Title: Corporate GHG Emissions Disclosure and R&D Innovative Performance of Quoted Manufacturing Firms in Nigeria
Authors: Uzoamaka Lilian Anadebe and Theresa N. Ofor, PhD
Volume: 9
Issue: 3
Pages: 634-647
Publication Date: 2025/03/28
Abstract:
This study examined the effect of corporate Greenhouse Gas (GHG) emission disclosure on the R&D innovative performance of quoted manufacturing firms on the Nigerian Exchange Group (NGX). The specific objective was to evaluate the effect of GHG emission (Scope 1) disclosure, GHG emission (Scope 2) disclosure and GHG emission (Scope 3) disclosure on the research & development innovation expenditure. The study anchored on two theories: 'agency theory' and 'stakeholder theory'. The ex post facto research design was used and a purposive sample of twenty-one manufacturing firms quoted on the NGX during the study period (2014-2023) was selected as the sample. This study utilised secondary sources of data, from annual financial statements of the firms. The data were analysed using multiple regression techniques. The results showed a non-significant positive effect of GSco1 on RDIE (p=0.2774); GSco2 had a significant positive effect on RDIE (p=0.0060); and, GSco3 negatively affected RDIE (p=0.0039) of quoted manufacturing firms. The study concluded that corporate GHG emissions disclosure affects the innovative performance of quoted manufacturing firms in Nigeria. The study recommended among others that manufacturing firms should publicly report Scope 1 GHG emissions to demonstrate a firm's commitment to environmental sustainability and responsible business practices in order to enhance the company's reputation and brand image, attracting environmentally conscious investors, customers, and stakeholders.