RESPONSIVENESS OF ORGANIZATIONAL PERFORMANCE TO ENVIRONMENTAL ACCOUNTING INFORMATION OF MOTOR VEHICLE MANUFACTURING ORGANIZATIONS IN SOUTH EAST, NIGERIA.
This study is aimed at examining the responsiveness of organizational performance to environmental accounting information of motor vehicle manufacturing firms in South East, Nigeria. Past studies show that there is a gap as a result of gross inadequacy in including environmental costs in processing firm accounting information. The data sources were mainly primary. The simple survey design was used in carrying out the research, employing questionnaire method, interviews, phone calls and e-mails. Judgmental techniques were employed in the sample selection from the population. Hypotheses formulated were tested, using appropriate test statistics, Analysis of Variance ( ANOVA) for Hypothesis 1 and the Pearson’s product moment correlation co-efficient (PPMCC) for Hypothesis II, Hypothesis III and Hypothesis IV. Data collected were presented using tables, figures, and analyzed with the appropriate test statistic as mentioned above. The results of the hypotheses testing reveal as follows: Hypothesis I: Environmental cost allocation processes adopted by motor vehicle manufacturing firms in South East, Nigeria are not significantly different (p>0.05). Hypothesis II: Environmental consciousness had significant positive relationship with firm size (p<0.05). Hypothesis III: Environmental cost disclosure in the financial report had significant positive relationship with firm profitability (p<0.05). Hypothesis IV: There is significant positive relationship between environmental cost and firm profitability (p<0.05). The study discovered that environmentally- friendly firms perform better and significantly disclose environmental related information in financial statements and reports. It is relevant to the extent that the management of the motor vehicle manufacturing firms should make use of the result to plan the firms’ operations to achieve effective performance. It is suggested that future works should address the issue of Environmental Accounting Information with respect to manufacturing firm performance, not excluding non-manufacturing firms. Furthermore, it is of great relevance not to limit the impact of environmental cost to firm performance, but to emphasize on the mandatory inclusion of environmental costs in processing accounting information at all levels of firm operation.