ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

Copy igh © Au ho (s) 2025. All Righ s Rese ed. Published by GLOBAL PUBLICATION HOUSE. | In . Jou nal o Business Managemen
Page 01 o 47
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL
PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN
NIGERIA
By:
JAMES EDET EYAH
DEPARTMENT OF ACCOUNTING, AKWA IBOM STATE UNIVERSITY
EMMANUEL OKON EMENYI (PhD)
DEPARTMENT OF ACCOUNTING, AKWA IBOM STATE UNIVERSITY
[email p o ec ed] and emmanuelemen[email p o ec ed], 08030989037
UWEM ETIM UWAH (PhD)
DEPARTMENT OF ACCOUNTING, AKWA IBOM STATE UNIVERSITY
Abs ac
Despi e he e o s o he Nige ian go e nmen o p omo e en i onmen al sus ainabili y h ough egula ions and
policies, he le el o en i onmen al disclosu e o penal ies among lis ed indus ial goods i ms in Nige ia
emains a conce n. Based on his, he s udy examined he e ec o en i onmen al penal ies disclosu es on
inancial pe o mance o lis ed indus ial goods i ms in Nige ia. The s udy adop ed an ex-pos ac o esea ch
design and u ilized a panel da a o nine y (90) pooled obse a ions ga he ed om nine (9) lis ed indus ial goods
i ms in Nige ia o e en (10)-yea pe iod (2015-2024). The s udy adop ed mul iple linea eg ession o analyze
da a ia E- iews 10.0. The da a con o med o he s anda dized eg ession assump ions, ha is, linea i y,
homoscedas ici y, no mali y and independence o da a. The s udy indings e ealed ha emedia ion penal ies
disclosu e has a signi ican posi i e e ec {Coe = 0.1957 (0.0368)} on e u n on asse , epu a ional penal ies
disclosu e has a signi ican posi i e e ec {Coe = 0.1102 (0.0481)} on e u n on asse , was e penal ies
disclosu e has a signi ican posi i e e ec {Coe = 0.1980 (0.0082)} on e u n on asse , pollu ion le y
disclosu e has a non-signi ican nega i e e ec {Coe = -0.0944 (0.3545)} on e u n on asse and las ly,
en i onmen al s ingency index disclosu e has a signi ican posi i e e ec {Coe = 0.01291 (0.0071)} on e u n
on asse o lis ed indus ial goods i ms in Nige ia. I was concluded ha anspa ency in en i onmen al
epo ing, pa icula ly wi h ega ds o emedia ion, epu a ional, and was e penal ies, can lead o imp o ed
inancial pe o mance. The s udy also ecommended ha Fi ms should also p io i ize anspa ency in disclosing
epu a ional penal ies, as his can lead o imp o ed inancial pe o mance. This can be achie ed by including
in o ma ion on epu a ional isks and penal ies in hei annual epo s and sus ainabili y epo s, and by engaging
wi h s akeholde s o build us and c edibili y.
How o ci e: EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND
FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional
Jou nal o Business Managemen , 8(10), 01-47. h ps://doi.o g/10.5281/zenodo.17550414
ARTICLE ID: #02150
10.5281/ZENODO.17550414
VOLUME 08 ISSUE 09 SEPTEMBER - 2025
e-ISSN 3027-0537
p-ISSN 3027-0375
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
1.1 INTRODUCTION
En i onmen al Penal ies Disclosu e e e s o he p ac ice o publicly epo ing
ines, sanc ions, o penal ies imposed on a company o iola ing en i onmen al laws and
egula ions. En i onmen al penal ies disclosu e and inancial pe o mance o lis ed indus ial
goods i ms is a c i ical and complex in e sec ion o en i onmen al go e nance, co po a e
accoun abili y, and inancial sus ainabili y wi hin he con ex o a de eloping economy. The
inc easing awa eness o en i onmen al issues and he need o sus ainable de elopmen ha e
led o a g owing in e es in he en i onmen al pe o mance o companies. In Nige ia, he
en i onmen al challenges a e nume ous, anging om oil spills o de o es a ion, and he ole
o companies in add essing hese challenges canno be o e s a ed (Emenyi,2024)2.
Lis ed indus ial goods i ms in Nige ia, in pa icula , ha e a signi ican impac on he
en i onmen due o he scale and scope o hei ope a ions (Nkanga e al., 2023). The
Nige ian go e nmen has implemen ed a ious egula ions and policies aimed a p omo ing
en i onmen al sus ainabili y and educing en i onmen al deg ada ion. Fo ins ance, he
Na ional En i onmen al (En i Samuel, E. N., Emenyi, E O. and Uwah, U. E.
(2024).onmen al Impac Assessmen ) Regula ions, 1999, equi e companies o conduc
en i onmen al impac assessmen s and disclose in o ma ion abou hei en i onmen al
impac s (Ha i sa e al., 2022). Simila ly, he Nige ian Exchange Ma ke has in oduced
sus ainabili y disclosu e guidelines ha encou age lis ed companies o disclose in o ma ion
abou hei en i onmen al pe o mance and sus ainabili y p ac ices. Despi e hese e o s, he
le el o en i onmen al disclosu e among lis ed indus ial goods i ms in Nige ia emains a
conce n, and he impac o en i onmen al penal ies on hei inancial pe o mance is no well
unde s ood as posi ed by Nguyen, (2023).
The inancial pe o mance o lis ed indus ial goods i ms in Nige ia is in luenced by
a ious ac o s, including en i onmen al penal ies as opined by Emenyi and Okpokpo,
(2023). En i onmen al penal ies can ha e a signi ican impac on a company's inancial
pe o mance, as hey can esul in ines, penal ies, and epu a ional damage. Fu he mo e,
en i onmen al penal ies can also lead o inc eased cos s, such as he cos o cleaning up
con amina ed si es o he cos o implemen ing new en i onmen al managemen sys ems.
Omaliko e al., (2020) s a ed ha he ela ionship be ween en i onmen al penal ies disclosu e
and inancial pe o mance o lis ed indus ial goods i ms in Nige ia is complex and
in luenced by a ious ac o s. On one hand, en i onmen al penal ies disclosu e can ha e a
posi i e impac on a company's inancial pe o mance by p omo ing anspa ency and
accoun abili y. Rania and Dahlan, (2023) eco ded ha by disclosing in o ma ion abou
en i onmen al penal ies, companies can demons a e hei commi men o en i onmen al
sus ainabili y and educe he isk o epu a ional damage. On he o he hand, en i onmen al
penal ies disclosu e can also ha e a nega i e impac on a company's inancial pe o mance by
inc easing cos s and educing p o i abili y. The e o e, i is essen ial o in es iga e he
ela ionship be ween en i onmen al penal ies disclosu e and inancial pe o mance o lis ed
indus ial goods i ms in Nige ia o unde s and he implica ions o en i onmen al penal ies
disclosu e on inancial pe o mance (Ezeagba e al. 2017).
Acco ding o Aslam e al. (2021), he nexus be ween en i onmen al penal ies
disclosu e and inancial pe o mance o lis ed indus ial goods i ms in Nige ia is essen ial
o a ious s akeholde s, including in es o s, egula o s, and policymake s. Emenyi, (2024)1
epo ed ha unde s anding he impac o en i onmen al penal ies disclosu e on inancial
pe o mance, in es o s can make in o med decisions abou hei in es men s, egula o s can
de elop e ec i e egula ions o p omo e en i onmen al sus ainabili y, and policymake s can
Page No. 02
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
de elop policies o suppo companies in educing hei en i onmen al impac s. Fu he mo e,
he s udy can also p o ide insigh s in o he en i onmen al pe o mance o lis ed indus ial
goods i ms in Nige ia and he e ec i eness o en i onmen al egula ions in p omo ing
en i onmen al sus ainabili y as suppo ed by Nangih e al. (2022).
1.2 S a emen o he p oblem
The ailu e o lis ed indus ial goods i ms in Nige ia o adequa ely disclose
en i onmen al penal ies has c ea ed a dange ous p eceden o co po a e i esponsibili y,
weakening in es o con idence and wo sening en i onmen al deg ada ion. While
en i onmen al penal ies a e mean o hold i ms accoun able o pollu ion and unsus ainable
p ac ices, many companies ei he unde epo o comple ely conceal hese ines, p e en ing
s akeholde s om assessing hei ue inancial and en i onmen al isks (Eneh, 2020). This
lack o anspa ency has allowed co po a ions o con inue ope a ing wi h impuni y, leading o
inc eased indus ial was e, ai and wa e pollu ion, and long- e m damage o public heal h.
Ins ead o en o cing s ic e egula ions, weak go e nance s uc u es and co up o e sigh
ha e enabled i ms o e ade accoun abili y, ul ima ely causing inancial ins abili y in he
indus ial sec o and discou aging o eign in es men (Simeon, e . al 2024). Wi h he
Nige ian economy al eady s uggling unde he weigh o poo egula o y en o cemen , he
concealmen o en i onmen al penal ies u he e odes public us , limi s economic
sus ainabili y, and places an un ai bu den on communi ies su e ing om en i onmen al
haza ds. Wi hou immedia e e o ms in disclosu e p ac ices, he inancial pe o mance o
hese i ms may de e io a e, leading o wide economic epe cussions ha could c ipple he
coun y’s indus ial g ow h.
Un o una ely, despi e he e o s o he Nige ian go e nmen o p omo e
en i onmen al sus ainabili y h ough egula ions and policies, he le el o en i onmen al
disclosu e o penal ies among lis ed indus ial goods i ms in Nige ia emains a conce n. The
p oblem associa ed wi h en i onmen al penal ies disclosu e and inancial pe o mance o
lis ed indus ial goods i ms in Nige ia e ol es a ound he p essing issues a he in e sec ion
o en i onmen al accoun abili y, egula o y compliance, and inancial sus ainabili y as
explained by (Udomah, & Emenyi,2023). Acco ding o Emenyi (2024)2, he lack o
anspa ency and accoun abili y in en i onmen al disclosu e among lis ed indus ial goods
i ms in Nige ia is a signi ican p oblem. Many o hese companies do no disclose
in o ma ion abou hei en i onmen al impac s, including en i onmen al penal ies, ines, and
sanc ions. This lack o disclosu e makes i di icul o s akeholde s, including in es o s,
egula o s, and policymake s, o assess he en i onmen al pe o mance o hese companies
and he po en ial isks associa ed wi h hei en i onmen al impac s (Zhou e al., 2024).
Samuel, e . al., (2024) x- ayed ha he p oblem o en i onmen al penal ies disclosu e
and p o i abili y o lis ed indus ial goods i ms is u he complica ed by he lack o e ec i e
egula ions and en o cemen mechanisms. While he Nige ian go e nmen has implemen ed
a ious egula ions and policies aimed a p omo ing en i onmen al sus ainabili y, he
en o cemen o hese egula ions is o en weak, which can lead o non-compliance and
en i onmen al deg ada ion as p opounded by (Lee, 2020). Fu he mo e, he lack o e ec i e
egula ions and en o cemen mechanisms can also make i di icul o s akeholde s o hold
companies accoun able o hei en i onmen al impac s, which can pe pe ua e he p oblem o
en i onmen al deg ada ion (Hanjani & Kusumadewi, 2023). The e o e, i is essen ial o
in es iga e he ela ionship be ween en i onmen al penal ies disclosu e and inancial
pe o mance o lis ed indus ial goods i ms in Nige ia o unde s and he implica ions o
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
en i onmen al penal ies disclosu e on inancial pe o mance and o iden i y s a egies o
p omo ing en i onmen al sus ainabili y and educing en i onmen al deg ada ion.
1.3 Objec i es o he s udy
The main objec i e o his s udy was o de e mine he e ec o En i onmen al
penal ies disclosu es on inancial pe o mance o lis ed indus ial goods i ms in Nige ia.
Howe e , he speci ic objec i es we e:
1. To asce ain he e ec o emedia ion penal ies disclosu es on e u n on asse o
lis ed indus ial goods i ms in Nige ia.
2. To e alua e he e ec o epu a ional penal ies disclosu es on e u n on asse o
lis ed indus ial goods i ms in Nige ia.
3. To de e mine he e ec o was e penal ies disclosu es on e u n on asse o lis ed
indus ial goods i ms in Nige ia.
4. To assess he e ec o pollu ion le y disclosu es on e u n on asse o lis ed
indus ial goods i ms in Nige ia.
5. To examine he e ec o en i onmen al s ingency index disclosu es on e u n on
asse o lis ed indus ial goods i ms in Nige ia.
1.4 Resea ch ques ions
The ollowing ques ions we e o mula ed:
1. To wha ex en does emedia ion penal ies a ec e u n on asse o lis ed indus ial
goods i ms in Nige ia?
2. To wha magni ude does epu a ional penal ies a ec e u n on asse o lis ed
indus ial goods i ms in Nige ia?
3. To wha ex en does was e penal ies disclosu e a ec e u n on asse o lis ed
indus ial goods i ms in Nige ia?
4. To wha ex en does pollu ion le y a ec e u n on asse o lis ed indus ial goods
i ms in Nige ia?
5. To wha magni ude does en i onmen al s ingency index a ec e u n on asse o
lis ed indus ial goods i ms in Nige ia?
