152
153 Table 24: Granger Causality Test for Firm Performance and Environmental Cost
Null Hypothesis: Obs F-Statistic Prob. Remarks
WMC does not Granger Cause ROCE ROCE does not Granger Cause WMC
575 0.12809 0.07868
0.7206 0.7792
No Causality No Causality CDC does not Granger Cause ROCE
ROCE does not Granger Cause CDC
576 0.01684 0.05939
0.8968 0.8075
No Causality No Causality EHSC does not Granger Cause ROCE
ROCE does not Granger Cause EHSC
574 0.05325 0.09983
0.8176 0.7521
No Causality No Causality WMC does not Granger Cause EPS
EPS does not Granger Cause WMC
511 0.66723 3.82062
0.5136 0.0225
No Causality Causality CDC does not Granger Cause EPS
EPS does not Granger Cause CDC
512 0.33091 2.27228
0.7184 0.1041
No Causality No Causality EHSC does not Granger Cause EPS
EPS does not Granger Cause EHSC
510 0.18730 0.17160
0.8293 0.8424
No Causality No Causality WMC does not Granger Cause ROE
ROE does not Granger Cause WMC
511 0.70149 0.66745
0.4963 0.5135
No Causality No Causality CDC does not Granger Cause ROE
ROE does not Granger Cause CDC
512 0.29694 0.17346
0.7432 0.8408
No Causality No Causality EHSC does not Granger Cause ROE
ROE does not Granger Cause EHSC
510 1.46220 0.35591
0.2327 0.7007
No Causality No Causality Source: Computer analysis using E-views 9.0.
South Africa
In South Africa analysis, Table 25 reveals that there is no causal relationship between environmental costs as measured by waste management, community development and employees‟ health and safety costs and firm performance proxied by return on capital employed, earnings per share and return on equity. There is no causality at 5% significance level running from environmental cost to firm performance of selected quotedfirms in South Africa. In effect, environmental costs as measured by waste management, community development and employees‟ health and safety costs has no significant effect on firm performance of selected quotedfirms in South Africa.
154 Table 25: Granger Causality Test for Firm Performance and Environmental Cost in South
Africa
Null Hypothesis: Obs F-Statistic Prob. Remarks
WMC does not Granger Cause ROCE ROCE does not Granger Cause WMC
320 0.68326 0.96448
0.5057 0.3823
No Causality No Causality CDC does not Granger Cause ROCE
ROCE does not Granger Cause CDC
320 0.34309 0.39469
0.7098 0.6742
No Causality No Causality EHSC does not Granger Cause ROCE
ROCE does not Granger Cause EHSC
318 0.94563 0.11928
0.3895 0.8876
No Causality No Causality WMC does not Granger Cause EPS
EPS does not Granger Cause WMC
320 0.62521 2.44098
0.5358 0.0887
No Causality No Causality CDC does not Granger Cause EPS
EPS does not Granger Cause CDC
320 0.21089 1.33053
0.8100 0.2658
No Causality No Causality EHSC does not Granger Cause EPS
EPS does not Granger Cause EHSC
318 0.07071 0.24499
0.9318 0.7829
No Causality No Causality WMC does not Granger Cause ROE
ROE does not Granger Cause WMC
320 0.63053 1.15937
0.5330 0.3150
No Causality No Causality CDC does not Granger Cause ROE
ROE does not Granger Cause CDC
320 0.35878 0.29272
0.6988 0.7464
No Causality No Causality EHSC does not Granger Cause ROE
ROE does not Granger Cause EHSC
318 1.33928 0.26481
0.2635 0.7675
No Causality No Causality Source: Computer analysis using E-views 9.0.
Nigeria
The Nigerian analysis depicted in Table 26 reveals also that environmental cost surrogates:
waste management, community development and employees‟ health and safety costs have no significant effect onfirm performance of selected quoted firms in Sub Saharan Africa. This is on the argument that causality do not flow from environmental cost as proxied by waste management, community development and employees‟ health and safety costs to return on capital employed, earnings per share and return on equity of firms quoted on stock exchanges in Saharan Africa. Nevertheless, it was evident that it is still earnings per share that exerts significant influence on waste management costs of selected quoted firm in Sub Saharan Africa.
155 Table 26: Granger Causality Test for Firm Performance and Environmental Cost in Nigeria
Null Hypothesis: Obs F-Statistic Prob. Remarks
WMC does not Granger Cause ROCE ROCE does not Granger Cause WMC
144 0.45407 0.17574
0.6360 0.8390
No Causality No Causality CDC does not Granger Cause ROCE
ROCE does not Granger Cause CDC
144 0.07142 0.00942
0.9311 0.9906
No Causality No Causality EHSC does not Granger Cause ROCE
ROCE does not Granger Cause EHSC
144 0.04059 0.01527
0.9602 0.9848
No Causality No Causality WMC does not Granger Cause EPS
EPS does not Granger Cause WMC
144 0.73937 3.36680
0.4793 0.0373
No Causality Causality CDC does not Granger Cause EPS
EPS does not Granger Cause CDC
144 2.77829 1.78388
0.0656 0.1718
No Causality No Causality EHSC does not Granger Cause EPS
EPS does not Granger Cause EHSC
144 0.72604 0.06043
0.4856 0.9414
No Causality No Causality WMC does not Granger Cause ROE
ROE does not Granger Cause WMC
144 0.94187 0.32588
0.3924 0.7224
No Causality No Causality CDC does not Granger Cause ROE
ROE does not Granger Cause CDC
144 0.12208 1.21357
0.8852 0.3003
No Causality No Causality EHSC does not Granger Cause ROE
ROE does not Granger Cause EHSC
144 2.05906 3.55908
0.1314 0.0311
No Causality No Causality Source: Computer analysis using E-views 9.0.
