ENVIRONMENTAL ACCOUNTING AND DECISION MAKING OF SELECTED BANKS IN NIGERIA Environmental Accounting, Decision-Making, Financial Performance, Nigerian Banks, Sustainability Practices Section Articles

Abstract

This research examines the influence of environmental accounting on decision-making processes in specific Nigerian banks, employing a survey of twenty participants from United Bank for Africa, Guarantee Trust Bank, Ecobank, Wema Bank, and Polaris Bank. The study utilized descriptive and correlational methodologies, employing purposive and convenience sample procedures. The data were examined utilizing descriptive statistics, Pearson correlation, and regression analysis. The results demonstrate a moderate albeit statistically insignificant positive relationship between environmental accounting and decision-making processes. The incorporation of renewable energy in ATMs and the consideration of waste management expenses in financial statements demonstrated a notable, albeit statistically insignificant, effect on banking decisions. The disclosure of environmental costs showed a moderate yet insignificant effect on decision-making processes. Identified key problems included the substantial expense of executing environmental accounting and an absence of regulatory impetus. Notwithstanding these obstacles, environmental advantages, like heightened referrals from customers and business growth, were noted. The results align with legitimacy theory, as certain banks acquired goodwill from clients via sustainable practices, and stakeholder theory, as banks responded to community requirements such as clean water, healthcare, and education. The paper advocates for additional qualitative research to investigate the effects of environmental accounting on decision-making and the characteristics of environmental accounts held by banks.