1.5 Resea ch hypo heses
To answe he ques ions abo e, he ollowing hypo heses we e o mula ed and es ed;
Ho1: The e is no signi ican e ec be ween emedia ion penal ies disclosu e and
e u n on asse o lis ed indus ial goods i ms in Nige ia.
Ho2: Repu a ional penal ies disclosu e has no signi ican e ec wi h e u n on asse
o lis ed indus ial goods i ms in Nige ia.
Ho3: No signi ican e ec exis be ween was e penal ies disclosu e and e u n on
asse o lis ed indus ial goods i ms in Nige ia.
Ho4: No signi ican e ec exis be ween pollu ion le y disclosu e and e u n on
asse o lis ed indus ial goods i ms in Nige ia.
Ho5: No signi ican e ec exis be ween en i onmen al s ingency index and e u n
on asse o lis ed indus ial goods i ms in Nige ia.
1.6 Scope o he s udy
Con en scope: This s udy examined he e ec o en i onmen al penal ies disclosu e
on inancial pe o mance o lis ed indus ial goods i ms in Nige ia. The independen a iable
(en i onmen al penal ies disclosu e) was p oxies by emedia ion penal ies disclosu e,
Page No. 04
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
epu a ional penal ies disclosu e and was e penal ies disclosu e, pollu ion le y disclosu e and
en i onmen al s ingency index. Howe e , he dependen a iable ( inancial pe o mance)
was p oxied by e u n on asse (ROA).
Geog aphical scope: This s udy cen ed on lis ed indus ial goods i ms on he loo o he
Nige ian exchange g oup (NGX) o he pe iod o 10 yea s, ha is om 2015 o 2024.
Uni scope: The uni o analysis o his wo k comp ised o hi een (13) indus ial goods
i ms lis ed on he loo o he Nige ian exchange g oup (NGX).
REVIEW OF RELATED LITERATURE
This sec ion e iewed he ex an li e a u e ela ed o his s udy. Howe e , i comp ises
o concep ual amewo k, heo e ical amewo k as well as empi ical e iew.
2.1 Concep ual amewo k
The concep ual amewo k o a iables adop ed in he s udy is as depic ed in igu e 2.1
below:
Independen a iable Dependen a iable
(En i onmen al penal ies disclosu e) (Financial pe o mance)
2.1: In e ela ionships o a iables
Sou ce: Resea che ’s concep ualiza ion, (2025).
2.1.1 En i onmen al penal ies disclosu es
En i onmen al penal ies disclosu e e e s o he p ac ice o companies disclosing
in o ma ion abou en i onmen al penal ies, ines, and sanc ions imposed on hem by
egula o y au ho i ies. This disclosu e is ypically made in a company's annual epo s,
sus ainabili y epo s, o o he publicly a ailable documen s. The pu pose o en i onmen al
penal ies disclosu e is o p o ide s akeholde s, including in es o s, cus ome s, and egula o s,
Re u n on Asse
(ROA)
Remedia ion penal ies
disclosu e
Repu a ional penal ies disclosu e
Pollu ion le y disclosu e
Was e penal ies disclosu e
En i onmen al s ingency index
disclosu es

EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
wi h in o ma ion abou a company's en i onmen al pe o mance and compliance wi h
en i onmen al egula ions (Deswan o & Si ega , 2018). This in o ma ion can be used o
assess a company's en i onmen al isk p o ile, i s commi men o en i onmen al
sus ainabili y, and i s abili y o manage en i onmen al isks (Emenyi & Okpokpo, 2023).
En i onmen al penal ies disclosu e can ake many o ms, including he disclosu e o
speci ic en i onmen al penal ies, ines, and sanc ions imposed on a company, as well as he
disclosu e o mo e gene al in o ma ion abou a company's en i onmen al pe o mance and
compliance wi h en i onmen al egula ions. Fo example, a company may disclose
in o ma ion abou i s en i onmen al policies and p ocedu es, i s en i onmen al aining
p og ams, and i s en i onmen al audi ing and moni o ing p ac ices as illus a ed by
(Gunawan & Lina, 2015). Howe e , he Nige ian Exchange G oup (NGX) has in oduced
sus ainabili y disclosu e guidelines ha encou age lis ed companies o disclose in o ma ion
abou hei en i onmen al pe o mance and sus ainabili y p ac ices. Addi ionally, he
Na ional En i onmen al (En i onmen al Impac Assessmen ) Regula ions, 1999, equi e
companies o conduc en i onmen al impac assessmen s and o disclose in o ma ion abou
hei en i onmen al impac s (Udomah, & Emenyi,2023).
Nguyen (2023), concluded ha en i onmen al penal ies disclosu e is an impo an
aspec o co po a e sus ainabili y epo ing, as i p o ides s akeholde s wi h aluable
in o ma ion abou a company's en i onmen al pe o mance and isk p o ile. While he e a e
limi a ions o en i onmen al penal ies disclosu e, i can help o p omo e anspa ency and
accoun abili y in co po a e en i onmen al p ac ices and encou age companies o adop mo e
sus ainable en i onmen al p ac ices.
1.2 Remedia ion penal ies disclosu e
Remedia ion penal ies disclosu e e e s o he p ac ice o companies disclosing
in o ma ion abou penal ies, ines, and sanc ions imposed on hem by egula o y au ho i ies
o en i onmen al emedia ion- ela ed non-compliance. En i onmen al emedia ion e e s o
he p ocess o cleaning up con amina ed si es, such as soil, g oundwa e , and su ace wa e , o
p e en ha m o human heal h and he en i onmen (Rania & Duhlan, 2023). Remedia ion
penal ies disclosu e is an impo an aspec o en i onmen al epo ing, as i p o ides
s akeholde s wi h in o ma ion abou a company's en i onmen al pe o mance and compliance
wi h en i onmen al egula ions. This in o ma ion can be used o assess a company's
en i onmen al isk p o ile, i s commi men o en i onmen al sus ainabili y, and i s abili y o
manage en i onmen al isks as posi ed by Emenyi (2024)1 and Emenyi (2024)2
Wang e al. (2023) s a ed ha emedia ion penal ies disclosu e ypically includes
in o ma ion abou he ype and amoun o emedia ion penal ies incu ed, he easons o he
penal ies, and he s eps aken by he company o p e en simila penal ies in he u u e. This
in o ma ion may be disclosed in a company's annual epo s, sus ainabili y epo s,
en i onmen al epo s, o o he publicly a ailable documen s. The disclosu e o emedia ion
penal ies can p o ide aluable insigh s in o a company's en i onmen al pe o mance and
compliance wi h en i onmen al egula ions. Fo example, i a company discloses ha i has
incu ed signi ican emedia ion penal ies due o non-compliance wi h en i onmen al
egula ions, his may indica e ha he company has a poo en i onmen al ack eco d and
may be a isk o incu ing addi ional penal ies in he u u e (Xin e al., 2022).
Remedia ion penal ies disclosu e can also be used o assess a company's inancial
pe o mance and epu a ion. Fo example, i a company incu s signi ican emedia ion
penal ies, his may nega i ely impac i s inancial pe o mance and epu a ion. On he o he
hand, i a company discloses ha i has implemen ed e ec i e en i onmen al managemen
sys ems and p ocedu es, his may posi i ely impac i s inancial pe o mance and epu a ion
(Rania & Duhlan, 2023). In Nige ia, he disclosu e o emedia ion penal ies is no manda o y
Page No. 06
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
o lis ed companies. Howe e , he Nige ian Exchange G oup (NGX) has in oduced
sus ainabili y disclosu e guidelines ha encou age lis ed companies o disclose in o ma ion
abou hei en i onmen al pe o mance and sus ainabili y p ac ices (Bao & Yu, 2023).
Addi ionally, he Na ional En i onmen al (En i onmen al Impac Assessmen ) Regula ions,
(1999) equi e companies o conduc en i onmen al impac assessmen s and o disclose
in o ma ion abou hei en i onmen al impac s (Aslam, e al., 2021). A s udy by Ding and
Shahzad, (2022) e ealed ha emedia ion penal ies disclosu e is an impo an aspec o
en i onmen al epo ing, as i p o ides s akeholde s wi h in o ma ion abou a company's
en i onmen al pe o mance and compliance wi h en i onmen al egula ions.
2.1.3 Repu a ional penal ies disclosu e
Repu a ional penal ies disclosu e e e s o he ac o publicly acknowledging o
disclosing nega i e e en s, ac ions, o consequences ha ha e damaged a company's
epu a ion. This ype o disclosu e in ol es openly communica ing inciden s such as e hical
lapses, compliance ailu es, en i onmen al iola ions, aud, o misconduc ha ha e he
po en ial o a nish a company's b and image, c edibili y, and us wo hiness in he eyes o
s akeholde s, including cus ome s, in es o s, employees, egula o s, and he gene al public
(Wu & Xu, 2024). Repu a ional penal ies disclosu e plays a c ucial ole in shaping he
inancial pe o mance o lis ed indus ial goods i ms in Nige ia. When companies openly
communica e abou epu a ional penal ies esul ing om en i onmen al misconduc o non-
compliance, i can ha e p o ound implica ions on s akeholde pe cep ions, b and image, and
ma ke alue (He e al., 2018). The e ela ion o such penal ies can lead o e osion o us
among in es o s, cus ome s, and he b oade communi y, ul ima ely impac ing he i m's
bo om line as deposi ed by Emenyi (2024)2. Emenyi and Okpokpo, (2023) eco ded ha by
disclosing epu a ional penal ies, i ms signal hei commi men o e hical p ac ices and
accoun abili y, which can help ebuild us , es o e c edibili y, and sa egua d long- e m
ela ionships wi h s akeholde s.
Repu a ional penal ies disclosu e can d i e o ganiza ional change and s a egic
decision-making wi hin lis ed indus ial goods i ms in Nige ia. Companies ha openly
acknowledge epu a ional penal ies and ake p oac i e s eps o add ess hem a e mo e likely
o in es in sus ainable p ac ices, e hical go e nance, and social esponsibili y ini ia i es.
Such ini ia i es no only help mi iga e epu a ional isks bu also enhance b and esilience,
cus ome loyal y, and compe i i eness in he ma ke (Lee, 2020). Th ough in eg a ing
epu a ional penal ies disclosu e in o hei co po a e epo ing p ac ices, indus ial goods
i ms can demons a e hei commi men o anspa ency, in eg i y, and long- e m alue
c ea ion, he eby os e ing a posi i e epu a ion ha unde pins inancial pe o mance and
sus ainable g ow h (Hanjani & Kusumadewi, 2023).
2.1.4 Was e penal ies disclosu e
Was e penal ies disclosu e e e s o he p ac ice o companies disclosing
in o ma ion abou penal ies, ines, and sanc ions imposed on hem by egula o y au ho i ies
o non-compliance wi h was e managemen egula ions. This disclosu e ypically includes
in o ma ion abou he ype and amoun o was e penal ies incu ed, he easons o he
penal ies, and he s eps aken by he company o p e en simila penal ies in he u u e (Wang
e al. 2019). The disclosu e o en i onmen al penal ies, speci ically was e penal ies, can ha e
a signi ican impac on he inancial pe o mance o lis ed indus ial goods i ms in Nige ia.
When companies a e anspa en abou he penal ies hey incu due o imp ope was e
managemen p ac ices, i can in luence in es o pe cep ions, s akeholde us , and ul ima ely
inancial ou comes (Ma e al.2022).
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
Mo eo e , was e penal ies disclosu e can also d i e changes in co po a e beha io and
encou age imp o emen s in was e managemen p ac ices. Companies ha openly
communica e abou he penal ies hey ace o en i onmen al iola ions a e mo e likely o
in es in sus ainable p ac ices, adop was e educ ion s a egies, and enhance hei
en i onmen al pe o mance o e all (Chinedu & Ogochukwu, 2020). Such p oac i e measu es
no only mi iga e he isk o u u e penal ies bu also con ibu e o long- e m cos sa ings,
ope a ional e iciency, and compe i i eness. The e o e, was e penal ies disclosu e se es as a
ca alys o p omo ing en i onmen al s ewa dship, d i ing posi i e o ganiza ional change,
and ul ima ely enhancing he inancial pe o mance o indus ial goods i ms in Nige ia
(Dzomonda & Fa oki, 2020).
2.1.5 Pollu ion le y disclosu es
Pollu ion le y disclosu es simply mean companies elling he public abou he money
hey pay o migh ha e o pay because o pollu ion o example, ines, axes, o ees o
b eaking en i onmen al ules. When a ac o y o i m spills was e, emi s oo much smoke, o
b eaks o he en i onmen al laws, he go e nmen may cha ge i a pollu ion le y o ine. I he
company w i es his in o ma ion in i s epo s, in es o s, cus ome s, and communi ies can see
how much he company is being punished and how i is managing he p oblem. S udies show
ha when i ms a e ined o ace g een axes, hey o en espond by sha ing mo e
en i onmen al in o ma ion (Shao e al., 2025; Hu & Xu, 2025). In Nige ia, esea ch also
inds ha g een axes and o he le ies can push i ms o eco d and epo en i onmen al
cos s mo e clea ly (Bala e al., 2024). In sho : pollu ion le y disclosu es a e a way o
companies o be hones abou he cos and isk o pollu ion, and his hones y can change how
people see and us hem.
