Global Journal of Management and Business Research, D: Accounting and Auditing, Volume 21 Issue 2

disclosure. Investigating the effect of environmental accounting disclosure on earnings per share, Perry & Singh (2011) and Norhasimah et al. (2015), in studies conducted in Malaysia, found that no relationship exists; Adeniran & Alade (2013) found a significant negative relationship in the case of Nigerian firms. An evaluation of existing studies revealed that the findings are still divergent. It is also evident that most of the studies conducted on evaluating environmental accounting disclosure and financial performance majorly focused on financial performance indices such as profitability, return on assets, return on equity, return on capital employed among others. These indices are assessing the performance from the internal perspectives; there is a need to assess how environmental disclosure financial performance of these firms from the external perspectives to determine whether it affects the valuation of this firms. This study, therefore, attempts to make a comparative study of how environmental disclosure influences the return on assets and earnings per share of multinational companies in Nigeria. The hypotheses are stated as follows: H o2 : Environmental accounting disclosure has no significant effect on return on asset of listed multinational firms in Nigeria. H o3 : Environmental accounting disclosure has no significant effect on earnings per share of listed multinational firms in Nigeria. III. D ata and M ethods a) Model Specification The study investigated the associations between the variables by adapting existing studies (Okechukwu & Okeke- Muogbo, 2020; Saman, 2019; Trireksani & Djajadikerta, 2016). The was done to see how the ideologies of the sustainability, stakeholder and agency theories can be incorporated to determine how companies can achieve results by incorporating all these ideologies into their business practice. The model is specified as follows: as: FP =f(EADI) RETA, EAPS = f(EADI) RETA it = β 0 + β 1 EADI it + e it …..……………………………………………………………i EAPS it = β 0 + β 1 EADI it + e it …..…………………………………………………………… ii Where: FP= Financial Performance EADI = Environmental Accounting Disclosure Index RETA = Return on assets EAPS=Earnings per share Β 0 = Intercept e = stochastic error term A-priori expectation in equationsi and ii based on literature review is stated thus; β 1 > 0 Table 1: Measurement of variables Variables Description Measurement Source Environmental Accounting Disclosure Environmental Accounting Disclosure It consists information that relates to the environmental activities in the disclosure index Aggregate of these disclosures as stated in index -Environmental -Material -Energy -Water -Bio-diversity -Emission -Effluents and waste disposal -Product service environmental impact -Compliance to environmental laws and regulations Trireksani & Djajadikerta (2016); Oyedokun et.al. (2019). 21 Global Journal of Management and Business Research Volume XXI Issue II Version I Year 2021 ( ) D © 2021 Global Journals Environmental Accounting Disclosure and Financial Performance of Listed Multinational Firms in Nigeria The study used ex-post facto research design since data used are available and not intended to be manipulated. The population comprises40 listed multinational firms in the consumer goods, industrial goods and oil sectors in the Nigeria Exchange Group as at 31 st December, 2020. The sample size is 34listedfirms, determined using purposive sampling technique to select firms that are in existence within the study time frame. The study covered a time frame of 2011 to 2020. Data used in this study include; return on assets, earnings per share, environmental accounting disclosure index, as shown in table 1. Data were obtained from the annual reports and sustainability reports of the firms within the time frame of the study. Data collected were analyzed using descriptive statistics and panel data regression analysis.