This study examines the effect of environmental accounting practices on investment decision of quoted food and beverage companies in Nigeria. The study employed the ex post facto research design. The population consisted of 23 quoted food and beverage companies in Nigeria as at 31st December 2018 according to Nigeria Stock Exchange (NSE). The sample size consisted of 10 food and beverages companies in Nigeria.
It employed the convenience sampling technique in selection of the sampled companies under investigation. Data from the research were obtained from financial statements and annual reports of the sampled companies. Validity and Reliability were premised on statutory audit of the financial statements. Data were analysed through descriptive and inferential statistics.
Investment decisions are as old as man and is now veiled in the mystery of antiquity. The choice is born out of a desire to make way for the future or to plan for rainy days. Under traditional financial theory, investors are called cautious wealth maximizers, adopting basic financial rules and basing their investment decisions solely on risk-return considerations. Studies further revealed that factors are not necessary to influence investment decisions.
Table of Contents
CHAPTER ONE: INTRODUCTION
1.1. Background to the Study
1.2. Statement of the Problem
1.3. Objective of the Study
1.4. Research Questions
1.5. Research Hypotheses
1.6 Justification for the Study
1.7 Significance of the Study
1.8 Scope of the study
1.9. Limitations of the Study
1.10 Operationalization of Variables
1.10.1 Mathematical Model
1.11 Operational Definition of Terms
CHAPTER TWO: REVIEW OF LITERATURE
2.1 Conceptual Review
2.1.1. Environmental Accounting
2.1.2 Environmental Accounting Practices in Nigeria
2.1.3 Environmental Acts and Regulations in Nigeria
2.1.4 Investment Decision
2.1.5 Measurement of Investment Decision
2.1.6 Measurement of Environmental Accounting Practices
2.2 Theoretical Review
2.2.1 Stakeholders Theory
2.2.2 Political Economy Theory
2.2.3 Legitimacy Theory
2.2.4 Signaling Theory
2.2.5 Theoretical Framework
2.3 Empirical Review
2.3.1 Environmental Accounting Practices and Market price per share
2.3.2 The controlling effect of firm size on the relationship between environmental accounting practices and market price per share
2.3.3 Environmental Accounting Practices and Volume of shares traded
2.3.4 The controlling effect of firm size on the relationship between environmental accounting practices and volume of shares traded
2.3.5 Environmental Accounting Practices and Market capitalization
2.3.6 The controlling effect of firm size on the relationship between environmental accounting practices and market capitalization
2.4 Tabular summary of Empirical Findings
2.5 Gap in Literature
2.6 Researcher’s Conceptual Framework
CHAPTER THREE: METHODOLOGY
3.1 Research design
3.3 Sample size and Sampling technique
3.4 Restatement of hypotheses
3.5 Methods of data collection
3.6 Instrument for Data Collection
3.7 Validity and Reliability test
3.8 Administration of Research Instrument
3.9 Method of Data Analysis
3.10 Model Specification and Measurement of Variables
3.11 Model Evaluation
3.12 A priori Expectation/Expected Result
3.13 Ethical Consideration
CHAPTER FOUR: DATA ANALYSES, RESULTS AND DISCUSSION OF FINDINGS
4.1 Descriptive Statistics
4.2 Testing of Hypotheses
4.2.1 Test of Hypothesis One (Ho1)
4.2.2: Test of Hypothesis Two (Ho2)
4.2.3: Test of Hypothesis Three (Ho3)
4.2.4: Test of Hypothesis Four (Ho4)
4.2.5 Testing of Hypothesis Five (H05)
4.2.6 Testing of Hypothesis Six
4.3 Discussion of Findings
4.4 Implications of Findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of the whole study
5.2. Summary of Findings
5.2.2 Theoretical Findings
5.2.3. Empirical Findings
5.3 Conclusion
5.4 Recommendations
5.5 Contribution to Knowledge
5.6 Suggestions for further studies
Research Objectives and Themes
The primary objective of this study is to analyze the effect of environmental accounting practices on the investment decisions of quoted food and beverage companies in Nigeria, specifically examining how these practices influence market price per share, volume of shares traded, and market capitalization, while controlling for firm size.
