IDEAS home Printed from https://ideas.repec.org/a/dug/journl/y2017i2p179-194.html
   My bibliography  Save this article

Determining the Business Case for Environmental Management Accounting (EMA) Practices among Listed Firms in Nigeria: The Stewardship Approach

Author

Listed:
  • Oluwamayowa Olalekan Iredele

    (University of Lagos)

  • Omowunmi Jumoke Ogunleye

    (University of Lagos)

  • Okwy Peter Okpala

    (University of Lagos)

Abstract

This study investigated the business case for environmental management accounting (EMA) practices in financial terms among listed firms in Nigeria in line with stewardship theory. The population of the study comprised of all 170 non-financial listed firms in Nigeria as at 31st December, 2015 but a sample of 22 firms that were purposively selected based on the impacts of their activities on the environment. Primary data on EMA practices were obtained through the aid of a structured questionnaire as well as secondary data on financial variables such as Return on Equity (ROE), size, leverage and growth through content analysis of annual reports. Descriptive statistics such as mean score, frequencies, and inferential statistics (regression analysis) were used to analyse the data. Findings showed that the level of EMA practice in Nigeria is low and has no significant effect on the financial performance of sampled firms. This implies that there is no business case for EMA practice in Nigeria at the moment. The study therefore recommends that relevant stakeholders enforce environmental regulations so as to promote widespread adoption of EMA practices such that, the possible numerous benefits there from can be enjoyed by listed firms in Nigeria.

Suggested Citation

  • Oluwamayowa Olalekan Iredele & Omowunmi Jumoke Ogunleye & Okwy Peter Okpala, 2017. "Determining the Business Case for Environmental Management Accounting (EMA) Practices among Listed Firms in Nigeria: The Stewardship Approach," EuroEconomica, Danubius University of Galati, issue 2(36), pages 179-194, November.
    • Handle: RePEc:dug:journl:y:2017:i:2:p:179-194
    as

