IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2020-06-55.html
   My bibliography  Save this article

The Analysis of Green Accounting Cost Impact on Corporations Financial Performance

Author

Listed:
  • Hosam Alden Riyadh

    (Universitas Muhammadiyah Yogyakarta, Indonesia,)

  • Maher A. Al-Shmam

    (University of Mosul, Iraq)

  • Henry Hongren Huang

    (National Central University, Taiwan,)

  • Barbara Gunawan

    (Universitas Muhammadiyah Yogyakarta, Indonesia,)

  • Salsabila Aisyah Alfaiza

    (University of Airlangga, Indonesia)

Abstract

This research aimed to analyze the Green Accounting (GA) impact on financial performance (FP). The research question pertaining to this research will answer empirical investigation and analysis in the top 100 multinationals corporations. The research seeks to answer the questions: Does green accounting cost have an impact on financial performance in the top 100 multinationals corporations? Thus, secondary data and multiple regression analysis were employed in this research, such as CSR reports, sustainability reports, and financial statements. The selected corporations were 100 largest multinational corporations in the year 2018. Then, the green accounting used a proxy of the environmental cost (EC), while financial performance employed a proxy of Return on Capital Employed (ROCE). The finding of autonomous Green Accounting costs on financial performance has a negative relationship.

Suggested Citation

  • Hosam Alden Riyadh & Maher A. Al-Shmam & Henry Hongren Huang & Barbara Gunawan & Salsabila Aisyah Alfaiza, 2020. "The Analysis of Green Accounting Cost Impact on Corporations Financial Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 421-426.
    • Handle: RePEc:eco:journ2:2020-06-55
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/9238/5475
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/9238/5475
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nassr Ahmad & Simon Gao, 2004. "Changes, problems and challenges of accounting education in Libya," Accounting Education, Taylor & Francis Journals, vol. 13(3), pages 365-390.
    2. de Beer, Patrick & Friend, Francois, 2006. "Environmental accounting: A management tool for enhancing corporate environmental and economic performance," Ecological Economics, Elsevier, vol. 58(3), pages 548-560, June.
    3. Nagib Salem Bayoud & Marie Kavanagh, 2012. "Corporate Social Responsibility Disclosure: Evidence From Libyan Managers," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(5), pages 73-83.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Omole Ilesanmi I. & Adewumi Ayodeji & Ochei Ngozi Fidelia, 2023. "Environmental Cost and Economic Performance of Nigerian Shipping Lines," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(3), pages 664-676, March.
    2. Susi Susilawati & Dian Arifiyanti & Samukri & Maria Suryaningsih & Arlis Dewi Kuraesin, 2024. "Green Accounting, CSR Disclosure, Firm Value, and Profitability Mediation," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 14-26.
    3. repec:bas:econst:y:2024:i:6:p: is not listed on IDEAS
    4. Che Fatimah Che Kasim & Haslinda Yusoff & Fadzlina Mohd Fahmi, 2024. "Systematic Literature Review (SLR) on the Roles of Accountants and Challenges Towards Sustainability Accounting and Reporting," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(11), pages 796-808, November.
    5. Agustine Dwianika & Edi Purwanto & Yohanes Totok Suyoto & Endang Pitaloka, 2024. "Bibliometrics Analysis of Green Accounting Research," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 349-358, January.
    6. Rajaa Ali Abed & Ahlam Hameed Kareem & Ali Khazaal Jabbar & Jasim Gshayyish zwaid & Hussein Falah Hasan, 2023. "The implementation of accounting information systems on the stock return and financial performance based on information technology (IT)," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 5(13 (125)), pages 57-64, October.
    7. Lisna Lisnawati & Titik Aryati & Juniati Gunawan, 2024. "Implementation of digital innovation on sustainability performance: the moderating role of green accounting in the industrial sector," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 1(13 (127)), pages 59-68, February.