Telling he u h abou pollu ion bills ma e s o he company’s money oo. I a
company is open abou ines and en i onmen al cos s, in es o s may judge i mo e ai ly
some imes he company’s alue alls i he ines a e la ge, bu some imes anspa ency leads
o be e long- e m us and e en mo e inno a ion o educe pollu ion (Peng e al., 2023).
Resea ch inds ha penal ies can igge i ms o imp o e hei en i onmen al p ac ices o
in es in g een echnology, hough he e ec can be sho -li ed o depend on he company’s
size and esou ces (MDPI Sus ainabili y s udy, 2024; Shao e al., 2025). Fo a common
pe son: when a lis ed indus ial i m in Nige ia shows i s pollu ion ines clea ly, i helps he
public and in es o s see eal cos s and isks and i can make he i m ei he pay mo e in he
sho un o wo k ha de o pollu e less in he long un (Bala e al., 2024).
2.1.6 En i onmen al s ingency index disclosu es
En i onmen al s ingency index disclosu es a e when people o companies alk abou
how s ic he ules a e ha he go e nmen uses o p o ec he en i onmen , and wha hose
ules mean o business (Lee & Song, 2024). Think o he en i onmen al policy s ingency
index as a single numbe ha shows how ough a coun y’s en i onmen al laws a e ( o
example, how high pollu ion axes a e, how s ic emission limi s a e, o how ha d i is o ge
away wi h b eaking ules) (Yu e al., 2024). When companies o epo s men ion ha index,
hey help eade s unde s and he “ ules a ound hem” o example, whe he a i m wo ks in a
coun y wi h ligh ules (easy) o e y s ic ules (ha d). This ma e s because s ic e ules
can push i ms o change how hey make hings, spend money on cleane machines, o epo
mo e abou hei pollu ion and ac ions. Resea ch ha builds and uses his index shows i is a
us ed way o compa e ules ac oss coun ies and o s udy how i ms eac when ules ge
oughe (Chomachaei & Golmohammadi, 2024; Honma & Hu, 2024; Emenyi, 20242).
Page No. 08
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
When i ms pu en i onmen al s ingency in o ma ion in o hei epo s, i helps
in es o s, wo ke s, and he public unde s and u u e cos s and isks. Fo example, i he index
is high whe e a i m wo ks, in es o s migh wo y he company will ace highe cos s o
cleaning up o paying ines o hey migh see i as a sign he company will in es in cleane
echnology and become s onge la e on (Honma & Hu, 2024). S udies looking a i m da a
show mixed esul s: some imes s ic e ules aise cos s and lowe sho - e m p o i s, and
some imes hey encou age inno a ion ha helps i ms la e on (Song, 2024). So, when
companies disclose he s ingency index o explain how hey a e a ec ed by i , eade s ge a
clea e , simple pic u e o whe he he company aces hea y en i onmen al ules and wha
ha migh mean o i s money and u u e plans(Chomachaei & Golmohammadi, 2024;
Honma & Hu, 2024; Lee & Song, 2024).
2.1.3 Financial pe o mance
Financial pe o mance is a c ucial concep ha measu es he e ec i eness o an
o ganiza ion in u ilizing i s esou ces o gene a e p o i s and achie e i s inancial goals. I
p o ides aluable insigh s in o he o e all heal h and sus ainabili y o a business. Analyzing
inancial pe o mance in ol es assessing a ious inancial me ics, a ios, and indica o s o
e alua e how well a company is managing i s esou ces and gene a ing e u ns o i s
s akeholde s (Ding e al., 2019; Ding e al., 2022). One key aspec o inancial pe o mance is
p o i abili y, which e lec s he abili y o a company o gene a e ea nings ela i e o i s
expenses and in es men s. P o i abili y a ios such as ne p o i ma gin, e u n on asse s, and
e u n on equi y a e commonly used o e alua e how e icien ly a company is con e ing i s
esou ces in o p o i s (Li & Yang, (2018). A high le el o p o i abili y indica es ha he
business is e ec i ely managing i s cos s and gene a ing heal hy e u ns o in es o s as
posi ed by Kaakeh and Gokmenoglu, (2022). A s ong liquidi y posi ion is essen ial o
ensu ing inancial s abili y and sa egua ding agains po en ial cash low challenges (Pie e al.,
2019).
Financial pe o mance also includes e alua ing he company's e iciency in
managing i s asse s and liabili ies. Asse managemen a ios such as in en o y u no e ,
accoun s ecei able u no e , and asse u no e assess how well a company is u ilizing i s
esou ces o gene a e e enue. E ec i e managemen o asse s ensu es op imal use o
esou ces and maximizes p o i abili y (Ha i sa e al., (2022). Le e age a ios like deb - o-
equi y a io and in e es co e age a io e lec he company's use o deb o inance i s
ope a ions and he abili y o mee i s deb obliga ions. Main aining an app op ia e le el o
le e age is c ucial o balancing isk and e u n and ensu ing long- e m inancial iabili y
(Amahalu, 2020). Dikeh (2020), summa ized ha he concep o inancial pe o mance
encompasses a ious aspec s o a company's inancial heal h and ope a ional e iciency.
Th ough e alua ing p o i abili y, liquidi y, asse managemen , and le e age, s akeholde s can
gain a comp ehensi e unde s anding o how well a company is pe o ming inancially as
opined by Ding e al (2022).
2.1.3.1 Re u n on asse (ROA)
Re u n on Asse (ROA) is a inancial pe o mance me ic ha measu es a
company's abili y o gene a e p o i s om i s asse s. I is a widely used indica o o a
company's e iciency in u ilizing i s asse s o gene a e ea nings as explained by Ma e al.,
(2022). In he con ex o en i onmen al penal ies disclosu e and inancial pe o mance o
lis ed indus ial goods i ms in Nige ia, ROA is a ele an me ic o assess he inancial
pe o mance o lis ed indus ial goods i ms in Nige ia. ROA is calcula ed by di iding a
company's ne income by i s o al asse s. The esul ing a io ep esen s he pe cen age e u n
on asse s. A highe ROA indica es ha a company is gene a ing mo e p o i s om i s asse s,
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
en i onmen al egula ion penal ies signi ican ly enhance he le el o en i onmen al
in o ma ion disclosu e. Mo eo e , co po a e ESG pe o mance plays a posi i e media ing
ole be ween egula o y penal ies and disclosu e beha io s, sugges ing ha en e p ises
espond o egula o y p essu e by imp o ing hei en i onmen al, social, and go e nance
p ac ices. G een echnological inno a ion also se es as a c ucial channel h ough which
en i onmen al penal ies in luence disclosu e, e lec ing an inc eased willingness o disclose
d i en by inno a ion-o ien ed ans o ma ion. He e ogenei y analysis u he indica es ha
he e ec is mo e p onounced among i ms wi h low goodwill, en e p ises in hea ily
pollu ing indus ies, and hose loca ed in egions wi h high public en i onmen al conce n.
Chui e al. (2025) examined he impac o en i onmen al egula ion in ensi y and digi al
economy on egional en i onmen al penal ies. By selec ing da a ela ed o en i onmen al
p o ec ion and digi al economy in 31 p o inces and municipali ies in China om 2010 o
2022 as he esea ch sample, his s udy explo es he in e play among en i onmen al
egula ion in ensi y, digi al economy, and egional en i onmen al penal ies. Findings indica e
ha inc easingly s ingen en i onmen al egula ions dec ease egional en i onmen al
penal ies. Fu he mo e, he ad ancemen o digi al inancial inclusion as digi al economy's
indica o e eals i s mode a ing e ec on he ela ionship be ween en i onmen al egula ions
and egional penal ies, exhibi ing a ia ions ac oss dis inc egions. The ex en o
echnological inno a ion has a simila e ec on he ela ionship be ween en i onmen al
egula ions and egional penal ies, wi h no able di e ences ac oss egions.
Chen e al., (2024), esea ched on en i onmen al penal ies and inancing punishmen :
E idence om inc emen al bank loans. This s udy examines he impac o en i onmen al
penal ies on co po a e inc emen al bank loans. The esul s show ha bo h he equency and
deg ee o en i onmen al penal ies signi ican ly educe co po a e inc emen al bank loans,
indica ing ha co po a e en i onmen al penal ies lead o “ inancing punishmen ” by
damaging co po a e epu a ion and inc easing isks. This inancing punishmen can be
alle ia ed by good CSR pe o mance and CSR assu ance, indica ing ha exempla y CSR
pe o mance and assu ance can p o ide an “insu ance” e ec o in luence bank loans when a
i m has a nega i e e en . We also ind ha his inancing punishmen has in a-indus y pee
e ec s, sugges ing ha he en i onmen al penal ies incu ed by one i m can in luence he
b oade c edi decisions o comme cial banks wi hin he same indus y.
Wu and Xu (2024), examined en i onmen al egula ion, agency cos s, and inancial
pe o mance: Based on he elease o “The New En i onmen al P o ec ion Law.” The
u gency o p o ec ing ou plane canno be o e s a ed. This pape employs Agency Cos
Theo y, u ilizing " he new EPA" as a case s udy and he di e ence-in-di e ence (DID)
model o analyze A-sha e-lis ed companies in hea ily pollu ing sec o s (2012–2018). The
esea ch demons a es ha he implemen a ion o he new EPA leads o a sus ained
enhancemen in he inancial pe o mance (UnEBIT) o hea ily pollu ing en e p ises.
Fu he mo e, he analysis o he media ing e ec om a p incipal-agen pe spec i e e eals
ha agency cos s play a pa ially media ing ole in he ela ionship be ween he new EPA and
inancial pe o mance. The adop ion o he new EPA educes in o ma ion asymme y
be ween sha eholde s and execu i es, he eby con ibu ing o he imp o emen in inancial
pe o mance. Addi ionally, when examining he di e si y among economic egions and he
na u e o p ope y igh s, i is obse ed ha agency cos s ha e a pa ially media ing ole in
he h ee majo economic egions. No ably, hea ily pollu ing s a e-owned en e p ises display
heigh ened sensi i i y o he implica ions o he new EPA, indica ing a p oac i e leade ship
ole. These indings ha e signi ican implica ions o enhancing he inancial pe o mance o
lis ed companies ope a ing in hea ily pollu ing indus ies, as well as o con ibu ing o he
Page No. 16

ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
a ainmen o ca bon peaking and ca bon neu ali y objec i es while ad ancing he
de elopmen o China's legal amewo k.
Guedhami (2024), ca ied ou a esea ch on do en i onmen al penal ies ma e o
co po a e inno a ion? En i onmen al penal ies play a c ucial ole in en o cing co po a e
en i onmen al compliance and pe o mance. In his pape , we examine whe he and how
go e nmen en i onmen al iola ion penal ies in luence co po a e inno a ion. Using a la ge
sample o Chinese-lis ed i ms, we ind ha i ms subjec ed o en i onmen al penal ies end
o educe hei in es men in R&D, esul ing in a educ ion in bo h pa en applica ions and
g an ed pa en s. These ad e se e ec s in ensi y wi h he se e i y o he penal ies and
con ibu e o aising he cos o capi al o penalized i ms. Howe e , ou analysis also
e eals ha he numbe o g een pa en applica ions ends o inc ease pos -penal y imposi ion.
These esul s indica e ha companies ha a e subjec o en i onmen al penal ies may shi
hei long- e m in es men s a egy om gene al inno a ion owa ds en i onmen al
ini ia i es.
Chen e al. (2024), assessed en i onmen al penal ies and analys ecommenda ions:
Based on he pe spec i e o nega i e en i onmen al go e nance pe o mance. This pape
aims o es he in luence o en i onmen al penal ies on analys ecommenda ions om he
pe spec i e o nega i e en i onmen al go e nance pe o mance, and u he es s he
in luence o en i onmen al penal ies on co po a e en i onmen al go e nance. We subdi ide
en i onmen al penal ies in o wo dimensions: en i onmen al penal y equency and
en i onmen al penal y in ensi y based on he b ead h and dep h o en i onmen al penal ies.
Then we ake lis ed i ms in hea y pollu ion indus ies in China om 2015 o 2021 as
esea ch samples, and use OLS eg ession analysis o es he impac o en i onmen al
penal y equency and en i onmen al penal y in ensi y on analys ecommenda ions. We ind
ha bo h en i onmen al penal y equency and en i onmen al penal y deg ee a e signi ican ly
and nega i ely co ela ed wi h analys ecommenda ions. The he e ogenei y analysis inds
ha he nega i e impac s o co po a e en i onmen al penal ies on analys ecommenda ions
a e mainly e lec ed in he g oup wi h la ge i m size and he g oup wi h g ea e indus y
compe i ion deg ee. Fu he analysis shows ha bo h en i onmen al penal y equency and
en i onmen al penal y deg ee can p omo e co po a e en i onmen al go e nance. The esul s
show ha en i onmen al penal ies b ing lowe analys ecommenda ions and epu a ion loss
o en e p ises. Unde he de e en e ec o en i onmen al penal ies and he nega i e impac
o analys ecommenda ions, en e p ises ha e he mo i a ion o imp o e en i onmen al
go e nance. This pape inds ha co po a e nega i e en i onmen al go e nance pe o mance
is u h ully embedded in analys ecommenda ion decisions, p o iding e idence o he
mechanism and pa h o China's en i onmen al go e nance sys em o play i s ole. These
indings a e conduci e o p o iding new e idence o analys s o play he ole o capi al
ma ke in o ma ion in e media y. This s udy expands he li e a u e on he economic
consequences o co po a e en i onmen al penal ies and en iches he li e a u e on he ac o s
a ec ing analys ecommenda ions om he new pe spec i e o co po a e nega i e
en i onmen al pe o mance.
