Analyzing The Influencing Factors Associated with Environmental Reporting in The Context of Green Accounting Implementation
DOI:
https://doi.org/10.56830/IJAMS10202213Keywords:
Environmental Reporting, , Environmental Disclosure, Green AccountingAbstract
The research aims to analyze the influencing factors associated with environmental reporting in the context of green accounting implementation. The research is organized to present a discussion on green/environmental accounting, a literature review related to environmental reporting, and concepts, benefits, obstacles, and influencing factors associated with environmental reporting. The study methodology was based on a field survey the researcher directed the questionnaire to the stakeholders (investors, financial analysts, creditors, and auditors) of the Egyptian listed firms. Only 427 questionnaires with responses Were collected and included 11 incomplete questionnaires. Only 416 questionnaires were statistically valid and free of missing data, with a response rate of 88.89%.
The researcher concluded that external and internal factors associated with environmental reporting have a significant direct positive impact on the benefits of environmental reporting. External and internal factors associated with environmental reporting have a significant direct negative impact on the obstacles of environmental reporting.
References
Adeyemi A., Bakare O., Akindele A. & Soyode O., 2021, “Impact of the oversight role of NGOS on the environmental reporting and social responsibility of listed manufacturing companies in Nigeria”, Advances in Environmental Accounting & Management, Vol. 9, 107–121. DOI: https://doi.org/10.1108/S1479-359820200000009006
- Agyei S. & Yankey B., 2019, “Environmental reporting practices and performance of timber firms in Ghana Perceptions of practitioners”, Journal of Accounting in Emerging Economies, Vol. 9, No. 2, 268-286. DOI: https://doi.org/10.1108/JAEE-12-2017-0127
- Agyemang A., Yusheng K., Twum A., Ayamba E., Kongkuah M. & Musah M., 2021, “Trend and relationship between environmental accounting disclosure and environmental performance for mining companies listed in China”, Environment, Development and Sustainability, 23, 12192– 12216. - Al-Dhaimesh O., 2020, “Green accounting practices and economic value added: An applied study on companies listed on the Qatar Stock Exchange”, International Journal of Energy Economics and Policy, 10(6), 164-168. DOI: https://doi.org/10.1007/s10668-020-01164-4
- Alipour M., Ghanbari M., Jamshidinavid B. & Taherabadi A, 2019, “The relationship between environmental disclosure quality and earnings quality: a panel study of an emerging market”, Journal of Business Studies, Vol. 13, No. 2, 326-347. DOI: https://doi.org/10.1108/JABS-03-2018-0084
- Alipour M., Ghanbari M., Jamshidinavid B. & Taherabadi A., 2019, “Does board independence moderate the relationship between environmental disclosure quality and performance? Evidence from static and dynamic panel data”, Corporate Governance, Vol. 19, No. 3, 580-610. DOI: https://doi.org/10.1108/CG-06-2018-0196
- Aliyu U., 2019, “Board characteristic and corporate environmental reporting in Nigeria”, Asian Journal of Accounting, Vol. 4, No. 1, 2-17. DOI: https://doi.org/10.1108/AJAR-09-2018-0030
- Alshbili I., Elamer A. & Moustafa M., 2021, “Social and environmental reporting, sustainable development and institutional voids: Evidence from a developing country”, Corporate Social Responsibility and Environmental Management, 28, 881–895. DOI: https://doi.org/10.1002/csr.2096
- Alvarez I. & Martínez M., 2020, “How cultural dimensions, legal systems, and industry affect environmental reporting? Empirical evidence from an international perspective”, Business Strategy and the environment, 29, 2037–2057. DOI: https://doi.org/10.1002/bse.2486
- Anh N., La Soa N. & Hanh H., 2020, “Environmental accounting practices and cost of capital of enterprises in Vietnam”, Cogent Economics & Finance, 8, 1-17. DOI: https://doi.org/10.1080/23322039.2020.1790964
- Arena C., Bozzolan S. & Michelon G., 2015, “Environmental Reporting: Transparency to Stakeholders or Stakeholder Manipulation? An Analysis of Disclosure Tone and the Role of the Board of Directors”, Corporate Social Responsibility and Environmental Management, 22, 346–361. DOI: https://doi.org/10.1002/csr.1350
