DETERMINANT OF ENVIRONMENTAL DISCLOSURE OF FIRMS QUOTED ON THE NIGERIA STOCK EXCHANGE: A CASE STUDY OF THE MANUFACTURING SECTOR
ABSTRACT
This study is motivated by a desire to examine the determinants of disclosure of environmental disclosure of firms quoted on the Nigeria Stock Exchange. A sample of 10 manufacturing companies listed in the Nigerian Stock Exchange was selected as the sample size covering the period of five year (2007 – 2011) financial year. In light of the empirical review and other discussions, a number of questions arose as to whether leverage, profitability, or company size exerts a positive influence on firm’s decision to disclose environmental issues. Using the Ordinary Least Square (OLS) regression technique with the aid of a computer software E-view 7.0, the empirical findings revealed among other things that, leverage, profitability, and company size exerts a positive influence on firm’s decision to disclose environmental issues We recommend among other things that, environmental auditors working as consultants, in industry, and in government must continue to educate clients as to what various types of environmental auditing are and are not, and what they can and cannot do for the client.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
Background to the Study                     
Statement of Research Problem                
Objectives of the Study                     
Hypothesis of the Study                    
Scope of the Study                            
Significance of Study                         
Limitations of the Study                    
References                             
CHAPTER TWO: LITERATURE REVIEW
2.0    The Environment                        
2.1    Environmental Standards                     
2.2    Environmental Protection in Nigeria                
2.3    Environmental Problems                        
2.4    Environmental Policy                        
2.5    Environmental Impact Assessment (EIA)            
2.6    Environmental Management System (EMS)             
2.7    Corporate Social Responsibility                 
2.8    Environmental Accounting                         
2.9    Problems of Environmental Accounting            
2.10    Significance of Environmental Accounting             
2.11    Environmental Auditing                    
2.12    Environmental Sustainability                 
2.13    Corporate Environmental Management Strategies        
References                            
CHAPTER THREE: METHODOLOGY
Introduction                             
Research Design                         
Population and Sample                    
Data Collection Method and Measurement of Variables      
3.5     Sources of Data                         
3.6    Model Specification                             
3.7    Data Analysis Techniques: (Binary Logistic Regression
Models)                                
3.8     Measurement of Variables                     
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
Introduction                            
Data Description                        
Binary Regression Results                    
Discussion of Regression Result                
Test of Hypotheses                    
CHAPTER FIVE:    SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
Introduction                            
Summary of Findings                     
Recommendations                     
Conclusion                             
References                         
Appendix                             
CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
The awareness of the environment and man’s ability to cause damage started from the fifties, in the last century. In 1972, a world conference was held in Stockholm where heads of states from all over the world came together for the first time to consider the state of the globe as a whole, which ultimately gave birth to a special UN agency titled UN Environmental Program (UNEP). This agency was to deal with environmental issues. In the mid-eighties, the World Commission on Environment and Development (WCED), known as Bruntdland Commission, was established by the UN. The Commission published a report, called Our Common Future in 1987, with the proposed concept of ‘sustainable development’. This concept received worldwide acceptance and led to the convening of the UN Conference on Environment and Development (UNCED) in Roe de Jenerio, Brazil in 1992, known as “EARTH SUMMIT”. In this conference, heads of different states signed four agreed document including the Agenda 21. The Agenda 21 contains a checklisk of do’s and don’ts to protect the environment through the next century. Particularly, the role of corporate entities in respect of overall management of the environment has been duly recognized in this conference (Uwuigbe and Egbide, 2012).
Over the past decade, Nigeria has witnessed tremendous economic and social changes. As a result, the business environment is also becoming more complex and demanding. One of the emerging issues that confront modern-day businesses is that of environmental disclosure. However, due to the heightened interest in the concept of environmental disclosure and what it entails, much research has been done in this area, particularly in the developed countries. In contrast, the developing countries are slower in responding to the increased concern about the issue of environmental disclosure. Dispite some intense research (Guobabdia, 2000; Hjalte and Larsson, 2003; Ite, 2004 and Amaeshi, Adi, Ogbechie and Amao, 2006; Belal, 2001; Imam, 2000; and Tsang, 1998), studies in this area in the developing countries are still scarce.
To this end therefore, this study attempts to address this gap in literature by examining whether there is a significant relationship between firms attributes (financial performance, financial leverage and size of audit firms) and the level of environmental disclosure of the selected firms in the Nigeria Stock Exchange.   