Zhou e al. (2024), ca ied ou an in es iga ion on en i onmen al adminis a i e
penal ies and co po a e g eenwashing. We de elop a me hod ha iden i ies co po a e
g eenwashing adop ing a deep lea ning algo i hm and ind a obus posi i e associa ion
be ween en i onmen al adminis a i e penal ies and co po a e g eenwashing. We also ind
ha oppo unis ic managemen endencies and heigh ened ex e nal p essu es mo i a e i ms
o g eenwash a e such penal ies. Addi ionally, i ms wi h weak in e nal con ol quali y,
ope a ing wi hin ie cely compe i i e indus ies, o loca ed in egions o se e e en i onmen al
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
pollu ion a e mo e inclined o g eenwash o mi iga e losses s emming om adminis a i e
penal ies. Ou wo k p o ides heo e ical insigh s in o he e ec i eness o en i onmen al
penal ies and con ibu es o he ongoing egula ion and disclosu e deba e.
Li and Ramana han (2024), examined he in e ac i e e ec o en i onmen al penal ies
and en i onmen al subsidies on co po a e en i onmen al inno a ion: Is mo e be e o wo se?
Mos p e ious s udies ail o in es iga e he in e ac i e e ec s o di e en en i onmen al
ins umen s. Whe he adop ing mo e en i onmen al ins umen s is be e o wo se o
co po a e en i onmen al inno a ion (CEI) emains unclea . In his s udy, we dis inguish
be ween egula o y p essu es as puni i e p essu es (en i onmen al penal ies, EP) and
incen i e p essu es (en i onmen al subsidies, ES) and ocus on in es iga ing whe he EP and
ES ac as complemen s o subs i u es on CEI. The esul s e eal ha he in e ac i e e ec o
EP and ES can ac as subs i u es a he han complemen s in p omo ing CEI. The esul s
emain unchanged a e a se ies o obus ness es s. Fu he he e ogenei y analysis e eals
ha he subs i u i e e ec o EP and ES on CEI is mo e p onounced o s a e-owned i ms
and o i ms ope a ing in egions cha ac e ized by highe en i onmen al quali y and
g ea e ma ke iza ion. Ou esul s p o ide aluable insigh s o he go e nmen on achie ing
an op imal ou come by mixing en i onmen al ins umen s o p omo e CEI.
Zhao e al. (2024), ca ied ou an in es iga ion on analysis o he mode a ing e ec s o
en i onmen al egula ions on g een accoun ing in o ma ion disclosu e and inancial
pe o mance o hea ily pollu ing en e p ises. This s udy ocuses on he hea y pollu ion
indus y o A-sha e lis ed companies in China, spanning he pe iod om 2012 o 2022. I
me iculously examines he cu en s a e o g een accoun ing in o ma ion disclosu e wi hin
his sec o and del es in o he implica ions o such disclosu e on he inancial pe o mance o
hese en e p ises. The indings e eal a compelling co ela ion: he mo e ex ensi e and
anspa en he g een accoun ing in o ma ion disclosed by a company, he mo e a o able i s
inancial pe o mance ends o be. Fu he mo e, he s udy iden i ies g een inno a ion as a
pi o al mode a ing ac o , posi i ely in luencing he ela ionship be ween disclosu e and
inancial ou comes.
N ui (2024) examined how co po a e go e nance amewo ks in luence he ela ionship
be ween i m in e nal cha ac e is ics and en i onmen al disclosu e in Tanzania’s ex ac i e
indus y. D awing om ins i u ional heo y, he esea ch used con en analysis and panel da a
om annual epo s om 18 companies, spanning he yea s 2004 o 2018. The s udy
classi ied i s a iables in o wo p ima y ca ego ies: he i s ca ego y comp ises i m in e nal
cha ac e is ics (such as age, size, p o i abili y, kind, s uc u e o owne ship, and s uc u e o
capi al o he o ganiza ion) ha di ec ly impac en i onmen al disclosu e. The second g oup
examines co po a e go e nance s uc u es, such as he boa d’s independence, size, gende
di e si y among boa d membe s, and boa d commi ees, as ac o s ha educe o enhance he
impac s. The esea ch indings a e impo an because hey showed ha gende di e si y has a
mode a ing e ec on he ela ionship be ween business size and en i onmen al disclosu e.
Con e sely, he au onomy o he boa d diminishes he co ela ion be ween he company’s
dimensions, longe i y, owne ship composi ion, inancial amewo k, and na u e, as well as i s
disclosu e o en i onmen al in o ma ion.
Ogunmodede e al. (2024) in es iga ed how i m a ibu es in luence sus ainabili y
disclosu e, ocusing on a compa a i e analysis wi hin he less en i onmen ally sensi i e
sec o in Nige ia. The speci ic aims included de e mining he a iance in he impac o
Le e age on sus ainabili y disclosu e and explo ing he dis inc ion in he e ec o
p o i abili y on sus ainabili y disclosu e wi hin his sec o . Employing a longi udinal and ex-
Page No. 18
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
pos ac o esea ch design, he s udy a ge s a popula ion o 150 lis ed i ms in Nige ia,
selec ing a sample o 20 i ms om bo h inancial and non- inancial sec o s h ough
judgmen al sampling. Da a spanning om 2012 o 2021 we e ga he ed om he annual
epo s and accoun s o he chosen i ms, along wi h in o ma ion om he Nige ia Exchange
G oup (NGX) ac book. Hypo heses we e es ed using panel eg ession and - es echniques.
The p ima y indings e ealed a signi ican di e ence in he in luence o i m size on
sus ainabili y disclosu e in mo e en i onmen ally sensi i e indus ies (P= 0.0002). In
summa y, he adop ion o sus ainable de elopmen s a egies by companies e lec s
managemen 's acknowledgmen o s akeholde pe cep ions. The s udy sugges ed ha
egula o s p io i ize en i onmen al and social conce ns o encou age sus ainable p ac ices,
including enhanced disclosu e on en i onmen al, social, and go e nance on s.
Sa i and Adi (2024) examined he impac o i m cha ac e is ics on he en i onmen al
disclosu es o lis ed oil and gas ma ke ing companies in Nige ia. Speci ically, i in es iga ed
he signi icance o le e age and o eign a ilia ion on en i onmen al disclosu es. The s udy
u ilized longi udinal da a om 10 oil and gas ma ke ing companies lis ed on he Nige ian
Exchange G oup o e a 10-yea pe iod, om 2011 o 2020. Con en analysis was employed
o ex ac en i onmen al disclosu e da a as speci ied by he Global Repo ing Ini ia i e (GRI)
11 o 2021, and panel eg ession echniques we e applied. The indings e ealed a signi ican
ela ionship be ween le e age, o eign a ilia ion, and en i onmen al disclosu es among he
lis ed oil and gas ma ke ing companies, wi h p- alues o 0.031 and 0.009, espec i ely. The
pape ecommended ha c edi o s o hese companies should con inue o moni o he
compliance le el o managemen ega ding en i onmen al disclosu es.
Bao and Yu (2023) esea ched on he impac o en i onmen al egula ion on co po a e
inancial pe o mance: An empi ical s udy om China. By using dynamic game analysis, a
heo e ical amewo k is cons uc ed o in es iga e he impac o en i onmen al egula ions
on co po a e inancial pe o mance. A sample o 3021 A-sha e lis ed companies, lis ed on he
Shanghai and Shenzhen s ock exchanges om 2010 o 2018, is used o empi ical es ing
wi h GMM model. Th ough he ma ching o egional da a and en e p ise da a, his pape
expands he measu emen o en i onmen al egula ion om meso o mic o and hen,
sys ema ically es ima es he impac and media ing e ec o en i onmen al egula ion on
co po a e inancial pe o mance. The esul s show ha en i onmen al egula ion policies and
ins umen s a e impo an ac o s in luencing co po a e inancial pe o mance and ha he
main way o imp o e he e iciency o en i onmen al egula ion is o encou age i ms o
ca y ou pollu ion con ol h ough echnological inno a ion. The empi ical esul s no only
show ha en i onmen al egula ions can acili a e he upg ading o co po a e inancial
pe o mance, bu also ha echnological inno a ion, especially g een echnology inno a ion,
also pa ially media es he e ec o en i onmen al egula ions in p omo ing co po a e
inancial pe o mance. A he same ime, he impac o en i onmen al egula ions on
co po a e inancial pe o mance is bo h cons ained and in luenced by co po a e owne ship,
indus y classi ica ion and ci y le el. En i onmen al egula ions a e mo e likely o imp o e
he co po a e inancial pe o mance o non-s a e-owned companies han ha o s a e-owned
companies. En i onmen al egula ion signi ican ly boos s co po a e inancial pe o mance in
clean indus ies, bu signi ican ly dep esses co po a e inancial pe o mance in pollu ing
indus ies. Compa ed wi h highe -le el ci ies, en i onmen al egula ions only acili a e
imp o emen s o co po a e inancial pe o mance in o dina y p e ec u e-le el ci ies.
Wang e al. (2023), ca ied ou an in es iga ion on can he penal y mechanism o
manda o y en i onmen al egula ions p omo e g een inno a ion? E idence om China's
en e p ise da a. The e is no consensus ega ding he impac o manda o y en i onmen al
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
egula ions on co po a e g een inno a ion. This s udy explains he di e gen conclusions by
di e en ia ing be ween he de e ence mechanism and penal y mechanism o such
egula ions. Using China's en e p ise da a om 2010 o 2020, his pape employs he
mul iple ixed e ec panel da a model o examine he g een inno a ion beha io o punished
en e p ises. The indings e eal a signi ican educ ion in bo h he quan i y and quali y o
co po a e g een inno a ion due o en i onmen al penal ies. Speci ically, he nega i e impac
is obse ed in he quan i y o g een inno a ion associa ed wi h end-o -pipe go e nance and
he quali y o g een inno a ion ela ed o sou ce con ol. These esul s a e obus and
wi hs and a ious obus ness es s. Mechanism analysis indica es ha en i onmen al penal ies
do no lead o inc eased en i onmen al in es men o non-g een inno a ions. He e ogenei y
analysis demons a es ha adequa e inancial esou ces can help companies mi iga e he
ad e se consequences o en i onmen al penal ies. This esea ch con ibu es o unde s anding
he mechanism h ough which manda o y en i onmen al egula ions in luence g een
inno a ion and o e s aluable insigh s o decision-making owa ds en i onmen ally iendly
economic de elopmen .
Nguyen (2023) in es iga e he ela ionship be ween en i onmen al pe o mance and
inancial pe o mance: E idence om an eme ging Eas Asian economy. This s udy
in es iga es he ela ionship be ween en i onmen al pe o mance and inancial pe o mance
in bo h linea and quad a ic unc ions in an eme ging Eas Asian ma ke . Accoun ing-based
and ma ke -based measu es a e u ilized o cap u e wo di e en aspec s o inancial
pe o mance. We ex end he exis ing li e a u e by conside ing a mul idimensional agg ega e
cons uc o en i onmen al pe o mance and inding empi ical e idence o a U-shaped
ela ionship be ween en i onmen al pe o mance and inancial pe o mance. Acco dingly, an
inc ease in en i onmen al pe o mance de e io a es inancial pe o mance in he beginning,
bu a e i s h eshold has been eached, he e ec e e ses and en i onmen al pe o mance
ul ima ely se es p o i abili y and ma ke alue. Ou indings would be o in e es o i ms,
in es o s, and policymake s by emphasizing he ole o en i onmen al pe o mance in he
imp o emen o inancial pe o mance in he long e m.
Rania and Dahlan (2023) examined he e ec o en i onmen al pe o mance and
le e age on inancial pe o mance. This s udy aims o de e mine he e ec o en i onmen al
pe o mance and le e age on inancial pe o mance. The app oach used in his esea ch is
quan i a i e me hod. This s udy uses seconda y da a om annual epo s o manu ac u ing
companies lis ed on he Indonesia S ock Exchange o he 2020-2021 pe iod, amoun ed o 46
samples. The analysis echnique used is mul iple linea eg ession. The esul indica es ha
en i onmen al pe o mance has a posi i e and signi ican e ec on inancial pe o mance and
le e age has a nega i e and signi ican e ec on inancial pe o mance. This s udy’s
limi a ions a e he sho esea ch pe iod om 2020-2021 and only use wo a iables as he
independen a iables. The esul s ob ained can be used as an e alua ion ma e ial o he
company and p o ide insigh o in es o s in making in es men decisions. This s udy can
also be used as a e e ence o u he esea ch.