- Baalouch F., Ayadi S. & Hussainey K., 2019, “A study of the determinants of environmental disclosure quality: evidence from French listed companies”, Journal of Management and Governance, 23, 939–971. DOI: https://doi.org/10.1007/s10997-019-09474-0
- Bhattacharyya A. & Agbola F., 2018, “Social and Environmental Reporting and the Co-creation of Corporate Legitimacy”, Contemporary Management Research, Vol. 14, No. 3, 191-223. DOI: https://doi.org/10.7903/cmr.18247
- Bhattacharyya A., 2014, “Factors Associated with the Social and Environmental Reporting of Australian Companies”, AABFJ, Vol. 8, No. 1, 25-50. DOI: https://doi.org/10.14453/aabfj.v8i1.3
- Blanca, M. J., Arnau, J., López-Montiel, D., Bono, R., & Bendayan, R., 2013, Skewness and kurtosis in real data samples, Methodology, 9(2), 78-84. DOI: https://doi.org/10.1027/1614-2241/a000057
- Blunch, N., 2012, Introduction to structural equation modeling using IBM SPSS statistics and AMOS, 2nd ed., SAGE Publications Ltd. DOI: https://doi.org/10.4135/9781526402257
Borgstedt P., Nienaber A., Liesenkötter B. & Schewe G., 2019, “Legitimacy Strategies in Corporate
Environmental Reporting: A Longitudinal Analysis of German DAX Companies’ Disclosed Objectives”, Journal of Business Ethics, 158, 177–200. DOI: https://doi.org/10.1007/s10551-017-3708-y
- Braam G., Weerd L., Hauck M. & Huijbregts M., 2016, “Determinants of corporate environmental reporting: the importance of environmental performance and assurance”, Journal of Cleaner Production, 129, 724-734. DOI: https://doi.org/10.1016/j.jclepro.2016.03.039
- Buniamin S., Alrazi B., Johari N. & Abd Rahman N., 2011, “Corporate Governance Practices and Environmental Reporting of Companies in Malaysia: Finding Possibilities of Double Thumbs Up”, Jurnal Pengurusan, 32, 55 – 71. DOI: https://doi.org/10.17576/pengurusan-2011-32-06
- Byrne B.M., 2010, Structural equation modeling with AMOS: Basic concepts, applications, and programming, 2nd ed., New York: Routledge.
- Chelli M., Durocher S. & Fortin A., 2018, “Normativity in Environmental Reporting: A Comparison of Three Regimes”, Journal of Business Ethics, 149, 285–311. DOI: https://doi.org/10.1007/s10551-016-3128-4
- Clarkson P., Overell M. & Chapple L., 2011, “Environmental Reporting and its Relation to Corporate Environmental Performance”, ABACUS, Vol. 47, No. 1, 27-60. DOI: https://doi.org/10.1111/j.1467-6281.2011.00330.x
- Deegan C., 2013, “The accountant will have a central role in saving the planet . . . really? A reflection on ‘green accounting and green eyeshades twenty years later”, Critical Perspectives on Accounting, 24, 448-458. DOI: https://doi.org/10.1016/j.cpa.2013.04.004
- Dobbs S. & Staden C., 2016, “Motivations for corporate social and environmental reporting: New Zealand evidence”, Sustainability Accounting, Management and Policy Journal, Vol. 7, No. 3, 449472. - Endiana D., Dicriyani L., Adiyadnya S. & Putra P., 2020, “The Effect of Green Accounting on Corporate Sustainability and Financial Performance”, Journal of Asian Finance, Economics and Business, Vol. 7, No. 12, 731–738. DOI: https://doi.org/10.13106/jafeb.2020.vol7.no12.731
- Fernandes S., Bornia A. & Nakamura L., 2019, “The influence of boards of directors on environmental disclosure”, Management Decision, Vol. 57, No. 9, 2358-2382. DOI: https://doi.org/10.1108/MD-11-2017-1084
- Gerged A., 2021, “Factors affecting corporate environmental disclosure in emerging markets: The role of corporate governance”, Business Strategy and the environment, 30, 609–629. DOI: https://doi.org/10.1002/bse.2642
- Gerged A., Beddewela E. & Cowton C., 2021, “Is corporate environmental disclosure associated with firm value? A multicountry study of Gulf Cooperation Council firms”, Business Strategy and the environment, 30, 185–203. DOI: https://doi.org/10.1002/bse.2616
- Giang N., Binh T., Thuy L., Haa D. & Loan C., 2020, “Environmental accounting for sustainable development: An empirical study in Vietnam”, Management Science Letters, 10, 1613–1622. DOI: https://doi.org/10.5267/j.msl.2019.12.005
- Gonzalez C. & Mendoza K., 2021, “Green accounting in Colombia: a case study of the mining sector”, Environment, Development and Sustainability, 23, 6453–6465. DOI: https://doi.org/10.1007/s10668-020-00880-1
- Hair, J. F., Anderson, R. E., Babin, B. J., & Black, W. C., 2010, Multivariate data analysis: A global perspective, Upper Saddle River, NJ: Pearson.
