 56-68.
[27]	Ndubuisi-Okolo, P. U., Anekwe, R. I. & Attah, E. Y. (2016). Waste management and sustainable development in Nigeria: A study of Anambra State Waste Management Agency. European Journal of Business and Management, 8 (17), 132-144.
[28]	Nwaiwu, N. J. & Oluka, N. O. (2018). Environmental cost disclosure and financial performance of oil and gas in Nigeria. International Journal of Advanced Academic Research \| Financial Management, 4 (2), 1-23.
[29]	Nazaripour, M. & Shadi, H. (2015). Impact of debt financing and effective debt management on performance assessment in Tehran stock exchange. Mediterranean Journal of Social Sciences MCSER Publishing, Rome-Italy, 6 (6), 101-108.
[30]	Agbo, B. O., Ohaegbu, O. K. &Akubuilo, F. (2017). Effect of environmental cost on financial performance of Nigerian brewery. European Journal of Business and Management, 9 (7), 59-64.
[31]	Abubakar, A. A. &Akomolafe, A. (2017). Influence of firms attributes on environmental disclosure in listed brewery companies in Nigeria. Research Journal of Finance and Accounting, 8 (21), 31-35.
[32]	Bolton, A. (2018). Climate Change and Environmental Health. Christchurch: ESR publisher.
[33]	Pruss-Ustün A, Wolf J, Corvalan C, et al. 2016. Preventing Disease through Healthy Environments: A global assessment of the burden of disease from environmental risks. Geneva: World Health Organization.
[34]	Royal Society of New Zealand (2017). Human Health Impacts of Climate Change for New Zealand. Wellington: Royal Society of New Zealand.
[35]	World Health Organization and Healthcare Without Harm (2009). Healthy Hospitals, Healthy Planet, Healthy People: Addressing climate change in healthcare settings. URL: www.who.int/globalchange/publications/healthcare_settings/en.

Cite This Article

Plain Text BibTeX RIS

APA Style

Ubesie Madubuko Cyril Ugwueze, Catherine Amaka, Nwachukwu Basilia Chiamaka. (2021). Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector. Journal of Business and Economic Development, 6(3), 184-195. https://doi.org/10.11648/j.jbed.20210603.18

Copy | Download

ACS Style

Ubesie Madubuko Cyril Ugwueze; Catherine Amaka; Nwachukwu Basilia Chiamaka. Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector. J. Bus. Econ. Dev. 2021, 6(3), 184-195. doi: 10.11648/j.jbed.20210603.18

Copy | Download

AMA Style

Ubesie Madubuko Cyril Ugwueze, Catherine Amaka, Nwachukwu Basilia Chiamaka. Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector. J Bus Econ Dev. 2021;6(3):184-195. doi: 10.11648/j.jbed.20210603.18

Copy | Download

@article{10.11648/j.jbed.20210603.18,
  author = {Ubesie Madubuko Cyril Ugwueze and Catherine Amaka and Nwachukwu Basilia Chiamaka},
  title = {Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector},
  journal = {Journal of Business and Economic Development},
  volume = {6},
  number = {3},
  pages = {184-195},
  doi = {10.11648/j.jbed.20210603.18},
  url = {https://doi.org/10.11648/j.jbed.20210603.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20210603.18},
  abstract = {This study empirically explored the effect of environmental sustainability cost on the financial position of quoted manufacturing firms in Nigeria with evidence from the healthcare sector. In achieving the research target, the study estimated the effect of community development cost, employee benefit cost and raw material cost on the profit after tax of the selected healthcare manufacturing sector. Research design adopted was ex-post facto design while analytical tools employed were descriptive statistics and vector auto regression analysis techniques. Relevant diagnostic tests such as panel unit root (stationarity) test and co-integration test. Findings revealed that environmental sustainability cost operationalized by community development cost, employee benefit cost and raw material cost contributes positively to the long-run sustainable growth and development of healthcare manufacturing firms in Nigeria. On this background, the study suggested that healthcare manufacturing firms in Nigeria should consider investing in their workers through engaging them in various educational training and other beneficial skills for improved performance and organizational productivity. The firms should equally consider investment in community development projects of their host communities since they lead to more patronage which makes the company to thrive.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector
AU  - Ubesie Madubuko Cyril Ugwueze
AU  - Catherine Amaka
AU  - Nwachukwu Basilia Chiamaka
Y1  - 2021/09/30
PY  - 2021
N1  - https://doi.org/10.11648/j.jbed.20210603.18
DO  - 10.11648/j.jbed.20210603.18
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 184
EP  - 195
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20210603.18
AB  - This study empirically explored the effect of environmental sustainability cost on the financial position of quoted manufacturing firms in Nigeria with evidence from the healthcare sector. In achieving the research target, the study estimated the effect of community development cost, employee benefit cost and raw material cost on the profit after tax of the selected healthcare manufacturing sector. Research design adopted was ex-post facto design while analytical tools employed were descriptive statistics and vector auto regression analysis techniques. Relevant diagnostic tests such as panel unit root (stationarity) test and co-integration test. Findings revealed that environmental sustainability cost operationalized by community development cost, employee benefit cost and raw material cost contributes positively to the long-run sustainable growth and development of healthcare manufacturing firms in Nigeria. On this background, the study suggested that healthcare manufacturing firms in Nigeria should consider investing in their workers through engaging them in various educational training and other beneficial skills for improved performance and organizational productivity. The firms should equally consider investment in community development projects of their host communities since they lead to more patronage which makes the company to thrive.
VL  - 6
IS  - 3
ER  -

