Environmental Audit and Corporate Performance of Listed Manufacturing Companies: An Emerging Market Experience

References

[1] Abdullahi, H., & Abubakar, S. (2023). Environmental audit and corporate performance: Evidence from Nigerian manufacturing firms. Journal of Accounting and Sustainability, 11(2), 45–62. https://doi.org/10.1108/JAS-05-2023-0102

[2] Abiola, K., Igbekoyi, O., & Adeyemo, T. (2024). Environmental compliance expenditure, conservation investment, and financial performance of multinational firms in Nigeria. Journal of Corporate Sustainability and Risk Management, 11(1), 55–78.

[3] Abu, A. M., Monteiro, J., & Rahman, F. (2025). Sustainability reporting as a moderator of environmental audit effectiveness: Evidence from ASEAN markets. Journal of Cleaner Production, 431, 139876. https://doi.org/10.1016/j.jclepro.2025.139876

[4] Adegbite, E., & Eniola, J. O. (2020). Environmental regulation and compliance behaviour of manufacturing firms in Nigeria. Journal of Accounting and Taxation, 12(4), 89–102.

[5] Adetayo, A., Oladipo, S., & Ibrahim, M. (2024). Environmental compliance, sustainability reporting, and firm performance: Evidence from Nigeria. African Journal of Business and Economic Research, 21(1), 78–95. https://doi.org/10.1108/AJBER-03-2024-0042

[6] Adubor, A., Okeke, P., & Ajayi, T. (2022). Stakeholder engagement and corporate financial performance in Nigerian manufacturing firms. Journal of Business Ethics and Sustainability, 18(2), 55–72. https://doi.org/10.1108/JBES-02-2022-0012

[7] Afolabi, A. O., Inekwe, M., & Adegbie, F. F. (2023). Environmental violation disclosures and firm performance in Nigeria. Journal of Financial Reporting and Accounting, 21(3), 455–476. https://doi.org/10.1108/JFRA-04-2022-0139

[8] Afolabi, A. O. (2024). Environmental auditing and corporate performance of quoted manufacturing firms in Nigeria. Journal of Accounting and Management, 14(2), 85–102.

[9] Akinleye, G. T., & Owoniya, B. O. (2024). Sustainability reporting and performance of selected quoted firms in Nigeria. Asian Journal of Economics, Business and Accounting, 24(6), 53–67. https://doi.org/10.9734/ajeba/2024/v24i61342

[10] Ali-Momoh, T., Okolie, O., & Sani, K. (2024). Regulatory compliance and corporate performance: Nigerian manufacturing evidence. African Journal of Accounting Research, 19(2), 67–85. https://doi.org/10.1108/AJAR-04-2024-0014

[11] Al-Naser, A., Putri, D., Rahman, I., & Setiawan, R. (2021). Disclosures of environmental and social performance and financial results: The moderating role of governance. Asian Journal of Environmental Accounting and Performance, 6(4), 201–222.

[12] Ame, T. (2020). Audit committee attributes and sustainability disclosures in Nigerian oil and gas firms. Journal of Financial Reporting and Accounting, 18(4), 567–584. https://doi.org/ 10.1108/JFRA-07-2020-0078

[13] Arum, J. (2025). Environmental audits, sustainability reporting, and firm performance in emerging markets. International Journal of Accounting and Sustainability, 15(1), 23–45. https://doi.org/10.1108/IJAS-01-2025-0003

[14] Brigham, E. F., & Daves, P. R. (2021). Intermediate financial management (14th ed.). Cengage Learning.

[15] Brigham, E. F., & Houston, J. F. (2021). Fundamentals of financial management (15th ed.). Cengage Learning.

[16] Buallay, A. (2020). ESG disclosure and financial performance: A cross-country analysis. Corporate Social Responsibility and Environmental Management, 27(6), 2416–2434.

[17] Cao, H., Zhang, Y., & Huang, J. (2023). Environmental risk assessment and management: Lessons for manufacturing firms. Journal of Environmental Management, 328, 116987. https://doi.org/10.1016/j.jenvman.2022.116987

[18] Chen, N., & Xu, L. (2023). Environmental violation disclosures and financial distress in heavy-polluting firms. Journal of International Sustainability Finance, 14(2), 88–109.