- He C. & Loftus J., 2014, “Does environmental reporting reflect environmental performance?”, Pacific Accounting Review, Vol. 26, No. 1/2, 134-154. DOI: https://doi.org/10.1108/PAR-07-2013-0073
- Helfaya A., Whittington M. & Alawattage C., 2019, “Exploring the quality of corporate environmental reporting Surveying preparers’ and users’ perceptions”, Accounting, Auditing & Accountability Journal, Vol. 32, No. 1, 163-193. DOI: https://doi.org/10.1108/AAAJ-04-2015-2023
- Hussain H., Kot S., Thaker H. & Turner J., 2020, “Environmental reporting and speed of adjustment to target leverage: Evidence from a dynamic regime switching model”, Organizacija, 53(1), 21-35. DOI: https://doi.org/10.2478/orga-2020-0002
Ifada L., Indriastuti M., Ibrani E. & Setiawanta Y., 2021, “Environmental Performance and Environmental Disclosure: The Role of Financial Performance”, Journal of Asian Finance, Economics and Business, Vol. 8, No. 4, 349–362.
- Indrasari A., Nugraheni P., Hamzah N., Maelah R., 2021, “Motivational Factors of Implementing Corporate Social and Environmental Reporting and Its Impact on Performance”, Journal of Asian Finance, Economics and Business, Vol. 8, No. 2, 883–892.
- Iredele O., 2020, “Measuring performance in corporate environmental reporting in Nigeria”, Measuring Business Excellence, Vol. 24, No. 2, 183-195. DOI: https://doi.org/10.1108/MBE-05-2019-0040
- Ismail A., Rahman Y. & Hezabr A., 2018, “Determinants of corporate environmental disclosure quality of oil and gas industry in developing countries”, International Journal of Ethics and Systems, Vol. 34, No. 4, 527-563. DOI: https://doi.org/10.1108/IJOES-03-2018-0042
- Jeroh E., 2020, “An assessment of the internal determinants of the environmental disclosure practices of firms across Sub-Saharan Africa”, Ekonomski Horizonti, Vol. 22, No. 1, 47-59. - Kassim C., Nasir N., Ahmad S., Nori W. & Arifin N., 2021, “Institutional Isomorphism on Environmental Reporting Practices in Malaysian Local Governments”, Management and Accounting Review, Vol. 20, No. 2, 1-34. DOI: https://doi.org/10.5937/ekonhor2001047J
- Kassim C., Nasir N., Ahmad S., Nori W. & Arifin, 2019, “Environmental reporting by the Malaysian local governments”, Meditari Accountancy Research, Vol. 27, No. 4, 633-651. DOI: https://doi.org/10.1108/MEDAR-02-2019-0444
- Kilincarslan E., Elmagrhi M. & Li Z., 2020, “Impact of governance structures on environmental disclosures in the Middle East and Africa”, Corporate Governance, Vol. 20, No. 4, 739-763. DOI: https://doi.org/10.1108/CG-08-2019-0250
- Kouloukoui D., Anna A., Gomes S., Marinho M., Jong P., Kiperstok A. & Torres E., 2019, “Factors influencing the level of environmental disclosures in sustainability reports: Case of climate risk disclosure by Brazilian companies”, Corporate Social Responsibility and Environmental Management, 26, 791–804. DOI: https://doi.org/10.1002/csr.1721
- Lee H., Liub C., Yaina Y & Lin C., 2020, “Intellectual capital for green accounting in agribusiness”, International Food and Agribusiness Management Review, Vol. 23, Iss. 5, 759-765. DOI: https://doi.org/10.22434/IFAMR2020.0028
- Maama H. & Appiah K., 2019, “Green accounting practices: lesson from an emerging economy”, Qualitative Research in Financial Markets, Vol. 11, No. 4, 456-478. DOI: https://doi.org/10.1108/QRFM-02-2017-0013
