ASHU FABRICE ENOW (Ph.D)
Department Of Accounting, Faculty Of Management Sciences, University Of Calabar, Calabar, Cross River State
E.MAIL: [email protected]/[email protected]
Abstract
The study investigated how environmental accounting practices could impact firm value of medium scale enterprises in Nigeria emphasizing the effects of environmental accounting disclosure and the moderating influence of corporate ethics. The study employed a panel multiple regression analysis. Information was gathered from medium scale enterprises that are listed on the Nigerian Exchange Group, specifically looking at their annual reports and their adherence to the Global Reporting Initiatives (GRI) framework for environmental accounting practices. From the research analysisthe findings revealed that the correlation between environmental accounting disclosure (EAD) and firm value, suggesting that greater transparency and reporting on environmental practices could impact how investors view a company and improve its valuation. Although the moderating role of corporate ethics (measured by GW) demonstrated a positive link, it did not reach statistical significance. Nevertheless, the research showed a notable beneficial interaction effect (EAD*GW) on company worth, indicating that when environmental accounting disclosure and corporate ethics are aligned, they can have a combined positive impact on firm valuation. It was determined that environmental accounting practices and corporate ethics play a crucial role in influencing the firm value of chosen Medium Scale Enterprises in Nigeria. It was recommended that Medium Scale Enterprises improve transparency in environmental reporting, foster a robust ethical culture, and align environmental accounting disclosure and corporate ethics strategically to optimize their impact on firm value.
Keywords: Environmental Accounting Practices/Disclosures, Corporate Ethics, Global Reporting Initiatives, Goodwill.