Hanjani and Kusumadewi (2023) asce ained he en i onmen al pe o mance and
inancial pe o mance: Empi ical e idence om Indonesian companies. This s udy aims o
in es iga e he e ec o Audi Commi ee, i m cha ac e is ics, and ISO 14001 on
en i onmen al pe o mance. Also, his s udy analyzes he e ec o en i onmen al
pe o mance on he inancial pe o mance. The da a analysis was pe o med using mul iple
linea eg ession Da a collec ion echniques a e ca ied ou using annual epo s o companies
ecei ing PROPER Awa d and lis ed on he Indonesia S ock Exchanges in he yea o 2015–
2019. The esul s showed ha Audi Commi ee, i m cha ac e is ics, and ISO 14001
Page No. 20
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
signi ican ly in luenced en i onmen al pe o mance. Ano he esul is ha en i onmen al
pe o mance has a posi i e e ec on he inancial pe o mance. This s udy con ibu es as a
e e ence o he go e nmen o make en i onmen al policies so as o encou age he
achie emen o sus ainable de elopmen goals (SDGs). This s udy measu es en i onmen al
pe o mance using only PROPER which canno be gene alized o all companies lis ed on he
Indonesia S ock Exchanges and o he ma ke s. The nex s udies should use o he p oxies o
measu e en i onmen al pe o mance and use o he da a collec ion me hods such as
in e iews.
O ajekwe and Ogbodo (2023) in es iga ed he ela ionship be ween i m-speci ic
cha ac e is ics and en i onmen al disclosu e p ac ices o ene gy i ms in sub-Saha an A ica.
I examined how p o i abili y, size, and liquidi y in luence he en i onmen al disclosu e
index (EDI) o lis ed ene gy i ms in he egion. A quan i a i e app oach was adop ed,
u ilizing seconda y da a om he annual epo s o ene gy i ms lis ed in Nige ia, Sou h
A ica, and Kenya. Reg ession analysis was employed o assess he impac o i m-speci ic
cha ac e is ics on EDI using was e managemen da a based on he Global Repo ing Ini ia i e
(GRI) 306 guidelines. The indings indica ed ha P o i abili y posi i ely a ec ed EDI,
indica ing g ea e anspa ency in epo ing en i onmen al ini ia i es o mo e p o i able
i ms. Con e sely, i m size was nega i ely co ela ed wi h en i onmen al disclosu e,
sugges ing challenges o la ge i ms in e ec i ely communica ing hei en i onmen al
e o s. Howe e , i m liquidi y did no signi ican ly a ec EDI.
Enekwe e al. (2023) examined he e ec o en i onmen al cos s on he inancial
pe o mance o lis ed oil and gas companies in Nige ia. The ex-pos ac o esea ch design
was employed o he collec ion o inancial s a emen s o ou lis ed oil and gas companies
in Nige ia o a en-yea pe iod om 2010 o 2019. The pu posi e sampling echnique was
used o he s udy. The Panel O dina y Leas Squa e o he mul iple eg ession model was
conduc ed using he E- iews e sion 9.0 s a is ical so wa e package. The indings e ealed
ha s a de elopmen cos s ha e a nega i e bu insigni ican e ec on lis ed Nige ian oil and
gas companies' e u n on asse s, while communi y de elopmen cos s and employee heal h
and sa e y cos s ha e a posi i e bu insigni ican e ec . This implies ha he amoun s o hese
cos s incu ed by he s udied companies a e oo small o ha e an impac on hei pe o mance
me ics.
Law ence and Be na d (2023) ca ied ou esea ch on he mode a ed eg ession analysis
app oach o en i onmen al cos s and inancial pe o mance o Nige ian indus ial goods i ms
o he pe iod o ele en (11) yea s om 2011 o 2020, bo h yea s inclusi e. En i onmen al
cos s a e independen a iables p oxied by was e managemen cos s (WMC) and communi y
de elopmen cos s (CDC) wi h he mode a ed a iable o i m size (FS), while inancial
pe o mance is a dependen a iable p oxied by ne p o i ma gin (NPM). The ex-pos ac o
esea ch design and panel da a we e used o he da a collec ion. The panel es ima es o
gene alized leas squa es and uni oo es s we e analyzed using e- iews s a is ical so wa e.
The eg ession esul indica es ha was e managemen cos s (WMC) and communi y
de elopmen cos s (CDC) ha e a signi ican posi i e e ec on ne p o i ma gin (NPM),
while he mode a ed a iable o i m size on bo h was e managemen cos s (WMC) and
communi y de elopmen cos s (CDC) has a signi ican nega i e e ec on he ne p o i
ma gin (NPM) o he selec ed indus ial goods i ms in Nige ia.
Ding e al. (2022), ca ied ou an in es iga ion on En i onmen al adminis a i e
penal y, co po a e en i onmen al disclosu es, and he cos o deb . The ole o en i onmen al
in o ma ion disclosu e (EID) in deb inancing o penalized en e p ises emains limi ed in

EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
he cu en li e a u e. This esea ch seeks o in es iga e his opic by ocusing on
manu ac u ing i ms ha ha e been penalized by he Chinese go e nmen o iola ing
en i onmen al ules and egula ions. Fu he , i analyzes how en i onmen al adminis a i e
penal ies impac he deb cos in he ollowing yea . Based on ou esul s, he en i onmen al
adminis a i e penal y signi ican ly inc eases he deb cos in he ollowing yea h ough he
nega i e inc emen o he company's disclosu e quali y, and he inc emen al disclosu e plays
a media ing ole in his ela ionship. Besides, i has also been ound ha en i onmen al
adminis a i e penal ies canno a ec he deb cos by changing he disclosu e le el. While
he exis ing li e a u e has es ablished ha en i onmen al penal ies can lead o changes in
co po a e in o ma ion disclosu e, his esea ch con ibu es o his li e a u e by e ealing ha
he decline o en i onmen al disclosu e quali y o penalized i ms leads o he inc ease o
inancing cos s.
Xin e al. (2022), ca ied ou an in es iga ion on do en i onmen al adminis a i e
penal ies a ec audi ees? Resul s om mul iple econome ic models. The cons uc ion o
ecological ci iliza ion is an impo an equi emen o ealize high-quali y de elopmen o he
economy. O e ecen decades, na u al disas e s, global wa ming, and o he ecological
p oblems ha e occu ed equen ly, and coun ies a ound he wo ld a e acing se e e
en i onmen al challenges. Sus ainable de elopmen is an e ec i e way o sol e hese
en i onmen al h ea s, and en i onmen al adminis a i e penal ies play a undamen al ole in
sus ainable g ow h. So, we explo e he esponse o ex e nal s akeholde s o en i onmen al
adminis a i e penal ies om he pe spec i e o audi o s. The s udy examines whe he
en i onmen al adminis a i e penal ies a ec audi ees, he he e ogenei y e ec s and he
mechanisms. The esea ch uses da a o hea ily pollu ing lis ed i ms in China ha ha e been
e ealed by he Ins i u e o Public and En i onmen al A ai s (IPE). The indings show he
ollowing: (1) en i onmen al adminis a i e penal ies can inc ease audi ees; (2) he e ec i e
in e nal con ol en i onmen can weaken he posi i e ela ionship be ween i ms’
en i onmen al adminis a i e penal ies and audi ees, and he s onge egional
en i onmen al egula ion can enhance he posi i e impac o i ms’ en i onmen al
adminis a i e penal ies on audi ees; (3) u he analysis shows ha he impac o
en i onmen al adminis a i e penal ies on audi ees mainly comes om he “ isk p emium
mechanism” a he han he “cos compensa ion mechanism”, and he esponse om audi
ees can encou age i ms o engage in g een inno a ion ac i i ies. The abo e esea ch
conclusions p o ide a ce ain e e ence o audi o s’ p icing decisions.
Ma e al. (2022), esea ched on en i onmen al iola ions, e inancing isk, and he
co po a e bond cos in China. This pape examines he ela ionship be ween en i onmen al
iola ions and he cos o co po a e bonds, and u he analyzes whe he e inancing
cons ain s, he lending es ic ions on penalized i ms, a e an impo an channel h ough
which en i onmen al iola ions a ec he cos o co po a e deb inancing in China. Using
he manually collec ed en i onmen al iola ion e en s om 2008 o 2020, we ind ha he
bond cos o i ms iola ing en i onmen al egula ions inc eases signi ican ly a e being
penalized. The inding is obus o po en ial sample selec ion bias and endogenei y p oblems.
Fu he mo e, we ind ha he e ec o en i onmen al iola ions on he cos o co po a e
bonds is mo e p o ound in sho - e m deb -dependen i ms and can be alle ia ed by he
in e nal inancing dependence. These esul s con i m ha he e inancing isk a ising om
China's g een loan policy on pollu ion-in ensi e i ms plays a key ole in he ela ion be ween
en i onmen al iola ions and he cos o capi al in he i ms. In he con ex o he g owing
conce ns o global socie y abou clima e change, ou indings ha e g ea implica ions o
pollu ion-in ensi e i ms, bond in es o s, and egula o y au ho i ies in eme ging economies
o manage he inc easing en i onmen al isk.
Page No. 22
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
Kaakeh and Gokmenoglu (2022) assessed he en i onmen al pe o mance and inancial
pe o mance du ing he COVID-19 ou b eak: Insigh om Chinese i ms. The global p essu e
o educe ca bon emissions on high-ca bon-emi ing economies has in ensi ied signi ican ly
in ecen yea s. Howe e , hese e o s’ e ec on he i m’s inancial pe o mance (FP) has
been a majo conce n. This esea ch in es iga es he ela ionship be ween en i onmen al
pe o mance (EP) and FP o Chinese i ms conside ing he e ec o he COVID-19 ou b eak.
Da a was collec ed om Re ini i Da aS eam and span he pe iod o 2017–2020. In addi ion
o he ixed-e ec s eg ession, he no el dynamic panel boo s ap co ec ed ixed e ec s and
panel co ec ed s anda d e o s me hods we e u ilized o es he hypo heses. Ob ained esul s
e ealed wo key indings. Fi s , he e is weak e idence ha highe EP inc eases i ms’ FP.
Second, he ela ionship be ween EP and FP is posi i e in imes o economic dis ess,
meaning ha i ms mus con inue in es ing in en i onmen ally e hical and sus ainable
p ojec s du ing he c isis. Ou empi ical indings ex end he exis ing li e a u e by showing
ha e en in imes o c isis, such as COVID-19, an en i onmen ally iendly business model
posi i ely a ec s he i m’s inancial s uc u e. We discuss he policy ecommenda ions
implied by ou indings o in es o s, business owne s, manage s, and o icials in he
conclusion sec ion.
Ha i sa e al. (2022), empi ically pos ula ed on he e ec o en i onmen al
pe o mance and inancial pe o mance on i m alue in mining companies lis ed on he
Indonesia S ock Exchange. This s udy aims o ob ain empi ical e idence o he E ec o
En i onmen al Pe o mance and Financial Pe o mance on Fi m Value, Mining Sec o Lis ed
on he Indonesia S ock Exchange. This s udy uses a quan i a i e app oach wi h he ype o
explana o y esea ch. The analy ical ool used is Mul iple Linea Reg ession. The esul s
showed ha En i onmen al Pe o mance had an e ec on Fi m Value. The meaning o his
inding is ha empi ically En i onmen al Pe o mance is a de e mining ac o o Fi m Value
in mining companies lis ed on he Indonesia S ock Exchange. Financial Pe o mance has no
e ec on Fi m Value. The meaning o he esea ch indings is ha empi ically Financial
Pe o mance is no a de e mining ac o o Fi m Value in mining companies lis ed on he
Indonesia S ock Exchange.
Xie e al. (2022) examined how en i onmen al pe o mance a ec s inancial
pe o mance in he ood indus y: A global ou look. The impac s o en i onmen al
pe o mance on he inancial pe o mance o ood i ms a e in es iga ed in his pape using a
sample o 6064 ood companies om 51 coun ies. The inancial pe o mance is measu ed
h ough sales and in e nal unds, and en i onmen al pe o mance is based on whe he i ms
ha e adop ed s anda ds ela ed o en i onmen al managemen . The empi ical esul s show
ha , o he ull sample, ood i ms’ sales a e posi i ely associa ed wi h en i onmen al
pe o mance, while en i onmen al pe o mance does no impac in e nal unds. In subsample
analyses, his pape inds ha he en i onmen al pe o mance o i ms in lowe -middle-
income and uppe -middle-income coun ies has a mo e signi ican impac on sales han i ms
in high-income coun ies. Mo eo e , desi able en i onmen al pe o mance signi ican ly
inc eases he in e nal unds o ood i ms in mos coun y g oups excep o high-income
coun ies. G ouping coun ies by egion, we ind ha en i onmen al pe o mance
signi ican ly in luences sales in all egions excep o A ica. Howe e , o in e nal unds, i
is only subs an ial in A ica. The esul s also imply he signi icance o expanding i m size
and adop ing o eign echnology o ood companies o achie e be e inancial pe o mance.
She chenko (2021) ca ied ou an in es iga ion on do inancial penal ies o
en i onmen al iola ions acili a e imp o emen s in co po a e en i onmen al pe o mance?
