INTERNATIONAL JOURNAL OF ADVANCE RESEARCH
IN MULTIDISCIPLINARY

Past research on the relationship between environmental cost accounting and firm value has not provided clear conclusions, largely because of a focus on environmental cost accounting itself. It is necessary to move away from simply disclosing environmental accounting variables and instead focus on disclosing the elements of environmental cost accounting. This study examined the different cost components involved in environmental cost accounting. The research involved gathering data from the annual reports, environmental impact assessments, environmental and social mitigation plan reviews, environmental audit reports, and sustainability reports of manufacturing companies listed on the Nigeria Exchange Group as of December 31, 2023. This data covers an 11-year period from 2012 to 2022. The data was analyzed using descriptive statistics and regression analysis. The research discovered that environmental prevention costs have a significant negative impact on firm value, while environmental remediation costs have a significant positive impact. Environmental waste management costs have a positive but insignificant impact on firm value. It was determined that the lack of expenditure on certain environmental costs, such as prevention, remediation, and waste management, can affect firm value. Manufacturing firms in Nigeria are advised to implement sustainable policies to encourage their involvement in environmental initiatives. The study suggests maintaining environmental prevention costs as they play a significant role in explaining changes in firm value, and recommends focusing more on environmental remediation and waste management costs.