Publication: Environmental Accounting Costs And Financial Performance Of Cement Manufacturing Firms In Coast Region, Kenya
| dc.contributor.author | Mwarabu, Salim Hassan | |
| dc.contributor.author | Onsiro, Martin | |
| dc.date.accessioned | 2024-10-17T06:27:29Z | |
| dc.date.available | 2024-10-17T06:27:29Z | |
| dc.date.issued | 2024 | |
| dc.description.abstract | Within the industrial landscape, the environmental impact of manufacturing operations has raised concerns about the associated costs for environmental remediation. This study delves into the interaction between these environmental accounting expenses and the financial performance of Cement manufacturing firms in Coast region, Kenya, moderating effect of corporate governance over the 2018-2022 periods. The research objectives were as follows: To analyze the influence of environmental remediation costs on financial performance, to evaluate the correlation between social activity costs and financial performance, to assess the effect of restoration cost on financial performance, to investigate the effect of upstream/downstream costs on the financial performance of Cement manufacturing firms in Coast region, Kenya moderated by corporate governance. The study was drawn from four foundational theories: Stakeholders Theory, Legitimacy Theory, Positive Accounting Theory, and Luhmann's Theory of Ecological Communication. These theories provided lenses to examine the intricate relationship between environmental costs and financial outcomes. Methodologically, a descriptive research design was employed, combining quantitative and qualitative approaches. The participant pool comprised 56 respondents, including Managers, Accountants, and Auditors. Data collection involved structured questionnaires for primary data and annual reports/accounts for secondary data from Cement Manufacturing Company Ltd in Coast Region. Data analysis encompassed descriptive statistics such as mean and standard deviation as well as inferential statistics including regression and correlation analysis using the Statistical Package for the Social Sciences (SPSS). Findings of the study indicated th,at environmental remediation cost (r=0.235, p=0.000), social activities cost (r=0.248, p=0.092) and environmental remedial cost (β = 0.538, p- value=0.000) all have positive and substantial link between environmental costs and the financial performance of coastal cement producing enterprises. It confirmed that corporate governance acts as a moderator P-value of 0.003 in the relationship between the predictor variables and outcome variables. Therefore,the inclusion of the indicated environmental cost clearly benefits the company by enhancing its image and boosting its financial performance in the eyes of its stakeholders. The study also concluded that there was a significant requirement to bear the expenses of environmental accounting for environmental remediation and restoration. The study suggests that organizations should incorporate the aforementioned environmental accounting costs into their annual reports as part of their corporate governance standards, especially considering the global adoption of green initiatives. | |
| dc.identifier.issn | 2321-5933 | |
| dc.identifier.uri | https://erepository.mku.ac.ke/handle/123456789/6991 | |
| dc.language.iso | en | |
| dc.publisher | Journal of Economics and Finance | |
| dc.subject | Environmental Remedial costs | |
| dc.subject | Environmental Restoration Cost | |
| dc.subject | Social Activity Costs Financial Performance | |
| dc.title | Environmental Accounting Costs And Financial Performance Of Cement Manufacturing Firms In Coast Region, Kenya | |
| dc.type | Article | |
| dspace.entity.type | Publication |