1. bookVolume 9 (2021): Issue 1 (September 2021)
Journal Details
License
Format
Journal
eISSN
2360-0047
First Published
17 Oct 2014
Publication timeframe
1 time per year
Languages
English
access type Open Access

Environmental Responsiveness and Firm Value: Evidence from Nigeria

Published Online: 27 Sep 2021
Volume & Issue: Volume 9 (2021) - Issue 1 (September 2021)
Page range: 133 - 155
Journal Details
License
Format
Journal
eISSN
2360-0047
First Published
17 Oct 2014
Publication timeframe
1 time per year
Languages
English
Abstract

This paper examines the effects of environmental responsiveness on firm value in Nigeria and provides an insight into the feasibility of corporate entities engaging with the United Nations’ sustainable development agenda, without compromising their wealth creation agenda. Secondary data were gathered from annual reports and audited accounts of 83 quoted non-financial firms for three years covering the period of 2016–2018. Thereafter, a regression analysis using the Ohlson value relevant model for price valuation was done. Results of the empirical analysis confirm the positive influence of value relevance of book values, earnings per share, alongside environmental responsiveness and firm size on the firm value of Nigerian firms, while leverage is inversely related. Remarkably too, firms with higher values tend towards being environmentally responsive. Impliedly, there is an empirical evidence of reverse causality between firm value and environmental responsiveness.

Keywords

JEL Classification

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