An empi ical in es iga ion. En i onmen al egula ions play an essen ial ole in managing
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
i m beha io and p o iding a e e ence poin o he minimum s anda ds o co po a e
en i onmen al pe o mance, ye ce ain i ms ail o ensu e hei en i onmen al pe o mance
mee s hese s anda ds. This esea ch ocuses on public i ms ha he US go e nmen has
penalized o iola ing en i onmen al egula ions and in es iga es whe he hese i ms
subsequen ly imp o ed hei en i onmen al pe o mance. Su p isingly, nei he he eceip o
a penal y o an en i onmen al iola ion no he imposi ion o a g ea e penal y was
associa ed wi h imp o emen s in en i onmen al pe o mance. Ins ead, a penal y o
en i onmen al iola ion p edic ed u he , albei mild, de e io a ion in en i onmen al
pe o mance. While he exis ing li e a u e has es ablished ha inancial penal ies de e mos
i ms om commi ing en i onmen al iola ions, his esea ch con ibu es o his li e a u e by
e ealing ha hese penal ies ail o mo i a e i ms ha ha e iola ed en i onmen al
egula ions o imp o e hei en i onmen al pe o mance.
Aslam e al. (2021), esea ched on en i onmen al managemen p ac ices and inancial
pe o mance using da a en elopmen analysis in Japan: The media ing ole o en i onmen al
pe o mance. This s udy in es iga es he ela ionship be ween en i onmen al managemen
p ac ices (EMPs) and inancial pe o mance (FP) and consequen ly asce ains whe he
en i onmen al pe o mance (EP) can media e he EMPs–FP nexus. Dis inc ly using da a
en elopmen analysis and gene alised me hod o momen s echniques o analyse a
comp ehensi e da ase o Nikkei 225 lis ed i ms om 2007 o 2018 (1920 i m-yea
obse a ions), ou indings i s sugges ha EMPs ha e a posi i e e ec on FP. Second, he
desi ed EP can be achie ed h ough he adop ion o comp ehensi e EMPs. Thi d, imp o ed
EP has a subs an ial impac on shaping he EMPs' e ec on FP. These indings a e consis en
wi h he p edic ions o esou ce-based iew and ins i u ional heo ies. The esul s a e obus
o con olling o di e en ypes o al e na i e measu es and endogenei ies. The indings ha e
impo an implica ions o academics, in es o s, manage s, policymake s and egula o s.
Bello and Ogungbenle (2022) sc u inized he de e minan s o en i onmen al disclosu e
in Nige ia. Hence he objec i es included examining he e ec o indus y ype, le e age and
i m size on en i onmen al disclosu e. His o ical da a we e ob ained om he inancial
s a emen s and accoun o i ms in he manu ac u ing and inancial sec o s lis ed in he
Nige ia S ock Exchange. I was ecommended ha i ms in ce ain ope a ions ha can ha e
e ec on he en i onmen should disclose hei inancial commi men s in he annual epo s
especially hose i ms ha i s ope a ions ha e o do wi h pollu ion and o he en i onmen al
haza d should disclose hei en i onmen al in o ma ion. Adequa e numbe o companies om
bo h manu ac u ing and non-manu ac u ing sec o s we e used o he s udy wi h panel da a
su ey o he i ms.
Chouaibi e al. (2022) in es iga ed he e ec o selec ed boa d cha ac e is ics on he
le el o en i onmen al disclosu e by Eu opean i ms. This s udy used a sample o 220
Eu opean companies unde he con ex o a new da ase , namely, Da aS eam asse da abase.
Co po a e en i onmen al disclosu e index (CEDI) was de eloped o measu e he le el o
en i onmen al in o ma ion. This index was calcula ed based on he CEDI- ela ed i ems
p o ided by Da aS eam. The mul iple linea eg ession analyses we e used o e i y he
e ec o he boa d o di ec o s’ cha ac e is ics on he le el o en i onmen al disclosu e. The
esul s indica e ha he boa d size and boa d independence ha e a s a is ically signi ican and
posi i e impac on he le el o en i onmen al disclosu e.
Udosen and Enoidem (2022) examined he e ec o co po a e a ibu es on
en i onmen al disclosu e o lis ed b ewe ies in Nige ia om 2012 o 2021. The independen
a iable o he s udy was co po a e a ibu es and was p oxied by p o i abili y, le e age and
Page No. 24
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
i m size while he dependen a iable o he s udy was en i onmen al disclosu e. Seconda y
da a we e used, h ee hypo heses we e o mula ed and he esea ch design employed in his
s udy was ex pos ac o esea ch design. To es he hypo heses o he s udy, he esea che
adop ed he pooled logis ic eg ession echnique and he s a is ical package employed was
STATA 16. The esul s om he analysis e ealed ha i m size has a signi ican e ec on
en i onmen al disclosu es o b ewe ies in Nige ia while p o i abili y and le e age ha e no
signi ican e ec on en i onmen al disclosu es o lis ed b ewe ies in Nige ia du ing he
pe iod unde s udy. Thus, i was concluded ha only he size o he i m can signi ican ly
de e mine he likelihood o lis ed b ewe ies o disclose mo e o hei en i onmen al
engagemen s. I was ecommended among o he s ha he managemen o he Nige ian
b ewe y should expand he o al asse s base o he companies so ha hey can be con iden o
disclosing mo e en i onmen al in o ma ion in hei inancial epo s.
METHODOLOGY
This sec ion delibe a ed on he esea ch design, popula ion o he s udy, sample size
and sampling echniques, sou ces o da a and me hod o da a collec ion, me hod o da a
analysis, model speci ica ion as well asmeasu emen /ope a ionaliza ion o a iables.
3.1 Resea ch design
This wo k adop ed an ex-pos ac o esea ch design. This design was sui able because
he da a o he analysis had al eady anspi ed, lea ing li le o no oom o he esea che o
manipula e i .
3.2 Popula ion o he s udy
In his s udy, he popula ion was made up o all indus ial companies lis ed on he
loo o he Nige ian Exchange G oup (NGX) om 2015 o 2024. As o Decembe 31s , 2024,
he o al numbe o indus ial companies lis ed was hi een (13).
3.2 Sample size de e mina ion and sampling p ocedu e
A sample size o nine (9) lis ed indus ial goods i ms in Nige ia we e a i e a
pu posi ely a e subjec ing i o a alidi y es using Tabachnick and Fidell (2007) o mula.
The Tabachnick and Fidell (2007) o mula is gi en as ollows;
n ≥ 50 + 8(m)
Whe e;
n = numbe o pooled obse a ion
m = numbe o p edic o a iables, i.e 5.
50+8(m) = minimum numbe o pooled obse a ion
The e o e, n ≥ 50 + 8(3)
n ≥ 74
In line wi h he abo e, conside ing h ee (3) p edic o a iables o his s udy, he minimum
numbe o pooled obse a ion o his s udy s ood a 74 while he numbe o pooled
obse a ion wi h a sample size o nine (9) is 90. (i.e 9 by 10).
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
The null hypo hesis is u he ejec ed gi en ha i s p obabili y alue (p- alue = 0.0368) is
less han 0.05 (p<0.05).
4.3.2 Hypo hesis wo
Ho: Repu a ional penal ies disclosu e has no signi ican e ec on e u n on asse o lis ed
indus ial goods i ms in Nige ia.
H1: Repu a ional penal ies disclosu e has signi ican e ec on e u n on asse o lis ed
indus ial goods i ms in Nige ia.
Rega ding Repu a ional penal ies disclosu e, he Tcal o 3.0916 is g ea e han T ab o
2.262, gi en a T0.05,9, Hence, he null hypo hesis which s a es ha epu a ional penal ies
disclosu e has no signi ican e ec on e u n on asse o lis ed indus ial goods i ms in
Nige ia ails o hold, hus ejec ed, and he al e na i e hypo hesis accep ed. The null
hypo hesis is u he ejec ed gi en ha i s p obabili y alue (p- alue = 0.0481) is less han
0.05 (p<0.05).
4.3.3 Hypo hesis h ee
Ho: Was e penal ies disclosu e has no signi ican e ec on e u n on asse o lis ed
indus ial goods i ms in Nige ia.
H1: Was e penal ies disclosu e has signi ican e ec on e u n on asse o lis ed indus ial
goods i ms in Nige ia.
Rega ding was e penal ies disclosu e, he Tcal o 4.6234 is g ea e han T ab o 2.262,
gi en a T0.05,9, Hence, he null hypo hesis which s a es ha was e penal ies disclosu e has no
signi ican e ec on e u n on asse o lis ed indus ial goods i ms in Nige ia ails o hold,
hus ejec ed, and he al e na i e hypo hesis accep ed. The null hypo hesis is u he ejec ed
gi en ha i s p obabili y alue (p- alue = 0.0082) is less han 0.05 (p<0.05).
4.3.4 Hypo hesis ou
Ho: Pollu ion le y disclosu e has no signi ican e ec on e u n on asse o lis ed
indus ial goods i ms in Nige ia.
H1: Pollu ion le y disclosu e has signi ican e ec on e u n on asse o lis ed indus ial
goods i ms in Nige ia.
Fo pollu ion le y disclosu e, he Tcal o 0.9309 is less han T ab o 2.262, gi en a
T0.05,9, Hence, he null hypo hesis which s a es ha pollu ion le y disclosu e has no signi ican
e ec on e u n on asse o lis ed indus ial goods i ms in Nige ia holds, hus accep ed, and
he al e na i e hypo hesis ejec ed. The null hypo hesis is u he accep ed gi en ha i s
p obabili y alue (p- alue = 03545) is less han 0.05 (p<0.05).
4.3.4 Hypo hesis i e
Ho: En i onmen al s ingency index has no signi ican e ec on e u n on asse o lis ed
indus ial goods i ms in Nige ia.
H1: En i onmen al s ingency index has signi ican e ec on e u n on asse o lis ed
indus ial goods i ms in Nige ia.
Page No. 32

ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
Rega ding En i onmen al s ingency index, he Tcal o 3.1170 is g ea e han T ab o
2.262, gi en a T0.05,9, Hence, he null hypo hesis which s a es ha en i onmen al s ingency
index has no signi ican e ec on e u n on asse o lis ed indus ial goods i ms in Nige ia
ails o hold, hus ejec ed, and he al e na i e hypo hesis accep ed. The null hypo hesis is
u he ejec ed gi en ha i s p obabili y alue (p- alue = 0.0071) is less han 0.05 (p<0.05).
4.4 Discussion o indings
4.4.1 Remedia ion penal ies disclosu e and e u n on asse s
The s udy's inding ha emedia ion penal ies disclosu e has a signi ican posi i e
e ec on e u n on asse (ROA) o lis ed indus ial goods i ms in Nige ia implies ha a 1%
inc ease in emedia ion penal ies disclosu e is associa ed wi h a 0.1957% inc ease in ROA.
This sugges s ha i ms ha disclose emedia ion penal ies may expe ience a 19.57%
inc ease in ROA o e e y 100% inc ease in emedia ion penal ies disclosu e. The inding
implies ha anspa ency in en i onmen al epo ing, pa icula ly wi h ega ds o emedia ion
penal ies, can lead o imp o ed inancial pe o mance. Fi ms ha p io i ize en i onmen al
esponsibili y and anspa ency may be iewed mo e a o ably by s akeholde s, leading o
inc eased inancial pe o mance. This is consis en wi h he s udies by Hu and Xu (2025) and
Hanjani and Kusumadewi (2023). Hu and Xu (2025) ind ha en i onmen al egula ion
penal ies signi ican ly enhance he le el o en i onmen al in o ma ion disclosu e, which can
lead o imp o ed inancial pe o mance. Hanjani and Kusumadewi (2023) also ind ha
en i onmen al pe o mance has a posi i e e ec on inancial pe o mance. These s udies
sugges ha en i onmen al penal ies disclosu e can ha e a posi i e impac on inancial
pe o mance, possibly by p omo ing anspa ency and accoun abili y.
4.4.2 Repu a ional penal ies disclosu e and e u n on asse s
The s udy's inding ha epu a ional penal ies disclosu e has a signi ican posi i e
e ec on ROA o lis ed indus ial goods i ms in Nige ia implies ha a 1% inc ease in
epu a ional penal ies disclosu e is associa ed wi h a 0.1102% inc ease in ROA. This sugges s
ha i ms ha disclose epu a ional penal ies may expe ience an 11.02% inc ease in ROA o
e e y 100% inc ease in epu a ional penal ies disclosu e. The inding implies ha i ms ha
p io i ize anspa ency and accoun abili y in en i onmen al epo ing may be iewed mo e
a o ably by s akeholde s, leading o imp o ed inancial pe o mance. The s udy by
O ajekwe and Ogbodo (2023) ound ha p o i abili y posi i ely a ec s en i onmen al
disclosu e index, indica ing g ea e anspa ency in epo ing en i onmen al ini ia i es o
mo e p o i able i ms. This s udy aligns wi h he inding ha epu a ional penal ies disclosu e
has a signi ican posi i e e ec on e u n on asse . Bo h s udies sugges ha en i onmen al
disclosu e can ha e a posi i e impac on inancial pe o mance.
