The impact of environmental management accounting on environmental and financial performance: empirical evidence from Bangladesh
Journal of Accounting & Organizational Change
ISSN: 1832-5912
Article publication date: 15 July 2022
Issue publication date: 25 May 2023
Abstract
Purpose
This study aims to investigate the impact of environmental management accounting (EMA) on manufacturing companies’ environmental and financial performance in Bangladesh. Thus, this research recognizes essential factors such as EMA, environmental performance (EP), financial performance (FP), environmental information systems (EIS), knowledge management (KM), green innovation and energy efficiency (EE).
Design/methodology/approach
This research uses a quantitative approach and uses 323 responses from the manufacturing firms. This research tests the study model through the “Partial Least Square-Structural Equation Modeling” (PLS-SEM) technique using Smart PLS v3.3 software. This research uses AMOS v24 and 40% sample consideration to check the robustness. The study passes various model fit measures, i.e. reliability, validity, factor analysis and goodness of fit.
Findings
The research finds that EMA is positively and significantly associated with EP and FP. The study also finds a substantial relationship between recognized factors with EMA and EP. This research connects the stakeholder theory and institutional theory to the EMA model and shows the pressures from stakeholders and institutions reassuring the manufacturing firms to implement EMA. This research evidences that EMA enhances EP and FP.
Originality/value
The policymakers, regulators and government can consider these findings to formulate policy regarding companies’ EP and FP. Particularly, company executives can focus on KM, EIS, green innovation and EE factors for EP and FP.
Keywords
Acknowledgements
The authors would like to acknowledge the support of the manufacturing companies’ employees and officers, who devoted time to filling and returning questionnaires sent to them. We are also grateful to the data collectors. We are thankful to the colleagues and reviewers who assist us to amplify the quality of the paper.
Funding: This research receives no external funding for publication but receives research grants from Comilla University to conduct the study.
Availability of data and materials: Data and materials are available upon reasonable request through the corresponding author.
Competing interests: This research declares no competing interests.
Authors’ contributions: BCD conducted, conceptualized and supervised the research. BCD performed statistical analysis, reviewed a portion of literature, developed conceptual framework and wrote research contribution. MMR collected data, performed statistical analysis, reviewed portion of literature, performed referencing and prepared the drafted report. MSR made revisions as per reviewers’ comments. As the corresponding author, MMR bears full responsibility for the submission, and confirms that all authors listed on the title page have contributed significantly to work. Finally, all authors read and approved the final manuscript.
Citation
Deb, B.C., Rahman, M.M. and Rahman, M.S. (2023), "The impact of environmental management accounting on environmental and financial performance: empirical evidence from Bangladesh", Journal of Accounting & Organizational Change, Vol. 19 No. 3, pp. 420-446. https://doi.org/10.1108/JAOC-11-2021-0157
Publisher
:Emerald Publishing Limited
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