ENVIRONMENTAL COST AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Environmental footprint issues have assumed global concern in recent times. Based on this, this study examined the relationship between environmental cost and financial performance of listed consumer goods companies in Nigeria. However, the specific objectives were to determine the benefits of environmental remediation cost in terms of return on investment in listed consumer goods companies in Nigeria, to examine the effect of research and development cost on return on investment in listed consumer goods companies in Nigeria and to evaluate the importance of regulatory compliance cost to the return on investment in listed consumer goods companies in Nigeria. Ex-post facto research design was adopted, and panel data covering ten (10) years (2013-2022) were collected across eighteen (18) listed consumer goods firms in Nigeria which formed the sample size of the study. The data collected were analyzed using descriptive statistics and panel multiple regression analysis via E-views 10.0 statistical package. The study findings revealed that environmental remediation cost has an insignificant negative relationship (Coeff. = -0.6487{0.8958}) with return on investment of listed consumer goods firms in Nigeria while research and development cost have a significant positive relationship (Coeff. = 5.9207{0.0008}) with return on investment of listed consumer goods firms in Nigeria. It also revealed that regulatory compliance cost has a significant negative relationship (Coeff. = -0.3944{0.0010}) with return on investment of listed consumer goods firms in Nigeria. It was thus concluded that environmental cost exerts significant effect on the financial performance of listed consumer goods companies in Nigeria. The study recommended, amongst others, that consumer goods firms should consider increasing their investment in research and development as this will definitely lead to innovation and improved product offerings, which in turn can enhance financial performance and market competitiveness.