ABSTRACT
Environmental issues have emerged in recent decades as a major aspect of the discussion of the
problems of economic growth and development. Environmental problems associated with
industrial activities in the final decades of the last century have heightened public concerns about the non-financial performance of corporations and increased pressure for the disclosure of environmental information. Over the past decades, there have been plethoras of literature on
corporate environmental disclosures, including studies majorly from developed countries, while
the same is not true of developing countries, particularly Nigeria. Moreso, while there is an
extensive research on the role of the Global Reporting Initiative and the International
Organization for Standardization (ISO) guidelines in determining corporate environmental
performance indicators and the extent of disclosures in annual report in developed economies, in contrast, there is a dearth of studies conducted in the context of developing economies. To this end, this research investigated the extent and nature of corporate environmental reporting
practice among listed firms in Nigeria and South Africa. Also, using the stakeholder theory as
motivation for corporate environmental disclosures, the research examined the perception lobby
groups on the disclosure of environmental performance information and the corporate
relationship with host community. To achieve this, a grand total of 900 copies of questionnaire
were distributed among members of the selected state/provinces using the Yaro Yamani sample
selection formula in determine the sample size of the study. In addition, while the content
analysis technique was used as a basis for eliciting data from the annual report and corporate
websites of the selected companies, the multiple regression method of data analysis was used to
investigate the relationships that exist between operating performance, financial leverage
(nature), size of firms‟ and the level of corporate environmental disclosure among the selected
listed firms in Nigeria and South Africa. The research as part of its findings observed that there is a significant positive relationship between the operating performance, size of firms and the level of corporate environmental disclosures among selected firms in Nigeria. This is however
consistent with existing prior studies. The study also observed that a significant negative
relationship exists between the financial leverage of firms (proxied by debt -to-equity ratio) and the extent of corporate environmental disclosure. The study therefore concludes that despite the disclosure level noticed among firms, corporate environmental reporting practice in developing countries like Nigeria and South Africa is still very adhoc, general, self-laudatory and voluntary in nature.
TABLE OF CONTENT
Title Page -------------------------------------------------------------- i
Declaration-------------------------------------------------------------- ii
Certification------------------------------------------------------------ iii
Dedication-------------------------------------------------------------- iv
Acknowledgements-------------------------------------------------------- v
Abstract---------------------------------------------------------------- vi
Table of Content---------------------------------------------------------- vii
List of Tables------------------------------------------------------------ viii
List of Figures------------------------------------------------------------ ix
Appendices-------------------------------------------------------------- x
Acronyms and Definitions-------------------------------------------------- xiCHAPTER ONE: Introduction10 Background of the Study-------------------------------------------------- 1
11 Statement of Research Problem---------------------------------------- 5
12 Objectives of Study-------------------------------------------------- 8
13 Research Questions------------------------------------------------------------------ 9
14 Research Hypotheses------------------------------------------------------------------ 9
15 Significance of the Study-------------------------------------------- 10
16 Justification of Study------------------------------------------------ 11
17 Scope and Limitation of Study------------------------------------------ 11
18 Summary of Research Methodology------------------------------------ 14
19 Sources of Data ---------------------------------------------------- 15
CHAPTER TWO: Literature Review and Theoretical Framework20 Introduction ------------------------------------------------------ 23
21 The Concept of Social Responsibility Accounting and Environmental
Accounting-------------------------------------------------------- 23
22 What is Environmental Accounting------------------------------------ 25
23 The Emergence of Environmental Accounting---------------------------- 28
24 Scope of Environmental Accounting------------------------------------ 30
25 What are Environmental Costs------------------------------------------ 31
25
1 Identification of Environmental Costs---------------------- 31
26 Corporate Environmental Reporting------------------------------------ 35
261 Types of Environmental Reporting-------------------------- 39
262 The Principles of Environmental Reporting-------------------- 41
263 Why voluntary environmental reporting---------------------- 43
27 Global Environmental Reporting Practices-------------------------------- 45
271 Environmental Reporting Development in Europe-------------- 46
272 North American Environmental Reporting Practice-------------- 48
273 The Asian Experience in Environmental Reporting------------ 50
274 The Development of Environmental Reporting in-Australia------ 50
275 Environmental reporting in African Continent---------------- 52
276 The Nigerian Scenario------------------------------------ 52
277 Historical Background on Environmental Regulation in Nigeria-and Firms‟ Attitude-------------------------------------------------- 54
278 Environmental Waste Management Laws in Nigeria------------ 56
279 The Nigerian Environmental Laws / Regulations and the
Prescribed Sanctions---------------------------------- 56
280 The South African Scenario------------------------------ 59
29 Prior Research on Company Characteristics & Corporate Environmental
Reporting-------------------------------------------------------- 60
210 Theoretical Framework-------------------------------------------------------------- 77
2101 Framework for Environmental Reporting-------------------------- 77
2102 Political Economy Theory------------------------------------------ 78
2103 Legitimacy Theory-------------------------------------------------- 81
2104 Stakeholder Theory------------------------------------------------ 85
2105 Stakeholder Theory and Corporate Environmental
Reporting----------------------------------------------90
2106 Environmental Disclosures and Relevant Financial Reporting-Standards-------------------------------------------- 91