Ghana
Regarding the Ghana analysis, Table 27 unveils and revealed a surprising result. It was found that environmental cost measured by waste management, community development cost and employees‟ health and safety costs have significant effect on return on capital employed and return on equity of selected quoted firms in Sub Saharan Africa. This is on the basis that there is a unidirectional causal relationship between environmental costs: waste management, community development cost and employees‟ health and safety costs and firm performance via return on capital employed and return on equity. Causality flows from waste management, community development cost and employees‟ health and safety costs to return on capital employed and return on equity at 5% level of significance. Furthermore, it was clear that waste management, community development cost and employees‟ health and safety costs have no significant effect on earnings per share of selected quoted firms in Sub Saharan Africa.
156 Table 27: Granger Causality Test for Firm Performance and Environmental Cost in Ghana
Null Hypothesis: Obs F-Statistic Prob. Remarks
WMC does not Granger Cause ROCE ROCE does not Granger Cause WMC
32 4.00224 1.34354
0.0300 0.2778
Causality No Causality CDC does not Granger Cause ROCE
ROCE does not Granger Cause CDC
32 5.93207 0.62289
0.0073 0.5439
Causality No Causality EHSC does not Granger Cause ROCE
ROCE does not Granger Cause EHSC
32 4.36301 0.70403
0.0228 0.5034
Causality No Causality WMC does not Granger Cause EPS
EPS does not Granger Cause WMC
32 2.02190 0.23409
0.1520 0.7929
No Causality No Causality CDC does not Granger Cause EPS
EPS does not Granger Cause CDC
32 0.13881 0.67251
0.8710 0.5188
No Causality No Causality EHSC does not Granger Cause EPS
EPS does not Granger Cause EHSC
32 0.09847 2.58145
0.9065 0.0942
No Causality No Causality WMC does not Granger Cause ROE
ROE does not Granger Cause WMC
32 6.74926 1.77905
0.0042 0.1188
Causality No Causality CDC does not Granger Cause ROE
ROE does not Granger Cause CDC
32 7.00187 0.67033
0.0036 0.5198
Causality No Causality EHSC does not Granger Cause ROE
ROE does not Granger Cause EHSC
32 5.41290 0.80510
0.0106 0.4575
Causality No Causality Source: Computer analysis using E-views 9.0.
Tanzania
The Tanzania causality output in Table 28 reveals that it is only waste management cost that has significant effect on return on capital employed and return on equity of selected quoted firms in Tanzania within the period reviewed. This is evidence of causality flowing from waste management cost to return on capital employed and return on equity at 5% level of significance. Other variables of environmental cost via community development cost and employees health and safety cost have no significant influence on firm performance of firms quoted in Tanzanian stock exchange.
157 Table 28: Granger Causality Test for Firm Performance and Environmental Cost in Tanzania
Null Hypothesis: Obs F-Statistic Prob. Remarks
WMC does not Granger Cause ROCE ROCE does not Granger Cause WMC
15 5.05230 0.42665
0.0304 0.6640
Causality No Causality CDC does not Granger Cause ROCE
ROCE does not Granger Cause CDC
16 2.46366 1.08871
0.1306 0.3703
No Causality No Causality EHSC does not Granger Cause ROCE
ROCE does not Granger Cause EHSC
16 0.08450 0.18763
0.9196 0.8315
No Causality No Causality WMC does not Granger Cause EPS
EPS does not Granger Cause WMC
15 0.17723 1.22457
0.8402 0.3344
No Causality No Causality CDC does not Granger Cause EPS
EPS does not Granger Cause CDC
16 0.19784 0.81191
0.8234 0.4689
No Causality No Causality EHSC does not Granger Cause EPS
EPS does not Granger Cause EHSC
16 0.04263 0.12326
0.9584 0.8852
No Causality No Causality WMC does not Granger Cause ROE
ROE does not Granger Cause WMC
15 4.66267 0.31442
0.0371 0.7372
Causality No Causality CDC does not Granger Cause ROE
ROE does not Granger Cause CDC
16 3.49750 1.13298
0.0667 0.3569
No Causality No Causality EHSC does not Granger Cause ROE
ROE does not Granger Cause EHSC
16 0.21911 0.18242
0.8067 0.8357
No Causality No Causality Source: Computer analysis using E-views 9.0.