Effect of Green Firms’ Characteristics on the Environmental Disclosure of Manufacturing Firms in Nigeria

• Post by: airjournals
• December 31, 2025
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Nwabuisi, A. O.¹, Ozioko, C. B.² & Ojonta, B. A.³

Abstract

This study examined the effect of green firms’ characteristics on the environmental disclosure practices of manufacturing firms in Nigeria. Specifically, the study assessed the effect of firm size and firm age on environmental disclosure. An ex-post facto research design was adopted, and data were sourced from the annual reports and accounts of manufacturing companies listed on the Nigerian Exchange Group. The study employed a panel regression technique, namely the Prais–Winsten regression with panel-corrected standard errors (PCSE), to account for serial correlation and cross-sectional dependence. The empirical results revealed that firm size exerts a positive and statistically significant effect on environmental disclosure, indicating that larger firms disclose more environmental information. Similarly, firm age was found to have a positive and significant influence on environmental disclosure, suggesting that older firms are more inclined to engage in environmental reporting practices. The study concludes that firm-specific characteristics play a significant role in shaping environmental disclosure behavior among manufacturing firms in Nigeria. It is therefore recommended that regulatory authorities and policymakers design targeted policies that encourage smaller and younger firms to improve their environmental disclosure practices through institutional support and disclosure incentives.

Keywords: Green Firms’ Characteristics; Environmental Disclosure of Manufacturing Firms; Environmental Reporting

Cite as:
Nwabuisi, A. O., Ozioko, C. B. & Ojonta, B. A. (2025). Effect of Green Firms’ Characteristics on the Environmental Disclosure of Manufacturing Firms in Nigeria. Global Journal of Auditing and Finance, 7(1), 18-27. https://doi.org/10.5281/zenodo.18406592