2107 Environmental Performance Indicators-------------------- 97
2108 Types Environmental Performance Indicators-------------- 98
2109 Overview of ISO-------------------------------------- 101
CHAPTER THREE: Research Methods30 Introduction-------------------------------------------------------- 127
31 Research Design---------------------------------------------------- 127
32 Study Population-------------------------------------------------- 129
33 Sample Size and Sampling Technique for Secondary Data-------------------- 129
34 Sample Size and Sampling Technique for Primary Data------------------------ 130
35 Data Gathering Method---------------------------------------------- 131
351 Sources of Data---------------------------------------- 131
352 Research Instruments------------------------------------ 132
353 Validity and Reliability of Instrument------------------------ 135
354 Actual Field Work and Administration of Questionnaire
Instruments-------------------------------------------- 136
355 Method of Presentation---------------------------------- 137
36 Data Analysis Method------------------------------------------------ 137
CHAPTER FOUR: Data Analysis and Result Presentation40 Introduction------------------------------------------------------ 148
41 Data Presentation and Analysis------------------------------------------------------ 148
411 Results on Incidence of Corporate Environmental Disclosure
---------------------------------------------------- 149
412 Content â€"Category Themes of Corporate Environmental
Disclosure---------------------------------------------------- 151
413 Content-Category Disclosure of Environmental-Information by Evidence-------------------------------- 154
414 Content-Category Disclosure of Environmental-Information by Location-------------------------------------------- 157
415 Content-Category Disclosure of Environmental-Information by News-Type-------------------------------- 158
42 Data Analysis-------------------------------------------------------- 159
421 Descriptive statistics on the level of Corporate Environmental
Disclosure between Nigerian and South African firms-------- 159
422 Impact of Size, Operating Performance and Nature of -Firms on Level of Corporate Environmental Disclosure -------- 160
423 Overall Findings from the Two Countries-------------------- 160
424 Descriptive Statistics for Averaged ROTA, D/E Ratio,
Size and EDISC for Selected firms in Nigeria---------------------- 161
425 Descriptive Statistics for Averaged ROTA, D/E Ratio,
Size and EDISC for Selected Firms in South Africa---------------- 162
426 Correlation Coefficient Analysis of the Relationship between the-averaged ROTA, D/E Ratio, Size and EDISC for firms in
Nigeria1----------------------------------------------164
427 Correlation Coefficient Analysis of the Relationship between
the averaged ROTA, D/E Ratio, Size and EDISC for firms in
South Africa--------------------------------------------167
428 Regression Analysis Results---------------------------------------- 168
43 Presentation of Survey Results------------------------------------------------------ 170
431 Personal Bio-Data of Respondents-------------------------- 172
432 Descriptive Statistics of Respondents-------------------------------- 175
433 Reponses on Environmental Regulation/Protection------------ 176
434 Reponses on Firms‟ Environmental Disclosure Level---------- 178
435 Reponses on Respondents on ED as it Influence the activities of-Lobby Groups------------------------------------------ 182
44 Hypotheses Testing------------------------------------------------ 186
CHAPTER FIVE: Summary of Findings, Conclusion and Recommendations50 Introduction------------------ ------------------------------------------------------ 194
51 Summary of Work Done-------------------------------------------- 194
52 Summary of Findings------------------------------------------------ 195
521 Theoretical Findings------------------------------------ 195
522 Empirical Findings-------------------------------------------------- 197
53 Conclusion-------------------------------------------------------------------------- 202
54 Recommendations and Implication of study------------------------------203
55 Contribution to Knowledge-------------------------------------------------------- 207
References-------------------------------------------------------------- 210
LIST OF TABLES
Table 20 Oil Spillage Data in Nigeria (Niger Delta)--------------------------54
Table 40 Industry Based Analysis on Averaged Environmental Disclosure for -Selected Firms in Nigeria-------------------------------------- 150
Table 41 Industry Based Analysis on Averaged Environmental Disclosure for -Selected Firms in South Africa---------------------------------- 151
Table 42 Averaged Content-Category Theme of Environmental Disclosure for-Selected Industries in Nigeria-------------------------------- 153
Table 43 Averaged Content-Category Theme of Environmental Disclosure for-Selected Industries in South Africa------------------------------ 154
Table 44 Descriptive Statistics for Content Category of Themes Disclosure------------ 154
Table 45 Averaged Content-Category Disclosures by Evidence for Selected -Industries in Nigeria------------------------------------------ 156
Table 46 Averaged Content-Category Disclosures by Evidence for Selected -Industries in South Africa-------------------------------------- 156
Table 47 Averaged Content-Category Disclosures by Location for Selected -Industries in Nigeria & South Africa------------------------------ 157
Table 48 Averaged Content-Category Disclosures by News Type for Selected-Industries in Nigeria & South Africa------------------------------ 158
Table 49 Z-test Two Sample Means---------------------------------- 159
Table 410 Descriptive Statistics for selected Nigerian firms-------------------- 162
Table 411 Descriptive Statistics for selected South African firms---------------- 164
Table 412 Classification of Correlation------------------------------------ 164
Table 413 Correlations (Pearson) for Selected Listed Firms in Nigeria------------ 166
Table 414 Correlations (Pearson) for selected firms in South Africa-------------- 168
Table 415 Summarized Regression Results on the Relationship between Size,
Operating Performance and the Nature of firms on the level of
Corporate Environmental Disclosure from both Countries------------ 170
Table 416(a) Response to Questionnaire-------------------------------------- 171
Table 416(b) Summary of Questionnaire Administered-------------------------- 171
Table 417 Bio-Data of Respondents-------------------------------------- 173
Table 418 Distribution of Respondents on Environmental
Regulation/Protection------------------------------------------176
Table 419 Distribution of Respondents on Firms‟ Environmental Disclosure Level-- 179
Table 420 Distribution of Respondents in both countries on Environmental
Disclosure as it Influence the Activities of Lobby Groups--------------182
