Effect of Environmental Protection Cost on Return on Equity of Petroleum Marketing Companies in Nigeria?

Abstract

This paper evaluates the effect of environmental protection cost on return on equity of petroleum marketing companies in Nigeria. A panel data spanning a period of fifteen years from 2004-2018 was used, which was sourced from Nigerian Stock Exchange Factbook and annual account and report of twelve (12) petroleum  marketing companies in Nigeria. Regression was used in testing the hypothesis of the paper. The paper found that environmental protection cost has positive and significant effect on return on asset of petroleum marketing companies in Nigeria. Therefore, the paper recommends that management of petroleum marketing companies in Nigeria should increase their participation on Environmental protection and Environmental remediation and pollution control to their host communities in order to maximized profitability most especially the return on asset of the sampled petroleum marketing companies in Nigeria.