CARBON ACCOUNTING INFORMATION DISCLOSURE AND INVESTORS’ ATTITUDES TOWARDS INVESTING IN NIGERIAN ECONOMY

Abstract

Users of financial reports of companies have shifted their interest from only profitability to efforts of enterprises in addressing environmental problems, global climate change, carbon reduction, and their vision for green development. Business stakeholders particularly investors are more interested in investing their funds in enterprises that demonstrate commitment to de-carbonization and reduction of harmful effects of their operation on society and reporting. Reporting/disclosure is an issue in Nigeria where Carbon Accounting Information Disclosure (CAID) is voluntary. The voluntary disclosure has generated doubts about whether it has impacted on investors' attitudes to commit their funds to enterprises in the Nigerian economy. The aim of this study there is to examine the impact of CAID on the attitudes of investors to invest in enterprises in Nigeria. Data for the study were collected primarily through a questionnaire administered to a sample of investors in corporate enterprises in Nigeria. Analysis of the data was done through Partial Least Square Structural Equation Modeling (PLS-SEM). Results indicated that the disclosure has a positive and significant impact on investors' attitudes toward investing in enterprises in the Nigerian economy. The study recommended that the government should by legislation make CAID compulsory in Nigeria, especially for those enterprises whose activities have a direct impact on the environment and society.