Copy | Download

Author Information

Ubesie Madubuko Cyril Ugwueze

Department of Accountancy, Faculty of Management Sciences, Enugu State University of Science and Technology, Enugu, Nigeria
Catherine Amaka

Department of Accountancy, Faculty of Management Sciences, Enugu State University of Science and Technology, Enugu, Nigeria
Nwachukwu Basilia Chiamaka

Department of Accountancy, Faculty of Management Sciences, Enugu State University of Science and Technology, Enugu, Nigeria

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Ubesie Madubuko Cyril Ugwueze, Catherine Amaka, Nwachukwu Basilia Chiamaka. (2021). Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector. Journal of Business and Economic Development, 6(3), 184-195. https://doi.org/10.11648/j.jbed.20210603.18

Copy | Download

ACS Style

Ubesie Madubuko Cyril Ugwueze; Catherine Amaka; Nwachukwu Basilia Chiamaka. Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector. J. Bus. Econ. Dev. 2021, 6(3), 184-195. doi: 10.11648/j.jbed.20210603.18

Copy | Download

AMA Style

Ubesie Madubuko Cyril Ugwueze, Catherine Amaka, Nwachukwu Basilia Chiamaka. Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector. J Bus Econ Dev. 2021;6(3):184-195. doi: 10.11648/j.jbed.20210603.18

Copy | Download

@article{10.11648/j.jbed.20210603.18,
  author = {Ubesie Madubuko Cyril Ugwueze and Catherine Amaka and Nwachukwu Basilia Chiamaka},
  title = {Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector},
  journal = {Journal of Business and Economic Development},
  volume = {6},
  number = {3},
  pages = {184-195},
  doi = {10.11648/j.jbed.20210603.18},
  url = {https://doi.org/10.11648/j.jbed.20210603.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20210603.18},
  abstract = {This study empirically explored the effect of environmental sustainability cost on the financial position of quoted manufacturing firms in Nigeria with evidence from the healthcare sector. In achieving the research target, the study estimated the effect of community development cost, employee benefit cost and raw material cost on the profit after tax of the selected healthcare manufacturing sector. Research design adopted was ex-post facto design while analytical tools employed were descriptive statistics and vector auto regression analysis techniques. Relevant diagnostic tests such as panel unit root (stationarity) test and co-integration test. Findings revealed that environmental sustainability cost operationalized by community development cost, employee benefit cost and raw material cost contributes positively to the long-run sustainable growth and development of healthcare manufacturing firms in Nigeria. On this background, the study suggested that healthcare manufacturing firms in Nigeria should consider investing in their workers through engaging them in various educational training and other beneficial skills for improved performance and organizational productivity. The firms should equally consider investment in community development projects of their host communities since they lead to more patronage which makes the company to thrive.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Effect of Environmental Sustainability Cost on the Financial Position of Quoted Manufacturing Firms in Nigeria: Evidence from Healthcare Sector
AU  - Ubesie Madubuko Cyril Ugwueze
AU  - Catherine Amaka
AU  - Nwachukwu Basilia Chiamaka
Y1  - 2021/09/30
PY  - 2021
N1  - https://doi.org/10.11648/j.jbed.20210603.18
DO  - 10.11648/j.jbed.20210603.18
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 184
EP  - 195
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20210603.18
AB  - This study empirically explored the effect of environmental sustainability cost on the financial position of quoted manufacturing firms in Nigeria with evidence from the healthcare sector. In achieving the research target, the study estimated the effect of community development cost, employee benefit cost and raw material cost on the profit after tax of the selected healthcare manufacturing sector. Research design adopted was ex-post facto design while analytical tools employed were descriptive statistics and vector auto regression analysis techniques. Relevant diagnostic tests such as panel unit root (stationarity) test and co-integration test. Findings revealed that environmental sustainability cost operationalized by community development cost, employee benefit cost and raw material cost contributes positively to the long-run sustainable growth and development of healthcare manufacturing firms in Nigeria. On this background, the study suggested that healthcare manufacturing firms in Nigeria should consider investing in their workers through engaging them in various educational training and other beneficial skills for improved performance and organizational productivity. The firms should equally consider investment in community development projects of their host communities since they lead to more patronage which makes the company to thrive.
VL  - 6
IS  - 3
ER  -

Copy | Download