EFFECTS OF ENVIRONMENTAL COSTS ON THE VALUE OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

Abstract

This study examines the impact of environmental costs on the value of listed industrial goods companies in Nigeria. A correlational research design was employed, analyzing nine listed companies over a ten-year period (2013–2022). The independent variable proxied by environmental pollution cost (EPC), environmental health and safety (EHS), and environmental waste management (EWM) were regressed against firm value, measured by Tobin’s Q. Data were sourced from audited annual reports. Multiple regression analysis revealed a positive and significant impact of EPC on firm value, while EHS and EWM had negative and significant impacts. The study recommends prioritizing EPC spending to enhance firm value while optimizing EHS and EWM expenditures.