    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. Hörisch, Jacob & Ortas, Eduardo & Schaltegger, Stefan & Álvarez, Igor, 2015. "Environmental effects of sustainability management tools: An empirical analysis of large companies," Ecological Economics, Elsevier, vol. 120(C), pages 241-249.
    2. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    3. Chen, Jingyuan & Calabrese, Raffaella & Cowling, Marc, 2024. "Does energy efficiency of UK SMEs affect their access to finance?," Energy Economics, Elsevier, vol. 129(C).
    4. Doorasamy Mishelle, 2015. "Staircase To Sustainable Development," Foundations of Management, Sciendo, vol. 7(1), pages 53-70, June.
    5. Madjid Abbaspour & Sanaz Toutounchian & Tooraj Dana & Zahra Abedi & Solmaz Toutounchian, 2018. "Environmental Parametric Cost Model in Oil and Gas EPC Contracts," Sustainability, MDPI, vol. 10(1), pages 1-13, January.
    6. Zhengjie Gao & Dayi He & Shuaifang Niu, 2021. "On What Could Chinese Mining Enterprises Achieve High-Level Environmental Performance?—Based on the fsQCA Method," IJERPH, MDPI, vol. 18(14), pages 1-16, July.
    7. Tsalis, Thomas A. & Nikolaou, Ioannis E. & Konstantakopoulou, Fotini & Zhang, Ying & Evangelinos, Konstantinos I., 2020. "Evaluating the corporate environmental profile by analyzing corporate social responsibility reports," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 63-75.
    8. Nazrul Islam & Syed Khaled Rahman, 2022. "Corporate Environmental Management Accounting Practicing and Reporting in Bangladesh," Papers 2208.12541, arXiv.org.
    9. Monica Fait & Dirk Meissner & Gian Luca Gregori & Filippo Monge & Valentina Cillo, 2022. "To act or to react? The role of responsiveness in corporate social performance disclosure in preventing plastic pollution in the travel and tourism sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2065-2082, November.
    10. Huo-Yen Tseng & Yung-Fu Huang & Chung-Jen Fu & Ming-Wei Weng, 2024. "Optimal Carbon Pricing and Carbon Footprint in a Two-Stage Production System Under Cap-and-Trade Regulation," Mathematics, MDPI, vol. 12(22), pages 1-21, November.
    11. Wen-Hsien Tsai & Shi-Yin Jhong, 2018. "Carbon Emissions Cost Analysis with Activity-Based Costing," Sustainability, MDPI, vol. 10(8), pages 1-26, August.
    12. Mohamed Zakari & Karim Menacere, 2012. "The challenges of the quality of audit evidence in Libya," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 1(1), pages 3-24.
    13. Golyagina, Alena, 2020. "Competing logics in university accounting education in post-revolutionary Russia," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 69(C).
    14. Mohammed Mispah Said Omar & Abdelghani Echchabi & Abdullah Mohammed Ayedh & Salim Al-Hajri, 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, Econjournals, vol. 11(4), pages 504-510.
    15. Nandini E. S & Sudharani R & Suresh N, 2022. "A Study on Impact of Environmental Accounting on Profitability of Companies listed in Bombay Stock Exchange," Papers 2207.00716, arXiv.org.
    16. Muhamad Taqi & Aam Slamet Rusydiana & Nanik Kustiningsih & Irman Firmansyah, 2021. "Environmental Accounting: A Scientometric using Biblioshiny," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 369-380.
    17. Ioannis E. Nikolaou & Konstantinos I. Evangelinos, 2010. "Classifying current social responsibility accounting methods for assisting a dialogue between business and society," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 6(4), pages 562-580, October.
    18. Soiloor Nandini Arunima, 2020. "An Empirical Scrutiny of Environmental Accounting Reporting (EAR) and Vision 2021: A way of Environmental Protection," International Journal of Science and Business, IJSAB International, vol. 4(9), pages 113-124.
    19. Neungruthai Nickie Petcharat & Joseph M. Mula, 2012. "Towards a conceptual design for environmental and social cost identification and measurement system," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 10(1), pages 34-54, June.
    20. Candy Lim Chiu & Jingxin Zhang & Mingrui Li & Siyu Wei & Shengnan Xu & Xiaotong Chai, 2020. "A study of environmental disclosures practices in Chinese energy industry," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 5(1), pages 1-21, December.

    More about this item

    Keywords

    Green Accounting; Environmental Cost; and Financial Performance;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition

    Statistics

    Access and download statistics

    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:eco:journ2:2020-06-55. 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: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    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.