The Impact of Environmental Accounting Practices on Market Volatility of Listed Natural Resources Firms in Nigeria

This paper examines how environmental accounting practices affect the market volatility of listed natural resources companies in Nigeria. Based on the stakeholder theory and a positivist philosophy of research, the study utilizes an ex post facto research design to examine the effects of environmental, economic, and social practices of accounting on stock price fluctuations. A purposive sample of 8 listed firms was sampled out of the study population of 12 listed firms, which were sampled out of data availability. Annual reports were used to extract secondary data between 2014 and 2023. Descriptive statistics, correlation, multicollinearity and heteroskedasticity tests, and pooled Ordinary Least Squares (OLS) regression were used to analyze data through the use of STATA 17. Results indicate that, environmental and economic accounting practices indicate a negative though statistically insignificant impact on the market volatility, whereas social accounting practices indicate a significant impact of the market volatility of listed natural resources companies in Nigeria. The paper concludes that the existing inadequate regulatory framework and non-uniform implementation of environmental and economic disclosures restrict the Nigerian listed natural resources companies market impact. Consequently, it suggests that regulators should implement obligatory standards relating to sustainability reporting and investor education should also be encouraged to emphasize the necessity of non-financial reporting. The listed natural resources companies in Nigeria are advised to enhance their social responsibility initiatives in order to promote confidence in the market and mitigate volatility.