[19] Damodaran, A. (2021). Applied corporate finance (5th ed.). Wiley.

[20] DiMaggio, P., & Powell, W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101

[21] Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific Sociological Review, 18(1), 122–136. https://doi.org/10.2307/1388226

[22] Erin, O., Okoh, B., & Okika, F. (2023). Integrated environmental audits and sustainability reporting in Nigerian manufacturing. International Journal of Corporate Governance, 12(2), 101–122. https://doi.org/10.1108/IJCG-05-2023-0043

[23] Eze, P., et al. (2022). Third-party environmental audits: Impacts on stakeholder trust and administrative costs in Nigerian manufacturing. African Journal of Environmental Auditing, 7(4), 99–117.

[24] Fasua, H. K., & Osifo, O. I. U. (2020). Environmental accounting and corporate performance. International Journal of Academic Research in Business and Social Sciences, 10(9), 142-154.

[25] Folake, T., & Moruff, S. (2019). Enterprise risk management and corporate performance of listed non-financial firms in Nigeria. Nigerian Journal of Finance and Business Research, 5(2), 77–95.

[26] Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.

[27] Huang, Z., Li, P., & Ren, S. (2024). Environmental violation reports, capital structure, and financial risk: Post-violation green certification effects. Environmental Economics and Policy Review, 19(1), 58–76.

[28] Ícaro Guilherme Félix da Cunha, I. G. F., Santos, M., & Ribeiro, T. (2025). Regulatory compliance and ESG–performance dynamics: A systematic review. Journal of Regulatory Governance and Corporate Reporting, 8(1), 1–26.

[29] International Monetary Fund. (2023). World Economic Outlook: Inflation and global recovery. International Monetary Fund.

[30] Iredele, O. (2020). Environmental violation reporting and firm performance: Evidence from Nigeria. Journal of Environmental Accounting and Management, 8(2), 112–128. https://doi.org/10.1080/JEAM-2020-0112

[31] Khan, F., Rana, S., & Rehman, A. (2022). Environmental risk assessment and corporate governance: Evidence from emerging markets. Journal of Environmental Planning and Management, 65(9), 1623–1644. https://doi.org/10.1080/09640568.2021.1905482

[32] Kotsantonis, S., Pinney, C., & Serafeim, G. (2022). ESG integration and sustainability reporting: Current trends and challenges. Accounting, Auditing & Accountability Journal, 35(7), 1483–1505. https://doi.org/10.1108/AAAJ-09-2021-5407

[33] Li, X., Zhang, Y., & Huang, J. (2024). Environmental compliance, internal efficiency, and market valuation: Evidence from Chinese firms. Journal of Environmental Economics and Policy, 16(1), 59–77.

[34] Liu, Q., Zhang, M., & He, Y. (2022). Regulatory disclosure, violation reports, and financial performance: A PSM-DID analysis of Chinese A-share firms. China Journal of Environmental Policy Studies, 14(2), 211–230.

[35] Moses, O., Oladele, F., & Akintoye, R. (2019). Environmental audits and corporate compliance in Nigeria. Journal of Environmental Compliance, 10(3), 89–108. https://doi.org/10.1080/JEC-2019-0034

[36] Nawaiwu, C., & Okoh, L. (2025). Audit disclosures and stakeholder value: Evidence from Delta State, Nigeria. International Journal of Accounting and Corporate Reporting, 11(1), 57–76.

[37] National Environmental Standards and Regulations Enforcement Agency [NESREA]. (2022). Environmental audit guidelines. National Environmental Standards and Regulations Enforcement Agency. https://nesrea.gov.ng

[38] Novatia Consulting. (2023). Environmental risk assessment in emerging markets: Nigeria case study. Novatia Consulting Reports. https://novatiaconsulting.com

[39] Obiora, F., & Ijoma, E. (2022). Sustainability reporting and financial performance of Nigerian deposit money banks. Journal of Accounting and Taxation, 14(2), 23–38. https://doi.org/10.5897/JAT2022.0456

[40] Okafor, C., & Chukwu, J. (2022). Risk assessment and profitability outcomes in Nigerian manufacturing firms. Journal of African Accounting and Management Studies, 9(4), 301–322.