- Environmental accounting practices (Safety, Waste management, Environmental protection)
- Investment decision proxies (Market price, Volume, Capitalization)
- Influence of firm size on financial reporting relationships
- Stakeholder, Legitimacy, and Signaling theories in corporate reporting
- Empirical analysis of food and beverage companies on the Nigeria Stock Exchange
Excerpt from the Book
1.1. Background to the Study
Investment decision is as ancient as man and it is now shrouded in antiquity mystery. The decision is made out of the desire to make future provisions for unfavorable times. The need to uncertainty reduction associated with future outcomes of present actions made investment decision impeccable. However, the future outcomes certainty had always been elusive consequent upon changes in seasons and environmental factors which underline the risk concept (Oladapo, 2015). The key sectors of developed economies deregulation e.g. USA and Europe and volatility in financial markets recent in developing economies like Africa (Nigeria), managing investments and capital projects decision rules are been said to be on discretion over uncertainty (Okafor, 2018).
Investment decisions are taken by investors and investment managers who use fundamental analysis, technical analysis and judgment use to conduct investment analysis. Investment decisions are also backed up by decision-making instruments in which knowledge structure and market conditions systematically affect investment decisions of individuals as well as market outcomes (Ambrose & Vincent, 2014). Market behavior for investors stems from psychological decision making criteria that understand why people purchase or sell stocks (Sani, 2018). Thair, (2017) reported that the conduct of individual investments is said to be with buying stock choices. No matter how well educated an investor is, he has done his study, he still behaves looking at the loss fear in the future (Otu, Okon & Okafor, 2018).
Summary of Chapters
CHAPTER ONE: INTRODUCTION: Introduces the background, problem statement, objectives, and hypotheses concerning environmental accounting and investment decisions in Nigeria.
CHAPTER TWO: REVIEW OF LITERATURE: Analyzes relevant concepts and theories, including stakeholder, legitimacy, and signaling theories, alongside an empirical review of previous studies.
CHAPTER THREE: METHODOLOGY: Details the research design, population, sampling techniques, and data collection instruments used for the empirical analysis.
CHAPTER FOUR: DATA ANALYSES, RESULTS AND DISCUSSION OF FINDINGS: Presents the descriptive statistics and regression analysis to test the formulated hypotheses and discusses the results.
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS: Summarizes the study, draws conclusions based on findings, and provides recommendations for management, regulators, and future research.
Keywords
Environmental accounting practices, Environmental protection disclosure, Firm size, Investment decision, Market capitalization, Waste management disclosure, Safety related measures, Financial statements, Nigeria Stock Exchange, Corporate sustainability, Stakeholder theory, Signaling theory, Market price per share, Volume of shares traded, Investment behavior.
Frequently Asked Questions
What is the core focus of this research study?
The study examines the effect of environmental accounting practices on the investment decisions of quoted food and beverage companies in Nigeria, specifically looking at how disclosures influence market performance indicators.
What are the primary themes addressed in the work?
Key themes include environmental reporting, investment decision metrics like market capitalization and share volume, the impact of firm size as a control variable, and various corporate governance and accounting theories.
What is the main research objective?
The objective is to empirically ascertain the significant impact of environmental accounting disclosures on market price, trading volume, and market capitalization, while identifying the controlling role of firm size.
Which scientific methodology is employed?
The study uses an ex post facto research design, gathering secondary data from annual reports of 10 sampled companies and analyzing them through descriptive statistics and multiple regression models.
What is treated in the main body of the work?
The main body covers the theoretical framework, a detailed literature review, the methodological approach, empirical data presentation, regression result analysis, and a discussion of the implications of these findings.
Which keywords characterize this publication?
The work is characterized by terms such as environmental accounting practices, investment decision, firm size, market capitalization, and environmental protection disclosure.
How does firm size affect the relationship between environmental disclosure and investment decisions?
The study finds that firm size acts as a significant controlling variable, influencing how environmental reporting affects the market perception and valuation of food and beverage firms.
What conclusions does the author draw regarding environmental disclosure in Nigeria?
The author concludes that environmental accounting practices have a significant effect on investment decisions and recommends mandatory standards to improve disclosure and investor confidence.
- Quote paper
- Anonym (Author), 2019, Environmental Accounting Practices and Investment Decisions. Decision of Quoted Food and Beverage Companies in Nigeria, Munich, GRIN Verlag, https://www.grin.com/document/985933
