Environmental Cost and Market Share of Listed Manufacturing Companies in Nigeria

Abstract

"The study examines the impact of environmental cost, controlled by firm size and firm age; on the market share of listed manufacturing companies in Nigeria from 2007 to 2017. The descriptive research design was adopted for the study. Twenty listed manufacturing companies were purposively drawn from the population of sixty manufacturing companies listed on the floor of the Nigerian Stock Exchange as of 31 December 2017. The study’srelevant figures were extracted from the annual reports and accounts as well as the stand-alone environmental information of the selected companies over eleven years, from 2007-2017. Panel regression analysis was used to examine the impact of the proxies to independent variable on the dependent variable. Findings from the panel fixed-effect regression analysis showed that environmental cost had a significant impact on market share (F= 56.20, p < .05) at 5% level of significance. The study, therefore, concludes that environmental cost has a positive significant effect on the market share of listed manufacturing companies in Nigeria. The study recommends that manufacturing companies should increase their financial commitment to issues of environmental concerns to increase their market share."