STATEMENT OF RESEARCH PROBLEM
In spite of the apparent policy shift towards increased use of environmental disclosure, to date there remains little systematic empirical evidence that environmental disclosure significantly increases environmental performance, particularly compliance with environmental regulations. Hence, this study is to investigate the willingness of corporate firms to conduct environmental auditing.
In the light of this, the following research questions are raised:
Does leverage exerts a positive influence on firm’s decision to disclose environmental issue?
Does profitability exerts a positive influence on firm’s decision to disclose environmental issue?
Does company size influence the decision of companies to disclose environmental issue?
OBJECTIVES OF THE STUDY
The objectives of the study are:
To find out whether leverage exerts a positive influence on firm’s decision to disclose environmental issue.
To examine whether profitability exerts a positive influence on firm’s decision to disclose environmental issue.
To ascertain whether company size influence the decision of companies to environmental issue.
HYPOTHESES OF THE STUDY
This study has the following hypotheses
Hypothesis I
Ho:    Leverage does not exert a positive influence on firm’s decision to disclose in environmental issue.
H1:    Leverage exert a positive influence on firm’s decision to disclose in environmental issue
Hypothesis II
Ho:    Profitability does not exert a positive influence on firm’s decision to disclose environmental issue.
H1:    Profitability exerts a positive influence on firm’s decision to disclose environmental issue.
Hypothesis III
Ho:    Company size does not influence the decision of companies to disclose environmental issue.
H1:    Company size influences the decision of companies to disclose environmental issue    
SCOPE OF THE STUDY
This research work is an empirical study to investigate the determinants of disclosure of environmental disclosure of firms quoted in the Nigeria Stock Exchange, a case study of the manufacturing sector.
This study is restricted to a cross sectional study of 10 companies listed on the Nigerian Stock Exchange (NSE). The choice of companies from different sectors of the economy is to allow for a vast and robust study, as well as the decision relevance of the subject matter. The total annual reports of the selected companies will be used to facilitate the robustness and the informativeness of the study.
The study will cover a five (5) year period (2007 – 2011).
SIGNIFICANCE OF STUDY
This study will be beneficial to stakeholders in both manufacturing and non-manufacturing sector on the importance of environmental auditing.
It will assist the government, regulatory agencies and policy-makers on the proper conduct of environmental auditing on corporate firms.
This study will help to restore the lost confidence of the public as regard the environmental auditing.
Both academic and other future researchers in this similar subject matter will find it a useful source of learning and research.  
LIMITATIONS OF THE STUDY
There is no study undertaken by a researcher that is perfect. As such this study is not a perfect one. This is due to some constraints that affect the student researcher in the course of the study. These constraints are:
Inadequate Study Materials: Research materials were of limited supply due to the practicality of the study. Where they were available; the cost involved in sourcing for them was very expensive.    
Lack of Access to Current Data: Most managements and staff of the establishment would not want to disclose important or relevant information about their organizations on this subject matter, except were such is permitted by law to be disclosed.  
Finance Cost: The cost involved in sourcing for the available materials and other necessary information was very high within the reach of the student researcher.
REFERENCES
Uwuigbe, U. and Egbide, C. B. (2012, Corporate Social Responsibility Disclosures in Nigeria: A Study of Listed Financial and Non-Financial firms, Journals of Management and Sustainability,, Vol. 2, No. 1, pp. 160 – 169.
Guobadia, A. (2000), Protecting Minority and Public Interests in Nigeria Company Law: The Corporate Affairs Commission as a Corporations Ombudsman, In: F. McMillian (ed.) International Company Law Annual, Vol. 1, pp. 81 – 145.
Hjalte, S. and Larsson, S. (2003), Communication and Reporting of Corporate Social Responsibility: A Study of ABB. Working Paper No. 142.
Ite, U. E. (2004), Multinationals and Corporate Social Responsibility in Developing Countries: A Case Study of Nigeria. Corporate Social Responsibility and Environmental Management, Vol. 11, No. 1, pp. 1 – 11.
Amaeshi, K. M., Adi, B. C., Ogbechie, C., and Amao, O. O. (2006), Corporate Social Responsibility in Nigeria: Western Mimicry or Indigenous Practices? Research Paper Series – ISSN 1479-5124, International Centre for Corporate Social Responsibility Nottingham University Business School.
Tsang, E. K. (2008), A Longitudinal Study of Corporate Social Reporting in Singapore: The Case of the Banking, Food and Beverage and Hotel Indutries. Accounting, Auditing and Accountability Journal, Vol. 11, No. 5, pp. 624 – 635.