- Maama H., Akande J. & Doorasamy M., 2021, “NGOs’ engagements and Ghana’s environmental accounting disclosure quality”, Advances in Environmental Accounting & Management, Vol. 9, 83– 106. DOI: https://doi.org/10.1108/S1479-359820200000009005
- Martínez M., Oms I. & Rodrigues L., 2020, “Does stakeholder engagement encourage environmental reporting? The mediating role of firm performance”, Business Strategy and the environment, 29, 3025–3037. DOI: https://doi.org/10.1002/bse.2555
- Mathuva D., Wachira M. & Injen G., 2019, “Does corporate environmental reporting improve stock liquidity? evidence from Kenyen listed firms”, Advances in Environmental Accounting & Management, Vol. 8, 9-34. DOI: https://doi.org/10.1108/S1479-359820190000008002
- Meiryani1, Susanto A. & Warganegara D., 2019, “The Issues Influencing of Environmental Accounting Information Systems: An Empirical Investigation of SMEs in Indonesia”, International Journal of Energy Economics and Policy, 9(1), 282-290.
- Moalla M., Salhi B. & Jarboui A., 2021, “An empirical investigation of factors influencing the environmental reporting quality: evidence from France”, Social Responsibility Journal, Vol. 17, No. 7, 966-984. DOI: https://doi.org/10.1108/SRJ-02-2020-0065
- Morrison L., Wilmshurst T. & Shimeld S., 2018, “Environmental Reporting Through an Ethical Looking Glass”, Journal of Business Ethics, 150, 903–918. DOI: https://doi.org/10.1007/s10551-016-3136-4
Nguyen L. & Tran M., 2019, “Disclosure levels of environmental accounting information and financial performance: The case of Vietnam”, Management Science Letters, 9, 557–570. DOI: https://doi.org/10.5267/j.msl.2019.1.007
- Nguyen M., Nguyen K. & Nguyen T., 2020, “Factors Affecting the Implementation of Environmental Accounting by Construction Companies Listed on the Ho Chi Minh Stock Exchange”, Journal of Asian Finance, Economics and Business, Vol. 7, No. 8, 269–280. DOI: https://doi.org/10.13106/jafeb.2020.vol7.no8.269
- Nguyen T., 2020, “Factors Influencing Environmental Accounting Information Disclosure of Listed Enterprises on Vietnamese Stock Markets”, Journal of Asian Finance, Economics and Business, Vol. 7, No. 11, 877–883. DOI: https://doi.org/10.13106/jafeb.2020.vol7.no11.877
- Nguyen T., 2020, “Studying Factors Affecting Environmental Accounting Implementation in Mining Enterprises in Vietnam”, Journal of Asian Finance, Economics and Business, Vol. 7, No. 5,131 – 144. DOI: https://doi.org/10.13106/jafeb.2020.vol7.no5.131
- Nicholls J., 2020, “Integrating financial, social and environmental accounting”, Sustainability Accounting, Management and Policy Journal, Vol. 11, No. 4, 745-769. DOI: https://doi.org/10.1108/SAMPJ-01-2019-0030
- Nurhayati R., Taylor G., Rusmin R., Tower G. & Chatterjee B., 2016, “Factors determining social and environmental reporting by Indian textile and apparel firms: a test of legitimacy theory”, Social Responsibility Journal, Vol. 12, No. 1, 167-189. DOI: https://doi.org/10.1108/SRJ-06-2013-0074
- Nuskiya M., Ekanayake A., Beddewela E. & Gerged A., 2021, “Determinants of corporate environmental disclosures in Sri Lanka: the role of corporate governance”, Journal of Accounting in Emerging Economies, Vol. 11, No. 3, 367-394. DOI: https://doi.org/10.1108/JAEE-02-2020-0028
