Title: Determinants of Firm Value: The Role Of Environmental Management Performance Of Listed Industrial Goods Firms On Nigeria Exchange Group
Authors: Onyali, Chidiebele Innocent, Ukoh Maureen Uzoamaka, Okafor, Kenebechukwu, Okeke Onyekachi Nath
Volume: 9
Issue: 4
Pages: 58-68
Publication Date: 2025/04/28
Abstract:
The study investigated the effect of environmental management performance in determining the firm value of listed industrial goods firms on Nigeria Exchange Group. Specifically, the study examined the effect of environmental prevention, protection and waste management costs respectively on price-earnings ratio (P/E), earnings per share (EPS) and net assets per share (NAPS) of listed industrial goods firms on Nigeria Exchange Group. The theoretical framework of the study was based on stakeholders' theory. The research design employed in this study is ex-post facto. The population of the study comprised thirteen (13) listed industrial goods firms on the Nigeria Exchange Group as at 31st December 2024 while the sample size which was derived by purposive sampling technique was made up of ten (10) of these firms with complete annual report and accounts from 2014-2023 which was the period covered by this study. Secondary data collection based on the firms' annual report and accounts was utilized for the study. The three hypotheses of the study which were tested with the aid of robust least square regression technique at 5% level of significance revealed that: environmental prevention, protection and waste management costs respectively have significant positive effect on price-earnings ratio (P/E), earnings per share (EPS) and net assets per share (NAPS) of listed industrial goods firms on Nigeria Exchange Group. Based on the findings, it was recommended amongst others that firms strategically invest in environmentally sustainable practices and technologies that align with corporate sustainability as such firms may be considered less risky, leading to a higher valuation in terms of their value and financial metrics.