    Download full text from publisher

    File URL: http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/4193/4287
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cho, Charles H. & Patten, Dennis M., 2007. "The role of environmental disclosures as tools of legitimacy: A research note," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 639-647.
    2. Victor Chiedu Oba & Musa Inuwa Fodio & Benedict Soje, 2012. "The Value Relevance of Environmental Responsibility Information Disclosure in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 8(6), pages 99-112, December.
    3. Monir Zaman Mir & Abu Shiraz Rahaman, 2011. "In pursuit of environmental excellence," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 24(7), pages 848-878, September.
    4. Shaker A. Zahra & James C. Hayton & Donald O. Neubaum & Clay Dibrell & Justin Craig, 2008. "Culture of Family Commitment and Strategic Flexibility: The Moderating Effect of Stewardship," Entrepreneurship Theory and Practice, , vol. 32(6), pages 1035-1054, November.
    5. Eddleston, Kimberly A. & Kellermanns, Franz W., 2007. "Destructive and productive family relationships: A stewardship theory perspective," Journal of Business Venturing, Elsevier, vol. 22(4), pages 545-565, July.
    6. Dayana Jalaludin & Maliah Sulaiman & Nik Nazli Nik Ahmad, 2011. "Understanding environmental management accounting (EMA) adoption: a new institutional sociology perspective," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 7(4), pages 540-557, October.
    7. Lex Donaldson & James H. Davis, 1991. "Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns," Australian Journal of Management, Australian School of Business, vol. 16(1), pages 49-64, June.
    8. Hayam Wahba, 2008. "Does the market value corporate environmental responsibility? An empirical examination," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(2), pages 89-99, March.
    9. Tracy Artiach & Darren Lee & David Nelson & Julie Walker, 2010. "The determinants of corporate sustainability performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(1), pages 31-51, March.
    10. Henry L. Tosi & Amy L. Brownlee & Paula Silva & Jeffrey P. Katz, 2003. "An Empirical Exploration of Decision‐making Under Agency Controls and Stewardship Structure," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 2053-2071, December.
    11. Joe Duke II & Kechi Kankpang, 2013. "Implications of Corporate Social Responsibility for the Performance of Nigerian Firms," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 3(5), pages 1-5.
    12. Yuriko Nakao & Akihiro Amano & Kanichiro Matsumura & Kiminori Genba & Makiko Nakano, 2007. "Relationship between environmental performance and financial performance: an empirical analysis of japanese corporations," Business Strategy and the Environment, Wiley Blackwell, vol. 16(2), pages 106-118, February.
    13. Freedman, Martin & Jaggi, Bikki, 2005. "Global warming, commitment to the Kyoto protocol, and accounting disclosures by the largest global public firms from polluting industries," The International Journal of Accounting, Elsevier, vol. 40(3), pages 215-232.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qian, Wei & Schaltegger, Stefan, 2017. "Revisiting carbon disclosure and performance: Legitimacy and management views," The British Accounting Review, Elsevier, vol. 49(4), pages 365-379.
    2. Sophie Bacq & Kimberly A. Eddleston, 2018. "A Resource-Based View of Social Entrepreneurship: How Stewardship Culture Benefits Scale of Social Impact," Journal of Business Ethics, Springer, vol. 152(3), pages 589-611, October.
    3. Okwy Peter Okpala & Oluwamayowa Olalekan Iredele, 2018. "Corporate Social And Environmental Disclosures And Market Value Of Listed Firms In Nigeria," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 7(3), pages 9-28.
    4. Nazim Hussain, 2015. "Impact of Sustainability Performance on Financial Performance: An Empirical Study of Global Fortune (N100) Firms," Working Papers 1, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    5. Astrachan, Joseph H., 2010. "Strategy in family business: Toward a multidimensional research agenda," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 6-14, March.
    6. Kimberly A. Eddleston & Franz W. Kellermanns & Thomas M. Zellweger, 2012. "Exploring the Entrepreneurial Behavior of Family Firms: Does the Stewardship Perspective Explain Differences?," Entrepreneurship Theory and Practice, , vol. 36(2), pages 347-367, March.
    7. repec:hum:wpaper:sfb649dp2007-059 is not listed on IDEAS
    8. Al-Shaer, Habiba & Uyar, Ali & Kuzey, Cemil & Karaman, Abdullah S., 2023. "Do shareholders punish or reward excessive CSR engagement? Moderating effect of cash flow and firm growth," International Review of Financial Analysis, Elsevier, vol. 88(C).
    9. Helfaya, Akrum & Aboud, Ahmed & Amin, Essam, 2023. "An examination of corporate environmental goals disclosure, sustainability performance and firm value – An Egyptian evidence," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 52(C).
    10. Kentaro Azuma & Akira Higashida, 2024. "Climate change disclosure and evolving institutional investor salience: Roles of the Principles for Responsible Investment," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3669-3686, May.
    11. Segaro, Ethiopia L. & Larimo, Jorma & Jones, Marian V., 2014. "Internationalisation of family small and medium sized enterprises: The role of stewardship orientation, family commitment culture and top management team," International Business Review, Elsevier, vol. 23(2), pages 381-395.
    12. Dwi Ratmono & Darsono Darsono & Selviana Selviana, 2021. "Effect of Carbon Performance, Company Characteristics and Environmental Performance on Carbon Emission Disclosure: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 101-109.
    13. Antonio J. Mateo-Márquez & José M. González-González & Constancio Zamora-Ramírez, 2021. "Components of Countries’ Regulative Dimensions and Voluntary Carbon Disclosures," Sustainability, MDPI, vol. 13(4), pages 1-22, February.
    14. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    15. Guidice, Rebecca M. & Mero, Neal P. & Greene, Juanne V., 2013. "Perceptions of accountability in family business: Using accountability theory to understand differences between family and nonfamily executives," Journal of Family Business Strategy, Elsevier, vol. 4(4), pages 233-244.
    16. Concepción Garcés-Ayerbe & Pilar Rivera-Torres & Josefina L. Murillo-Luna & Cristina Suárez-Gálvez, 2022. "Does it pay more to be green in family firms than in non-family firms?," Review of Managerial Science, Springer, vol. 16(5), pages 1365-1386, July.
    17. Marika Arena & Giovanni Azzone & Sara Ratti & Valeria Maria Urbano & Giovanni Vecchio, 2023. "Sustainable development goals and corporate reporting: An empirical investigation of the oil and gas industry," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 12-25, February.
    18. Chen, Hongtao & Fang, Xiumei & Xiang, Erwei & Ji, Xiaojia & An, Maolin, 2023. "Do online media and investor attention affect corporate environmental information disclosure？Evidence from Chinese listed companies," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 1022-1040.
    19. Pittino, Daniel & Visintin, Francesca & Lenger, Tamara & Sternad, Dietmar, 2016. "Are high performance work practices really necessary in family SMEs? An analysis of the impact on employee retention," Journal of Family Business Strategy, Elsevier, vol. 7(2), pages 75-89.
    20. Despina Galani & Efthymios Gravas & Antonios Stavropoulos, 2012. "Company Characteristics and Environmental Policy," Business Strategy and the Environment, Wiley Blackwell, vol. 21(4), pages 236-247, May.
    21. Pieper, Torsten M., 2010. "Non solus: Toward a psychology of family business," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 26-39, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:journl:y:2017:i:2:p:179-194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Nuta (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.