4.4.3 Was e penal ies disclosu e and e u n on asse s
The s udy's inding ha was e penal ies disclosu e has a signi ican posi i e e ec on
ROA o lis ed indus ial goods i ms in Nige ia implies ha a 1% inc ease in was e penal ies
disclosu e is associa ed wi h a 0.1980% inc ease in ROA. This sugges s ha i ms ha
disclose was e penal ies may expe ience a 19.80% inc ease in ROA o e e y 100% inc ease
in was e penal ies disclosu e. The inding implies ha anspa ency in en i onmen al
epo ing, pa icula ly wi h ega ds o was e managemen , can lead o imp o ed inancial
pe o mance. Fi ms ha p io i ize en i onmen al esponsibili y and anspa ency may be
iewed mo e a o ably by s akeholde s, leading o inc eased inancial pe o mance. The
s udy by Hu and Xu (2025) inds ha en i onmen al egula ion penal ies signi ican ly
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
enhance he le el o en i onmen al in o ma ion disclosu e. This s udy aligns wi h he inding
ha was e penal ies disclosu e has a signi ican posi i e e ec on e u n on asse . Bo h
s udies sugges ha en i onmen al penal ies disclosu e can ha e a posi i e impac on
inancial pe o mance.
4.4.4 Pollu ion le y disclosu e and e u n on asse s
The s udy's inding ha pollu ion le y disclosu e has a non-signi ican nega i e e ec
on ROA o lis ed indus ial goods i ms in Nige ia implies ha a 1% inc ease in pollu ion
le y disclosu e is associa ed wi h a 0.0944% dec ease in ROA, al hough his e ec is no
s a is ically signi ican . This sugges s ha i ms ha disclose pollu ion le ies may no
expe ience a signi ican impac on inancial pe o mance. The inding implies ha pollu ion
le ies may be iewed as a necessa y cos o doing business, and ha i ms may no bene i
om disclosing his in o ma ion. The s udy by Enekwe e al. (2023) inds ha s a
de elopmen cos s ha e a nega i e bu insigni ican e ec on lis ed Nige ian oil and gas
companies' e u n on asse s. This s udy aligns wi h he inding ha pollu ion le y disclosu e
has a non-signi ican nega i e e ec on e u n on asse . Bo h s udies sugges ha ce ain
en i onmen al cos s o penal ies may no ha e a signi ican impac on inancial pe o mance.
4.4.5 En i onmen al s ingency index and e u n on asse s
The s udy's inding ha en i onmen al s ingency index has a signi ican posi i e
e ec on ROA o lis ed indus ial goods i ms in Nige ia implies ha a 1% inc ease in
en i onmen al s ingency index is associa ed wi h a 0.01291% inc ease in ROA. This
sugges s ha i ms ha ope a e in en i onmen s wi h s ic e en i onmen al egula ions may
expe ience a 1.291% inc ease in ROA o e e y 100% inc ease in en i onmen al s ingency
index. The inding implies ha i ms ha a e able o adap o s ic e en i onmen al
egula ions may be mo e likely o be inno a i e and compe i i e, leading o imp o ed
inancial pe o mance. The s udy by Bao and Yu (2023) inds ha en i onmen al egula ions
can acili a e he upg ading o co po a e inancial pe o mance. This s udy aligns wi h he
inding ha en i onmen al s ingency index has a signi ican posi i e e ec on e u n on
asse . Bo h s udies sugges ha en i onmen al egula ions can ha e a posi i e impac on
inancial pe o mance.
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summa y o indings
This p esen s udy examined he e ec o en i onmen al penal ies disclosu e on
inancial pe o mance o lis ed indus ial goods i ms in Nige ia. The independen a iable
(en i onmen al penal ies disclosu e) was p oxies by emedia ion penal ies disclosu e,
epu a ional penal ies disclosu e and was e penal ies disclosu e, pollu ion le y disclosu e and
en i onmen al s ingency index. Howe e , he dependen a iable ( inancial pe o mance)
was p oxied by e u n on asse (ROA). This s udy cen e ed on lis ed indus ial goods i ms on
he loo o he Nige ian exchange g oup (NGX) o he pe iod o 10 yea s, ha is om 2015
o 2024. The s udy elied on a panel leas squa es eg ession analysis and he esul s o
empi ical indings we e as ollows.
Remedia ion penal ies disclosu e has a signi ican posi i e e ec {Coe = 0.1957
(0.0368)} on e u n on asse o lis ed indus ial goods i ms in Nige ia.
Page No. 34
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
Repu a ional penal ies disclosu e has a signi ican posi i e e ec {Coe = 0.1102
(0.0481)} on asse o lis ed indus ial goods i ms in Nige ia.
Was e penal ies disclosu e has a signi ican posi i e e ec {Coe = 0.1980 (0.0082)}
on e u n on asse o lis ed indus ial goods i ms in Nige ia.
Pollu ion le y disclosu e has a non-signi ican nega i e e ec {Coe = -0.0944
(0.3545)} on e u n on asse o lis ed indus ial goods i ms in Nige ia.
En i onmen al s ingency index has a signi ican posi i e e ec {Coe = 0.01291
(0.0071)} on e u n on asse o lis ed indus ial goods i ms in Nige ia.
5.2 Conclusion
This s udy examined he e ec o en i onmen al penal ies disclosu e on inancial
pe o mance o lis ed indus ial goods i ms in Nige ia. The esul s sugges ha anspa ency
in en i onmen al epo ing, pa icula ly wi h ega ds o emedia ion, epu a ional, and was e
penal ies, can lead o imp o ed inancial pe o mance. This implies ha i ms ha p io i ize
en i onmen al esponsibili y and anspa ency may be iewed mo e a o ably by
s akeholde s, leading o inc eased inancial pe o mance. The indings o his s udy ha e
signi ican implica ions o i ms ope a ing in Nige ia's indus ial goods sec o , highligh ing
he impo ance o en i onmen al esponsibili y and anspa ency in achie ing inancial
success. The s udy's indings also ha e impo an implica ions o policymake s and
egula o y bodies. The esul s sugges ha en i onmen al egula ions and penal ies can ha e a
posi i e impac on inancial pe o mance, pa icula ly when i ms p io i ize anspa ency and
en i onmen al esponsibili y.
5.3 Recommenda ions
Based on he indings o his s udy, he ollowing ecommenda ions should be adhe ed o:
Lis ed indus ial goods i ms in Nige ia should p io i ize anspa ency in disclosing
emedia ion penal ies, as his can lead o imp o ed inancial pe o mance. Fi ms can
achie e his by including de ailed in o ma ion on emedia ion e o s and penal ies in
hei annual epo s and sus ainabili y epo s.
Fi ms should also p io i ize anspa ency in disclosing epu a ional penal ies, as his
can lead o imp o ed inancial pe o mance. This can be achie ed by including
in o ma ion on epu a ional isks and penal ies in hei annual epo s and
sus ainabili y epo s, and by engaging wi h s akeholde s o build us and c edibili y.
Lis ed indus ial goods i ms in Nige ia should p io i ize anspa ency in disclosing
was e penal ies, as his can lead o imp o ed inancial pe o mance. Fi ms can achie e
his by implemen ing e ec i e was e managemen sys ems and disclosing in o ma ion
on was e penal ies and emedia ion e o s in hei annual epo s and sus ainabili y
epo s.
While pollu ion le y disclosu e was ound o ha e a non-signi ican nega i e e ec on
e u n on asse , i ms should s ill p io i ize educing pollu ion and complying wi h
en i onmen al egula ions. Fi ms can achie e his by implemen ing e ec i e pollu ion
con ol measu es and in es ing in clean echnologies.
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
Policymake s and egula o y bodies in Nige ia should p io i ize en i onmen al
s ingency, as his can lead o imp o ed inancial pe o mance o lis ed indus ial
goods i ms. This can be achie ed by implemen ing and en o cing e ec i e
en i onmen al egula ions and policies, and by p o iding incen i es o i ms o adop
sus ainable business p ac ices.
5.4 Con ibu ions o knowledge
This s udy con ibu es o he exis ing body o knowledge by p o iding e idence ha
emedia ion penal ies disclosu e, epu a ional penal ies disclosu e, and was e penal ies
disclosu e ha e signi ican posi i e e ec s on e u n on asse o lis ed indus ial goods
i ms in Nige ia.
The s udy highligh s he impo ance o en i onmen al s ingency index in imp o ing
inancial pe o mance, sugges ing ha i ms ope a ing in en i onmen s wi h s ingen
en i onmen al egula ions end o pe o m be e inancially.
The inding ha pollu ion le y disclosu e has a non-signi ican nega i e e ec on
e u n on asse con ibu es o he ongoing deba e on he impac o en i onmen al cos s
on inancial pe o mance, sugges ing ha pollu ion le y disclosu e may no be a
signi ican ac o in de e mining inancial pe o mance.
The s udy p o ides indus y-speci ic insigh s in o he ela ionship be ween
en i onmen al penal ies disclosu e and inancial pe o mance in he indus ial goods
sec o in Nige ia, which can in o m decision-making by i ms and policymake s.
The s udy con ibu es o he empi ical e idence on he ela ionship be ween
en i onmen al disclosu e and inancial pe o mance, p o iding aluable insigh s o
i ms, policymake s, and s akeholde s seeking o p omo e sus ainable business
p ac ices.
5.5 Sugges ions o u he s udies
Fu u e s udies could explo e he impac o en i onmen al disclosu e on o he inancial
pe o mance me ics, such as e u n on equi y o Tobin's Q a io.
Fu he esea ch could in es iga e he ole o i m cha ac e is ics, such as i m size o
indus y ype, in mode a ing he ela ionship be ween en i onmen al disclosu e and
inancial pe o mance.
A compa a i e s udy o di e en indus ies could p o ide insigh s in o he indus y-
speci ic ac o s ha in luence he ela ionship be ween en i onmen al disclosu e and
inancial pe o mance.
Fu u e s udies could examine he impac o en i onmen al disclosu e on non- inancial
pe o mance me ics, such as cus ome sa is ac ion o employee engagemen .
Fu he esea ch could in es iga e he ole o egula o y amewo ks in shaping he
ela ionship be ween en i onmen al disclosu e and inancial pe o mance, p o iding
insigh s in o he e ec i eness o di e en egula o y app oaches.
Page No. 36
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
REFERENCES
Ahmad, N. &Ha a , A. (2013). En i onmen al disclosu es o Malaysian p ope y
de elopmen companies: Towa ds legi imacy o accoun abili y? Social Responsibili y
Jou nal, 9(2), 241-258.
Amahalu, N. (2020). E ec o en i onmen al cos disclosu e on p o i abili y o lis ed oil and
gas i ms in Nige ia. In e na ional Jou nal o Academic Resea ch in Accoun ing,
Finance and Managemen Sciences, 10(2), 157-170.
Anselm, C. & Okoye, J. (2021). En i onmen al Cos and Financial Pe o mance o Oil and
Gas Companies in Nige ia. In e na ional Jou nal o Ad anced Academic Resea ch,
6(10), 1-24.
Aslam, S., Elmag hi, M. H., U Rehman, R., &N im, C. G. (2021). En i onmen al
managemen p ac ices and inancial pe o mance using da a en elopmen analysis in
Japan: The media ing ole o en i onmen al pe o mance. Business S a egy and he
En i onmen , 30(4), 1655–1673.
Bala, H., Al-Absy, M. S. M., Ya’u, A., Abdullahi, M., & Sani, A. A. (2024). The e ec o
en i onmen al axes on en i onmen al accoun ing disclosu e o Nige ian oil and gas
companies. In e na ional Jou nal o Ene gy Economics and Policy, 14(2), 477–483.
h ps://doi.o g/10.32479/ijeep.15426
Bao, X., & Yu, B. (2023). The impac o en i onmen al egula ion on co po a e inancial
pe o mance: An empi ical s udy om China. En i onmen , De elopmen and
Sus ainabili y, 25, 15003–15023.
Bello, K. & Ogungbenle, A. (2022). De e minan s o en i onmen al disclosu e in Nige ia:
Indus y ype, le e age, and i m size. Jou nal o Financial and En i onmen al
Repo ing, 26(2), 95-112.
B ady, J., E ans, M. F., &Weh ly, E. W. (2019). Repu a ional penal ies o en i onmen al
iola ions: A pu e and scien i ic eplica ion s udy. In e na ional Re iew o Law and
Economics, 57, 60-72.
Chauhan, Y. & Sha ma, R. (2019). Examining he ela ionship be ween en i onmen al
disclosu e and ma ke alue: A s udy on lis ed Indian i ms. Accoun ing Resea ch
Jou nal, 32(1), 85-101.
Chauhan, Y. & Sha ma, R. (2019). Examining he ela ionship be ween en i onmen al
disclosu e and ma ke alue: A s udy on lis ed Indian i ms. Accoun ing Resea ch
Jou nal, 32(1), 85-101.
Chen, X., Huang, X., & Yan, H. (2024). En i onmen al penal ies and inancing punishmen :
E idence om inc emen al bank loans. Eme ging Ma ke s Finance and T ade.
Chen, X., Tao, X., & Wang, X. (2024). En i onmen al penal ies and analys
ecommenda ions: Based on he pe spec i e o nega i e en i onmen al go e nance
pe o mance. En i onmen al Enginee ing & Managemen Jou nal, 23(5), 01-09.

EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
Chiamogu, C. & Okoye, C. (2020). The impac o en i onmen al cos s on he inancial
sus ainabili y o oil i ms in Nige ia. In e na ional Jou nal o Finance and Accoun ing,
8(4), 203-218.
Chinedu, E. N. &Ogochukwu, O. G. (2020). En i onmen al accoun ing disclosu es and
inancial pe o mance o manu ac u ing i ms in Nige ia. In e na ional Jou nal in
Managemen and Social Science, 8(2), 209–228.
