Examining the relationship between environmental management accounting practices and return on equity in the South African chemical industry
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Author(s)Tracy CornellissenLink to ORCID Index: https://orcid.org/0009-0004-3731-9741
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Silas MukwaramiLink to ORCID Index: https://orcid.org/0000-0002-5812-4722
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DOIhttp://dx.doi.org/10.21511/ee.15(1).2024.14
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Article InfoVolume 15 2024, Issue #1, pp. 190-202
- 128 Views
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29 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Environmental management accounting practices (EMAPs) have become pervasive, and continued efforts to ensure universal implementation across various sectors often represent financial implications for organizations. Despite many studies that examined the relationship between EMAPs and financial performance, the debate is still inconclusive. Therefore, the study paves the way for chemical firms to explore the effectiveness of EMAPs’ implementation for both financial and environmental gain. The study used purposive sampling to gather quantitative secondary data from annual integrated reports of chemical firms to examine the relationship between EMAPs and financial performance in the South African chemical industries during 2016–2022. Following the results from the regression estimations, two of the EMAPs – water and energy usage – have had a positive relationship with financial performance, with the latter being highly significant. Contradictorily, carbon emissions and environmental expenditure adversely and insignificantly influenced financial performance. The results suggest that chemical firms have in place ineffective carbon management strategies that fail to generate sustainable returns. Overall, the results acknowledge the efforts of chemical industries in making substantial contributions to enhance environmental performance and encourage environmentalists and policymakers to reconfigure environmental policies for improved environmental and financial performance. Further research on environmental management accounting (EMA) barriers in chemical industries is imperative to achieving environmental sustainability.
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JEL Classification (Paper profile tab)M41, Q01, Q56
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References40
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Tables7
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Figures0
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- Table 1. Descriptive statistics
- Table 2. Study variables’ correlation matrix
- Table 3. Heteroscedasticity test
- Table 4. Normality test
- Table 5. Multicollinearity test
- Table 6. Relationship between EMAPs and financial performance
- Table 7. Summary of OLS and FGLS results
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Industrial development in Saudi Arabia: disparity in growth and development
Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 23-35 Views: 2701 Downloads: 926 TO CITE АНОТАЦІЯIndustrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.
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Why banks should consider ESG risk factors in bank lending?
Sarwar Uddin Ahmed ,
Samiul Parvez Ahmed ,
Ikramul Hasan
doi: http://dx.doi.org/10.21511/bbs.13(3).2018.07
Banks and Bank Systems Volume 13, 2018 Issue #3 pp. 71-80 Views: 2620 Downloads: 1058 TO CITE АНОТАЦІЯWhy banks should be concerned about incorporating environmental, social and governance (ESG) criteria in the lending process? What is the motivation? This study aims to find the motives for considering environmental, social and governance (ESG) criteria in bank lending process. A primary survey has been conducted to know the current status and motivation for incorporating ESG factors in investment decisions. Sample comprised 30 private commercial banks (PCBs) operating in Bangladesh. Data collected were analyzed with graphs, descriptive statistics, and regression analysis. Findings of the study indicate that banks are mostly considering basic environmental, social and governance factors set by regulators qualitatively. They are lagging behind in considering the advanced ESG criteria needed for sustainable and efficient credit risk management. Based on motivation for incorporating ESG factors, it was found that banks pioneering in incorporating ESG factors in lending decisions are compensated through better financial performance. Findings of the study are expected to encourage practitioners and policy-makers to take more pragmatic steps to incorporate ESG risk factors quantitatively in lending decision-making process.
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Integrated reporting and financial performance of South African listed banks
Reon Matemane ,
Rozane Wentzel
doi: http://dx.doi.org/10.21511/bbs.14(2).2019.11
Banks and Bank Systems Volume 14, 2019 Issue #2 pp. 128-139 Views: 2615 Downloads: 516 TO CITE АНОТАЦІЯThe recent development of integrated reporting intends to address the limitations associated with corporate reporting practices. This paper aims to examine whether a statistically significant relationship exists between integrated reporting quality and financial performance. Secondary data was used, namely the integrated reports and annual financial statements of South African banks listed on the Johannesburg Stock Exchange (JSE) for 2010–2014. For the period 2005–2009, only the financial statements were used, since integrated reporting was not yet mandatory. The research design was longitudinal and it combined qualitative and quantitative methods. Descriptive statistics and Feasible Generalized Least Square (FGLS) were used to explore the relationships between financial performance and integrated reporting quality. The results indicate that there is a positive relationship between integrated reporting quality (IRQ) and earnings per share (EPS). However, there is no significant relationship between IRQ and Tobin’s q (Q-Ratio), IRQ and return on equity (ROE), IRQ and return on assets (ROA) as well as IRQ and economic value added (EVA). Moreover, there are no significant differences on the financial performance of the listed banks before and after the introduction of integrated reporting.
