Academicians' Perceptions on Environmental Accounting and Reporting towards Firm Value Creation

Abstract

Traditional accounting assumptions have been seriously challenged by growing environmental awareness, stakeholder participation, and academicians' attention to how humans influence the environment. As a result, environmental reporting and accounting (EAR) has emerged as a proactive strategy for companies to address environmental impacts. Therefore, this study aims to identify the factors that influence academicians' perceptions about EAR in relation to organizational corporate performance. Data was collected using self-administered, structured, closed-ended questions. Purposive sampling was used to select respondents. We tested the hypothesis by analyzing the responses of 400 participants. The study used Smart PLS version v. 4.1.0.2. Findings of the study revealed that changes in EAR (CEAR), dimensions of EAR (DEAR), and utilities of EAR (UEAR) significantly and positively influenced academicians' perceptions of EAR. Moreover, academicians’ perceptions of EAR are likely to have a significant and positive impact on organizational goodwill and reputation (OGR), organizational financial performance (OFP), and organizational environmental sustainability (OES). Academicians’ strongly argued that companies should incorporate EAR practices to strengthen corporate environmental governance, accountability, and transparency, even though EAR are not widely practiced in Bangladesh. Furthermore, without active participation from academicians, EAR in Bangladesh is unlikely to effectively address EAR issues.