Effect Of Environmental Information Disclosure On Financial Performance Of Listed Construction Companies In Nigeria

Abstract espite the rising interest in environmental issues, there have been diverse views regarding the nature of the relationship between environmental information disclosure and financial performance of organizations Worldwide. The challenge of lack of adequate or non-environmental disclosures among pollution exposed companies in Nigeria in their annual financial reports over the years is a thing of concern to various stakeholders. This study examined the effect of environmental information disclosure on financial performance of listed construction companies in Nigeria. The focus variables of this study were environmental information disclosure as independent variable and financial performance for dependent variable. The independent variable is proxied by waste management cost and employee health and safety cost. The dependent variable is proxy by returns on assets (ROA). The secondary data obtained from the annual reports of seven construction firms listed on the Nigeria Exchange Group for 10 years ranging from year 2012 to 2021. This study employed panel researchi design,i withi specifici focusi oni thei longitudinal panel seriesidesign. The study reveals that waste management costs have positive and significant effect on return on assets while employee health and safety costs have negative and insignificant effect on return on assets. The study concluded that waste management costs is veritable tools of environmental information disclosure that enhanced construction firm’s performance in the study are. The study recommended that firms should have positive disposition towards social and environmental waste management practices and disclose more of these information in their annual reports as the level of these information disclosures have exerted significant influence on firms’ performance over the years.