Environmental management accounting and financial competitive advantage affecting corporate sustainability of Thai companies
Anchalee Nuleg, Dararat Phoprachak, Kusuma Dampitakse & Oranoodj Ruepitiviriya
Abstract
This study examined environmental management accounting (EMA) practices and financial competitive advantages (FCA) affecting corporate sustainability of a company (CSC) certified by the ISO 14001 in Thailand. A set of questionnaires was created to collect data from accounting managements of 272 companies. Multiple linear regressions were employed for data analysis. The results revealed that EMA practices and FCA had a positive influence on the CSC. The companies focused on EMA create cost management effectiveness and build strengths of higher returns. Thus stakeholders were able to recognize the information from the operational performance reports when making investment decisions. In addition, EMA also had a positive influence on FCA. Sample companies presented accounting practices in the annual reports to keep stakeholders informed about return on investment and good performance. Moreover, EMA also had a positive influence on CSC through their FCA when companies focus on accounting practices for environmental management. By having EMA and FCA, companies are able to create financial competitive advantages to attract investors and allow stakeholders to recognize the intention of the companies in being environment friendly. As a result, a companies are seen as sustainable by the stakeholders.
Keywords
environmental management accounting (EMA), corporate sustainability of a company (CSC), financial competitive advantage (FCA), stakeholder, operational performance, return on investment
Author information & Contribution
Anchalee Nuleg. Corresponding author. Candidate for Master of Business Administration, Faculty of Business Administration and Information Technology, Rajamangala University of Technology Suvarnabhumi, Thailand
Dararat Phoprachak. Lecturer, Faculty of Business Administration and Information Technology, Rajamangala University of Technology Thanyaburi, Thailand
Kusuma Dampitakse. Lecturer, Faculty of Business Administration, Rajamangala University of Technology Thanyaburi, Thailand
Oranoodj Ruepitiviriya. Lecturer, Faculty of Business Administration and Information Technology, Rajamangala University of Technology Thanyaburi, Thailand
Disclosure statement
No potential conflict of interest was reported by the author(s).
Funding
This work was not supported by any funding.
Institutional Review Board Statement
AI Declaration
Notes
Acknowledgement
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Cite this article:
Anchalee Nuleg, Dararat Phoprachak, Kusuma Dampitakse & Oranoodj Ruepitiviriya (2021). Environmental management accounting and financial competitive advantage affecting corporate sustainability of Thai companies. International Journal of Accounting, Finance and Education, 2(1), 20-38. https://doi.org/10.53378/345959
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