Assessing the Implication of Environmental Internal and External Failure costs on Return on Equity Capital of listed chemical manufacturing companies in Nigeria.

The study examined the Implication of Environmental Internal and External failure costs on Return on Equity Capital of selected listed chemical manufacturing companies in Nigerian. specifically, the paper examines pollution control equipment maintenance, environmental audits and assessments, waste reduction and recycling program and chemical plant explosion cost on Return on Equity Capital. Ex-post facto and content analysis research designs were adopted. Data collected from audited annual financial statements and sustainability reports of 8 listed chemical manufacturing firms for a period of 12 years from 2013 – 2024 was analyze using Ordinary least square regression model to estimate the influence of the independent variable on the dependent variables The results reveal that pollution control equipment maintenance, environmental audits and assessments, waste reduction and recycling program cost are positively associated with Return on Equity Capital whereas chemical plant explosion cost has a negative relationship on Return on equity. In view of the findings, the researcher concludes that effective management of Environmental Internal cost positively influences return on equity. The researcher recommends that, Chemical manufacturing industries should invest more on sustainable technology and also demonstrate responsible corporate governance, that can attract investors seeking ethically sound and profitable opportunities. Also, that, Chemical industries should improve on environmental cost management and increase their corporate image by augmenting the business's legitimacy.