Effects of Environmental Management Dynamics on Firm Value of Listed Manufacturing Firms in Nigeria
Jumoke Yinka AKINDEHIN, Olugbenga Kayode AKINFOLARIN, Ayodele Michael FABIYI, Oluyemi Benjamin ONI, Oluyemi Ayodele OLONITE* & Temitayo Emmanuel AYEJUYO
Manufacturing activities has brought about environmental health hazards to business environments. Curbing these hazardous substances, positions manufacturing firms in sustainable business operations. Based on this backdrop, this study examined the effect of environmental management dynamics on firm value of listed manufacturing firms in Nigeria. The study focused on the influence of carbon emission control cost on firm value. The study population consists of 103 manufacturing companies listed on the Nigerian Exchange Group as at 31st December, 2024. Data collected were captured from 2015-2024, from the annual reports and Social Mitigation Plan Review, of the manufacturing firms. These data were analyzed using descriptive statistics, correlation, unit root test and the regression analysis with the aid of STATA 14. From the analysis, it was found that carbon emission control cost has positive and significant effect on firm value of listed manufacturing firms in Nigeria. It was concluded that carbon emission control cost should be increased, since it drives a positive and significant growth in firm value. The study recommends that manufacturing firms in Nigeria should keep preventing environmental hazards, rather than remediating.
Keywords: Firm value, Tobin’s Q, carbon emission control, Nigeria, environmental strategies