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Author
Nyahuna Thomas (University of KwaZulu-Natal, Durban, South Africa), Doorasamy Mishelle (University of Kwa-Zulu Natal, Durban, South Africa), Baldavoo Kiran (University of KwaZulu-Natal, Durban, South Africa)
Title
Does air Pollution Motivate Organisations to Adopt Environmental Management Accounting Practices? : Evidence from South Africa
Source
Economics, Management and Sustainability, 2024, vol. 9, nr 1, s. 53-60, tab., bibliogr. 31 poz.
Keyword
Zarządzanie środowiskiem, Rachunkowość zarządcza, Zanieczyszczenie powietrza
Environmental management, Management accounting, Air pollution
Note
JEL Classification: Q56, M415
summ.
Company
Giełda Papierów Wartościowych w Johannesburgu
Johannesburg Stock Exchange
Country
Republika Południowej Afryki (RPA)
Republic of South Africa
Abstract
This paper identifies the extent of air pollution in motivating companies to implement environmental management accounting (EMA) practices in 67 mining and cement companies listed on the Johannesburg Stock Exchange (JSE), South Africa, from 2012 to 2021. Pooled ordinary least squares regression is applied to analyse the data. EMA is proxied by environmental training, environmental audits and energy efficiency, while air pollution is measured based on the air quality index (AQI). The results show that air pollution is essential for companies to adopt EMA practices. This means that when air quality declines within a company's locality, a company proactively adopts EMA practices. This suggests that air pollution is a key basis of companies' adoption of EMA, as predicted by the legitimacy theory. The study includes three control variables: size, return on assets (ROA) and number of years listed on JSE. Two control variables, namely Size and ROA, portray a positive and significant effect on adopting EMA from air pollution. This portrays that a financially stable company tends to submit to air pollution and use EMA to counter the pollution. In contrast, as the number of years increases for companies listed on JSE, EMA will likely be adopted less to reduce air pollution. (original abstract)
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Bibliography
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ISSN
2520-6303
Language
eng
URI / DOI
http://dx.doi.org/10.14254/jems.2024.9-1.4
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