Chomachaei, F. R., & Golmohammadi, D. (2024). The impac o he s ingency o
en i onmen al policy on a i m's inancial pe o mance: An empi ical s udy o
Eu opean au omobile manu ac u e s. In e na ional Jou nal o Logis ics Managemen ,
35(3), 736-754
Chouaibi, S., Ha bi, J., & Zoua i, S. (2022). Boa d cha ac e is ics and co po a e
en i onmen al disclosu e in Eu opean i ms. Eu opean Jou nal o Co po a e
Go e nance, 17(3), 76-98.
Chui, M., Zheng, Y., Peng, T., & Shi, D. (2025). Impac o en i onmen al egula ion in ensi y
and digi al economy on egional en i onmen al penal ies. Finance Resea ch Le e s,
79(20), 107-116.
Deswan o, R. B., &Si ega , S. V. (2018). The associa ions be ween en i onmen al
disclosu es wi h inancial pe o mance, en i onmen al pe o mance, and i m
alue. Social esponsibili y jou nal, 14(1), 180-193.
Dikeh, M. (2020). Examining he ela ionship be ween en i onmen al disclosu e and i m’s
inancial pe o mance: A s udy o lis ed consume goods companies in Nige ia. The
Jou nal o Social Sciences Resea ch, 6(6), 47-54.
Ding, X., & Shahzad, M. (2022). E ec o en i onmen al penal ies on he cos o equi y –
The ole o co po a e en i onmen al disclosu es. Polish Jou nal o En i onmen al
S udies, 31(2), 1073–1082.
Ding, X., & Shahzad, M. (2022). En i onmen al adminis a i e penal y, en i onmen al
disclosu es, and he i m’s cash low: E idence om manu ac u ing i ms in China.
En i onmen al Science and Pollu ion Resea ch, 29, 36674–36683.
Ding, X., Appolloni, A., & Shahzad, M. (2022). En i onmen al adminis a i e penal y,
co po a e en i onmen al disclosu es, and he cos o deb . Jou nal o Cleane
P oduc ion, 332, 129919.
Ding, X., Qu, Y., & Shahzad, M. (2019). The impac o en i onmen al adminis a i e
penal ies on he disclosu e o en i onmen al in o ma ion. Sus ainabili y, 11(20), 5820.
Dowling, J., & P e e , J. (1975). O ganiza ional legi imacy: Social alues and o ganiza ional
beha io . Paci ic Sociological Re iew, 18(1), 122–136. h ps://doi.o g/10.2307/1388226
Dzomonda, O., &Fa oki, O. (2020). En i onmen al sus ainabili y commi men and inancial
pe o mance o i ms lis ed on he Johannesbu g S ock Exchange (JSE). In e na ional
Jou nal o En i onmen al Resea ch and Public Heal h, 17(20), 75-84.
Page No. 38
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
Ekpose, A. & Enidiok, B. (2021). Oil spill cos s and inancial pe o mance o lis ed oil i ms
in Nige ia. A ican Jou nal o Economic Policy, 12(1), 87-101.
Elijido-Ten, E., San os, R., Pe ez, M., & Nguyen, L. (2020). The ela ionship be ween
en i onmen al disclosu e and ma ke alue: A compa a i e s udy o Asian co po a e
i ms. Jou nal o Sus ainable Finance and In es men , 15(4), 234-256.
Emenyi, E. O., and Okpokpo, A. S. (2023). En i onmen al disclosu e and he quali y o
inancial epo s o lis ed Nige ian manu ac u ing i ms. B i ish Jou nal o Ma ke ing
S udies, 11(4), 18-53.
Emenyi, E.O. (2024)1 En i onmen al S ewa dship and Financial Risk Disclosu e Indus ial
Goods Companies in Nige ia. Eu opean Jou nal o Accoun ing, Audi ing and Finance
Resea ch, 12(8), 34-56
Emenyi, E.O. (2024)2. En i onmen al In es men Disclosu es and Financial Pe o mance o
Lis ed indus ial Goods Fi ms in Nige ia. In e na ional Jou nal o Ad ances in
Managemen and Economics. 13(04),164-179.
Eneh, O. C. (2020). En i onmen al compliance and co po a e accoun abili y in Nige ia: The
ole o penal ies and disclosu e. Jou nal o En i onmen al Sus ainabili y, 15(2), 112-
128.
Enekwe, I., Ugwudioha, O. & Uyagu, B. (2023). E ec o en i onmen al cos s on he
inancial pe o mance o lis ed oil and gas companies in Nige ia. In e na ional Jou nal
o Accoun ing Resea ch, 8(1), 31-36.
Ezeagba, C., Rachael, J., &Chiamaka, U. (2017). En i onmen al accoun ing disclosu es and
inancial pe o mance: A S udy o selec ed Food and Be e age Companies in Nige ia.
In e na ional Jou nal o Academic Resea ch in Business and Social Sciences, 7(9),
162–174.
F eeman E. R. (1984). S a egic managemen : A s akeholde app oach; Pi man, Bos on.
Ge ged, A. (2021). In e nal co po a e go e nance and co po a e en i onmen al disclosu e in
eme ging economies. Jou nal o Co po a e Sus ainabili y, 19(1), 56-74.
Guedhami, O., Pan, Y., Saadi, S., & Zhao, D. (2025). Do en i onmen al penal ies ma e o
co po a e inno a ion? Ene gy Economics, 14(1), 108-119.
Gunawan, H. & Lina, E. O. (2015). Manda o y and olun a y disclosu e o annual epo on
in es o eac ion. In e na ional Jou nal o Economics and Financial Issues, 5(Special
Issue) 311-314.
Hanjani, A., &Kusumadewi, R. K. A. (2023). En i onmen al pe o mance and inancial
pe o mance: Empi ical e idence om Indonesian companies. Co po a e Social
Responsibili y and En i onmen al Managemen , 30(3), 1508-1513.
Ha i sa , Y., Sanusi, A., &Assih, P. (2022). The e ec o en i onmen al pe o mance and
inancial pe o mance on i m alue in mining companies lis ed on he Indonesia S ock
Exchange. In e na ional Jou nal o Ad ances in Enginee ing and Managemen (IJAEM),
4(2), 427-435.
EYAH, J., EMENYI, E., & UWAH, U. (2025). ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF
LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA. GPH-In e na ional Jou nal o Business Managemen , 8(10), 01-47.
h ps://doi.o g/10.5281/zenodo.17550414
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Business Managemen
He, J., Plumlee, M. A. & Wen, J. (2018). Volun a y disclosu e, manda o y disclosu e, and
cos o capi al. Jou nal o En i onmen al and Co po a e Responsibili y, 16(3), 1-15.
Honma, S., & Hu, J.-L. (2024). How does en i onmen al policy s ingency a ec ine iciency
o i ms? New e idence om in e na ional i m-le el da a. Ci cula Economy and
Sus ainabili y, 4(2), 1539–1558.
Honma, S., & Hu, J.-L. (2024). How does en i onmen al policy s ingency a ec ine iciency
o i ms? New e idence om in e na ional i m-le el da a. Ci cula Economy and
Sus ainabili y, 4(2), 1539–1558. h ps://doi.o g/10.1007/s43615-023-00327-5.
Hu, B., & Xu, Q. (2025). En i onmen al egula ion penal ies and co po a e en i onmen al
in o ma ion disclosu e. In e na ional Re iew o Economics & Finance, 10(2), 104-114.
Hwang, H. (2019). O ganiza ional S uc u e, olun a y disclosu e, and in es men e iciency.
Jou nal o En i onmen al and Co po a e Responsibili y, 16(3), 198-215.
Kaakeh, M., &Gokmenoglu, K. K. (2022). En i onmen al pe o mance and inancial
pe o mance du ing he COVID-19 ou b eak: Insigh om Chinese i ms. F on ie s in
En i onmen al Science, 10(7), 23-32.
Khai eddine, H., Salhi, B., Aljab , J., & Ja boui, A. (2020). Impac o boa d cha ac e is ics on
go e nance, en i onmen al and e hical disclosu e. Socie y and Business Re iew, 15 (3),
273–295.
Law ence, K. & Be na d, T. (2023). Ca bon emissions and co po a e p o i abili y: A s udy o
Nige ia’s oil and gas sec o . Jou nal o Sus ainable Finance and In es men , 14(3),
309-326.
Lee, E. (2020). En i onmen al egula ion and inancial pe o mance in China: An in eg a ed
iew o he Po e hypo hesis and ins i u ional heo y. Sus ainabili y, 12(23), 10-83.
Lee, J., & Song, C. J. (2024). The e ec s o en i onmen al policy s ingency on i ms’
pe o mances: Focusing on Ko ean manu ac u ing indus y. Asian-Paci ic Economic
Li e a u e. 14(2), 77–83. h ps://doi.o g/10.1111/apel.12441.
Les a i, e al. (2024). Ca bon emissions disclosu e: e u n on asse s, le e age, and media
exposu e. DIJEFA, 5(5), 5247–5260.
Li, R., & Ramana han, R. (2024). The in e ac i e e ec o en i onmen al penal ies and
en i onmen al subsidies on co po a e en i onmen al inno a ion: Is mo e be e o
wo se? Technological Fo ecas ing and Social Change, 200, 123-193.
Li, R., Ramana han, R., & Xu, G. (2023). The impac o penal ies o en i onmen al
iola ions on co po a e en i onmen al esponsibili y. Sus ainable De elopmen , 31(3),
1343–1363.
Li, X. & Yang, H. I. (2016). Manda o y inancial epo ing and olun a y disclosu e: The
e ec o manda o y IFRS adop ion on managemen o ecas s. The Accoun ing Re iew,
91(3), 933-953.
Page No. 40
ENVIRONMENTAL PENALTIES DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA
Volume 8 Issue No 10 (2025) Access: h ps://gphjou nal.o g/index.php/bm
Liao, X., & Shi, J. (2024). Pollu ion in o ma ion disclosu e and co po a e en i onmen al
inno a ion: e idence om China's hea y-pollu ing indus ies. Jou nal o Cleane
P oduc ion, 14(2), 47–58.
Ma, R., Ji, Q., Zhai, P., & Yang, R. (2022). En i onmen al iola ions, e inancing isk, and
he co po a e bond cos in China. Jou nal o In e na ional Financial Managemen and
Accoun ing, 33(3), 480–504.
Menike, L. M. C. S. (2020). Impac o en i onmen al disclosu e on i m pe o mance: An
empi ical analysis o ood, be e age and obacco sec o companies Lis ed in Colombo
S ock Exchange, S i Lanka. In e na ional Jou nal o Academic Resea ch in Business
and Social Sciences, 10(10), 518-536.
Menike, L. M. C. S. (2020). Impac o en i onmen al disclosu e on i m pe o mance: An
empi ical analysis o ood, be e age and obacco sec o companies Lis ed in Colombo
S ock Exchange, S i Lanka. In e na ional Jou nal o Academic Resea ch in Business
and Social Sciences, 10(10), 518-536.
Nandini, E. S., Sudha ani, R., & Su esh, N. (2022). A s udy on he impac o en i onmen al
accoun ing on p o i abili y o companies lis ed in Bombay S ock Exchange. Ci cula
Economy and Sus ainabili y, 4(2), 7–15. h ps://doi.o g/10.48550/a Xi .2207.00716
Nangih, E., Emeka-Nwokeji, N. & Pe e s, G. (2022). En i onmen al disclosu es and ea nings
quali y o lis ed consume goods i ms in Nige ia. Jou nal o Accoun ing In o ma ion
and Inno a ion, 8(4), 1-17.
Ndalu, E., Okonkwo, J., & Ade unji, M. (2021). Boa d cha ac e is ics and en i onmen al
disclosu e in Nige ian oil and gas i ms: The mode a ing ole o i m size. Jou nal o
Ene gy and En i onmen al Accoun ing, 25(3), 189-207.
Nguyen, L. T. X. (2023). The ela ionship be ween en i onmen al pe o mance and inancial
pe o mance: E idence om an eme ging Eas Asian economy. In e na ional Jou nal o
Disclosu e and Go e nance, 20(1), 1-14. h ps://doi.o g/10.1057/s41310-022-00152-6.
Nkanga E. N., Akpan D. C., Nsen ip E. B. & Isaac N. E. (2023). Volun a y disclosu es and
ma ke alue o deposi money banks in Nige ia. In e na ional Jou nal o Managemen
Technology, 10(1), 38-58.
N ui, P. (2024). Co po a e go e nance amewo ks and en i onmen al disclosu e in
Tanzania’s ex ac i e indus y. Jou nal o Business and En i onmen al S udies, 45(2),
112-130.
Nwaiwu, N. J., &Oluka, N. O. (2018). En i onmen al cos disclosu e and inancial
pe o mance o oil and gas in Nige ia. In e na ional Jou nal o Ad anced Academic
Resea ch, 4(2), 57-68.
Ogunmodede, A., Adegbi e, O., & Akinbami, F. (2024). Fi m a ibu es and sus ainabili y
disclosu e: A compa a i e analysis in Nige ia’s less en i onmen ally sensi i e sec o .
Sus ainabili y and Co po a e Responsibili y Jou nal, 39(1), 87-105.