- Olubukola O., Tafadzwa S., Obert S. & Kudzanai M., 2021, “Making Environmental Accounting Work: Case of the Zimbabwe Mining Industry”, Universal Journal of Accounting and Finance, 9(4), 722-734. - Omar M., Echchabi A., Ayedh A. & Al-Hajri S., 2021, “Determinants of Social and Environmental Reporting Practices Disclosure in Libyan Oil and Gas Industry: A Managerial Perspective”, International Journal of Energy Economics and Policy, 11(4), 504-510. DOI: https://doi.org/10.32479/ijeep.10821
- Osemene O., Adinnu P., Fagbemi T. & Olowookere J., 2021, “Corporate Governance and
Environmental Accounting Reporting in Selected Quoted African Companies”, Global Business Review, 1–24.
- Otchere F., Simpson S. & Kusi J., 2020, “The influence of environmental performance on environmental disclosures: An empirical study in Ghana”, Business Strategy and Development, 3, 98–111. DOI: https://doi.org/10.1002/bsd2.81
- Pedron A., Macagnan C., Simon D. & Vancin D., 2021, “Environmental disclosure effects on returns and market value”, Environment, Development and Sustainability,23, 4614–4633. DOI: https://doi.org/10.1007/s10668-020-00790-2
- Qi Y., Yao j. & Liu L., 2021, “Research on evolutionary game of environmental accounting information disclosure from the perspective of multi-agent”, Plos One, 16(8), 1-23. DOI: https://doi.org/10.1371/journal.pone.0256046
- Radhouane I., Nekhili M., Nagati H. & Pache G., 2018, “Customer-related performance and the relevance of environmental reporting”, Journal of Cleaner Production, 190, 315-329. DOI: https://doi.org/10.1016/j.jclepro.2018.04.149
- Radhouane I., Nekhili M., Nagati H. & Paché G., 2018, “The impact of corporate environmental reporting on customer-related performance and market value”, Management Decision, Vol. 56, No. 7, 1630-1659. - Radhouane I., Nekhili M., Nagati H. & Paché G., 2020, “Is voluntary external assurance relevant for the valuation of environmental reporting by firms in environmentally sensitive industries?”, Sustainability Accounting, Management and Policy Journal, Vol. 11, No. 1, 65-98. DOI: https://doi.org/10.1108/SAMPJ-06-2018-0158
- Rahim I., 2021, “Environmental disclosure and firm efficiency: a study of Pakistani firms”, Asian Review of Accounting, Vol. 29, No. 3, 269-290. DOI: https://doi.org/10.1108/ARA-05-2019-0100
Raiborn C., Butler J. & Massoud M., 2011, “Environmental reporting: Toward enhanced information quality”, Business Horizons, 54, 425-433. DOI: https://doi.org/10.1016/j.bushor.2011.04.004
- Rao K., Tilt C. & Lester L., 2012, “Corporate governance and environmental reporting: an Australian study”, Corporate Governance, Vol. 12, No. 2, 143-163. DOI: https://doi.org/10.1108/14720701211214052
- Rezaee Z., Alipour M., Faraji O., Ghanbari M. & Jamshidinavid B., 2021, “Environmental disclosure quality and risk: the moderating effect of corporate governance”, Sustainability Accounting, Management and Policy Journal, Vol. 12, No. 4, 733-766. DOI: https://doi.org/10.1108/SAMPJ-10-2018-0269
- Riyadh H., Al-Shmam M., Huang H., Gunawan B. & Alfaiza S., 2020, “The Analysis of Green Accounting Cost Impact on Corporations Financial Performance”, International Journal of Energy Economics and Policy, 10(6), 421-426. DOI: https://doi.org/10.32479/ijeep.9238
- Rounaghi M., 2019, “Economic analysis of using green accounting and environmental accounting to identify environmental costs and sustainability indicators”, International Journal of Ethics and Systems, Vol. 35, No. 4, 504-512. DOI: https://doi.org/10.1108/IJOES-03-2019-0056
