Effect of Green Financial Management on the Performance of Corporate Organizations in Nigeria

This study examined the effect of green financial management on the performance of corporate organizations in Nigeria, with particular focus on green budgeting, green investing, and green accounting. The study adopted an ex post facto research design using secondary data obtained from the annual reports and sustainability disclosures of selected listed corporate organizations operating in key sectors of the Nigerian economy. The study covered the period from 2015 to 2024 in order to capture recent developments in the adoption of environmental financial practices among Nigerian firms. Corporate performance was measured using accounting-based indicators, while green budgeting, green investing, and green accounting were proxied using environmental expenditure allocations, investments in sustainable projects, and environmental cost disclosures respectively. Data collected were analyzed using descriptive statistics, correlation analysis, and multiple regression estimation to determine the extent to which green financial management practices influence corporate performance. The results reveal that green budgeting has a positive and statistically significant effect on corporate performance, indicating that integrating environmental objectives into financial planning improves operational efficiency and cost management. The findings also show that green investing significantly enhances corporate performance by encouraging sustainable innovation and strengthening firms’ long-term competitiveness. Furthermore, green accounting was found to positively influence corporate performance through improved transparency, environmental cost management, and stronger stakeholder confidence. The study concludes that the adoption of green financial management practices contributes significantly to improved corporate performance in Nigeria. It therefore recommends that corporate organizations strengthen the integration of environmental considerations into financial planning, investment decisions, and accounting systems in order to promote sustainable business growth and long-term organizational resilience.