[41] Okafor, F., & Eze, V. (2023). Environmental violations, investor confidence, and financial performance in Nigerian manufacturing firms: A SEM approach. West African Journal of Sustainability and Finance, 5(2), 102–121.

[42] Omokaro, A., & Oba, P. (2022). Legitimacy theory and environmental disclosures in emerging economies. International Journal of Accounting and Governance, 17(1), 33–51. https://doi.org/10.1108/IJAG-11-2021-0089

[43] Omotilewa, O., Eze, C., & Akinyemi, B. (2024). Stakeholder engagement and environmental audit effectiveness in Nigerian manufacturing firms. Fuoye Journal of Accounting and Management, 12(2), 88–105.

[44] Onoh, F., Enang, B., & Efanga, N. (2025). Risk assessment and corporate performance in North-Central Nigerian manufacturing firms. Nigerian Journal of Business and Management Research, 10(1), 144–161.

[45] Onyebuenyi, S., & Ofoegbu, C. (2022). Sustainability reporting, regulatory compliance, and organizational performance in sub-Saharan Africa. African Journal of Accounting and Sustainable Practices, 3(2), 121–148.

[46] Prashar, A. (2023). Sustainability reporting and corporate performance: A meta-analytic review using Hedges & Olkin’s method. Journal of Cleaner Production, 412, 137–159.

[47] Tanko, A., & Okafor, L. (2024). Environmental risk management, sustainability reporting, and firm performance in Nigeria. Journal of Environmental Risk Studies, 8(3), 123–140. https://doi.org/10.1108/JERS-2024-0045

[48] United Nations Global Compact. (2023). Business and sustainability in the postpandemic era. United Nations Global Compact.

[49] Uwalomwa, U., Erin, O., & Obarakpo, T. (2023). Environmental compliance and firm value in Nigeria. Journal of Sustainable Finance & Investment, 13(2), 261–279. https://doi.org/10.1080/20430795.2022.2066879

[50] Uwuigbe, U., & Jimoh, T. (2023). AI-assisted environmental audits: Error reduction and cost implications. Journal of Technology in Auditing and Sustainability, 2(2), 41–59.

[51] Whelan, T., Atz, U., & Clark, G. L. (2021). ESG and financial performance: Aggregated evidence from 1,000+ studies. NYU Stern Center for Sustainable Business Review, 1–28.

[52] Yau, F., Wong, C., & Rahim, R. (2024). Environmental disclosure and firm value: Evidence from South Africa and Ghana. Journal of Sustainable Finance & Investment, 14(2), 189–208. https://doi.org/10.1080/20430795.2023.2241186

[53] World Bank. (2023a). Enhancing environmental disclosure and risk management in emerging markets. World Bank Reports. https://www.worldbank.org

[54] World Bank. (2023b). Environmental risk management and corporate disclosure in emerging markets. World Bank Publications.

@article{1714859,
      author = {Samson Ojeme Samuel, Olugbenga Jinadu, David Adelagun Ajayi, Henry Kehinde Fasua},
      title = {Environmental Audit and Corporate Performance of Listed Manufacturing Companies: An Emerging Market Experience},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {9},
      number = {9},
      pages = {669-681},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1714859.pdf},
      abstract = {This study investigates the effect of environmental audit practices on the corporate performance of listed manufacturing companies in Nigeria. Specifically, it examines whether corporate performance can be influenced by environmental compliance (environmental violation report and regulation compliance) and environmental risk management (risk assessment and risk disclosure) practices. The annual reports and corporate websites covering 2014 to 2024 of listed manufacturing companies are the main sources of secondary data. Descriptive and inferential statistics were engaged using the panel estimation technique with the application of fixed effects to test the significant impacts of the variables. The results showed that regulatory compliance, risk assessment, and risk disclosure exhibited significant positive effects on corporate performance. However, the environmental violation report was statistically insignificant. Overall, environmental audits enhanced the performance and operational efficiency of listed companies in Nigeria. The study recommends that manufacturing companies should institutionalize internal compliance monitoring systems and integrate environmental risk assessment into enterprise risk management frameworks to enhance the quality of environmental audit and performance.},
      keywords = {Corporate Performance, Environmental Violation Report, Regulation Compliance, Risk Assessment, Risk Disclosure},
      month = {March},
      doi = {https://doi.org/10.64388/IREV9I9-1714859}
  }