- Said R., Omar N., & Abdullah W., 2013, “Empirical investigations on boards, business characteristics, human capital and environmental reporting”, Social Responsibility Journal, Vol. 9, No. 4, 534-553. DOI: https://doi.org/10.1108/SRJ-02-2012-0019
- Saleh M., Jawabreh O., Alsarayreh M. & Malkawi E., 2018, “Environmental accounting as perspective for hotels of Aqaba special economic zone authority (ASEZA)”, Problems and Perspectives in Management, Vol. 16, Iss. 4, 169-185. DOI: https://doi.org/10.21511/ppm.16(4).2018.15
- Shahab Y., Ntim C., Chen Y., Ullah F., Li H. & Ye Z., 2020, “Chief executive officer attributes, sustainable performance, environmental performance, and environmental reporting: New insights from upper echelons perspective”, Business Strategy and the environment, 29, 1–16. DOI: https://doi.org/10.1002/bse.2345
- Shwairef A., Amran A., Iranmanesh M. & Ahmad N., 2021, “The mediating efect of strategic posture on corporate governance and environmental reporting”, Review of Managerial Science, 15, 349–378. DOI: https://doi.org/10.1007/s11846-019-00343-6
- Susanto A. & Meiryani, 2019, “The impact of Environmental Accounting Information System Alignment on Firm Performance and Environmental Performance: A case of Small and Medium Enterprises s of Indonesia”, International Journal of Energy Economics and Policy, 9(2), 229-236. DOI: https://doi.org/10.32479/ijeep.8366
- Taqi M., Rusydiana A., Kustiningsih N. & Firmansyah I., 2021, “Environmental Accounting: A Scientometric using Biblioshiny”, International Journal of Energy Economics and Policy, 11(3), 369380. DOI: https://doi.org/10.32479/ijeep.10986
- Ulupui I., Murdayanti Y., Marini A., Purwohedi U., Mardi & Yantob H., 2020, “Green accounting, material flow cost accounting and environmental performance”, Accounting, 6, 743–752. DOI: https://doi.org/10.5267/j.ac.2020.6.009
- Usman B. & Aliyu U., 2021, “The effect of ownership structure on social and environmental reporting in Nigeria: the moderating role of intellectual capital disclosure”, Journal of Global Responsibility, Vol. 12, No. 2, 210-244. DOI: https://doi.org/10.1108/JGR-06-2019-0060
- Vallišová L., Černá M. & Hinke, J., 2018, “Implementation of sustainability aspects in the financial reporting system: an environmental accounting standard”, Accounting, Analysis and Audit, 173(910), 55-59. DOI: https://doi.org/10.21003/ea.V173-09
- Wahyuningrum I., Budihardjo M., Muhammad F., Djajadikerta H. & Trireksani T., 2020, “Do environmental and financial performances affect environmental disclosures? Evidence from listed companies in Indonesia”, Entrepreneurship and Sustainability Issues, Vol. 8, No. 2, 1047-1061. DOI: https://doi.org/10.9770/jesi.2020.8.2(63)
- Yaya R., Wibowo S., Ulfaturrahmah & Jalaludin D., 2018, “Environmental disclosure practices after mandatory disclosure policy in Indonesia”, Journal of Business and Retail Management Research, Vol. 12, Iss. 4, 88-100. DOI: https://doi.org/10.24052/JBRMR/V12IS04/ART-09
Yermolenko V., Gafurova O., Krasnova M. & Krasnova Y., 2020, “Legal Principles of Environmental Accounting as Means of Identifying Sustainable Development Indicators in Ukraine”, European Journal of Sustainable Development, 9 (2), 263-279. DOI: https://doi.org/10.14207/ejsd.2020.v9n2p263
