Drivers of environmental and social sustainability accounting practices in Nigeria: a corporate governance perspective
Drivers of environmental and social sustainability accounting practices in Nigeria: a corporate governance perspective
Purpose: this study aims to investigate corporate governance mechanisms affecting environmental and social sustainability accounting practice (SAP). Four internal (quality of information technology [QIT], market orientation, business strategy and structure of accounting department) and two external (environmental uncertainty and market competition) governance mechanisms were examined.
Design/methodology/approach: the population of the study is comprised of 56 publicly listed manufacturing companies on the Mainboard of the Nigerian Stock Exchange. Data were collected using a questionnaire which was completed by senior finance personnel in each company in the sample. Structural equation modelling, logistic regression and quantile regression analysis were used to analyse data.
Findings: the results show that the extent to which Nigerian companies have implemented SAP is moderate. The authors find that the level of SAP implementation is significantly associated with market orientation and business strategy, but not with the QIT and structure of accounting department. The results also show that both external corporate governance mechanisms (i.e. environmental uncertainty and intensity of competition) have no significant effect on SAP. Practical implications: The insignificant influence of external corporate governance mechanisms on SAP corroborates the contention that external pressure on companies to implement sustainability initiatives in developing countries is weak.
Originality/value: this study contributes to the literature on sustainability in developing countries and incrementally adds to knowledge on the corporate governance mechanisms driving SAP in jurisdictions characterised by lax regulatory framework and weak institutional apparatus on sustainability.
Corporate governance, Environmental accounting, Industrialisation, Nigerian manufacturing sector, Sustainability accounting, Sustainable development goals (SDGs)
Oyewo, Babajide
36c93e4d-3041-4cef-8a0d-9f72f417e249
Tawiah, Vincent
cad739a6-ffaa-4fee-9e10-307afc16c84b
Hussain, Syed Tanvir
2942f5a7-ac04-4309-b94e-2badb1d19852
Oyewo, Babajide
36c93e4d-3041-4cef-8a0d-9f72f417e249
Tawiah, Vincent
cad739a6-ffaa-4fee-9e10-307afc16c84b
Hussain, Syed Tanvir
2942f5a7-ac04-4309-b94e-2badb1d19852
Oyewo, Babajide, Tawiah, Vincent and Hussain, Syed Tanvir
(2022)
Drivers of environmental and social sustainability accounting practices in Nigeria: a corporate governance perspective.
Corporate Governance.
(doi:10.1108/CG-09-2021-0336).
Abstract
Purpose: this study aims to investigate corporate governance mechanisms affecting environmental and social sustainability accounting practice (SAP). Four internal (quality of information technology [QIT], market orientation, business strategy and structure of accounting department) and two external (environmental uncertainty and market competition) governance mechanisms were examined.
Design/methodology/approach: the population of the study is comprised of 56 publicly listed manufacturing companies on the Mainboard of the Nigerian Stock Exchange. Data were collected using a questionnaire which was completed by senior finance personnel in each company in the sample. Structural equation modelling, logistic regression and quantile regression analysis were used to analyse data.
Findings: the results show that the extent to which Nigerian companies have implemented SAP is moderate. The authors find that the level of SAP implementation is significantly associated with market orientation and business strategy, but not with the QIT and structure of accounting department. The results also show that both external corporate governance mechanisms (i.e. environmental uncertainty and intensity of competition) have no significant effect on SAP. Practical implications: The insignificant influence of external corporate governance mechanisms on SAP corroborates the contention that external pressure on companies to implement sustainability initiatives in developing countries is weak.
Originality/value: this study contributes to the literature on sustainability in developing countries and incrementally adds to knowledge on the corporate governance mechanisms driving SAP in jurisdictions characterised by lax regulatory framework and weak institutional apparatus on sustainability.
Text
OYEWO BABAJIDE PAPER CG n SAP PREPRINT
- Accepted Manuscript
More information
Accepted/In Press date: 18 August 2022
e-pub ahead of print date: 19 September 2022
Keywords:
Corporate governance, Environmental accounting, Industrialisation, Nigerian manufacturing sector, Sustainability accounting, Sustainable development goals (SDGs)
Identifiers
Local EPrints ID: 471997
URI: http://eprints.soton.ac.uk/id/eprint/471997
ISSN: 1472-0701
PURE UUID: cb01393f-19a6-4f2c-b999-6b37eb2fff62
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Date deposited: 23 Nov 2022 17:48
Last modified: 17 Mar 2024 04:08
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Contributors
Author:
Babajide Oyewo
Author:
Vincent Tawiah
Author:
Syed Tanvir Hussain
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