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Authors
Godwin Terhile Kutse 1, Dr. Luper Iorpev 2, Dr. Kwaghfan Aondoakaa 3
Department of Accounting,
Rev. Fr. Moses Oshio Adasu University, Makurdi, Nigeria
Phone No: 07030819723 Email: [email protected] 1
ABSTRACT
Research Objective: The study examined the moderating effect of operational efficiency on the relationship between environmental disclosure and cost of debt for listed non-financial companies in Nigeria.
Methodology: The ex-post facto research design was employed, and the secondary data were obtained from 61 non-financial companies from 2012 to 2024. Descriptive statistics and regression techniques were used for data analysis.
Findings: The study revealed that environmental disclosure reduces the cost of debt, with a more significant effect when interacting with operational efficiency.
Conclusion: Environmental disclosure coupled with operational efficiency increases lenders’ confidence, mitigates litigation and financial stability risks, and helps avoid regulatory penalties and reputational damage. The study established that non-financial companies with higher operational efficiency and credible environmental disclosure are rewarded with favourable loan terms, therefore a lower cost of debt.
Recommendation: Non-financial companies in Nigeria should disclose adequate environmental information without compromising profitability. Furthermore, regulators should put in place a monitoring mechanism that will enhance credible environmental disclosure and ensure that by 2028, all listed companies in Nigeria will adopt the sustainability frameworks to align with the global standard.
Keywords: Environmental Disclosure, Operational Efficiency, Cost of Debt, Non-Financial Companies.
