The UN Sustainable Development Goal 12—“Responsible consumption and production” targets efficient use of resources and the lessening of waste and pollution. Organisations strive to measure and manage their impact on the environment in addition to identifying openings for resource efficiency and waste reduction. This study aimed at evaluating the effect of Environmental Cost Accounting on the return on assets of manufacturing firms in the Douala Industrial Zone. Data was collected through a descriptive survey and a questionnaire using a sample size of 128. The study adopted a descriptive statistic and ordered logit model to do the data analysis. The results showed a positive relationship between employee health and safety compliance cost, and pollution prevention cost. It therefore recommended the application of environmental prevention policies, in order to reduce resource spending on restoration and environmentally friendly product production.
References
[1]
Akinleye, M. J., & Olaoye, C. O. (2021). Community Development Cost and Financial Performance of Oil and Gas Firms in Nigeria. KampalaInternationalUniversityInterdisciplinaryJournalofHumanitiesandSocialSciences,2, 43-56. https://doi.org/10.59568/kijhus-2021-2-3-04
[2]
Arumona, J., Lambe, I., & Ogunmakinde, I. (2020). Effect of Environmental Disclosure on Financial Performance of Quoted Oil and Gas Companies in Nigeria. BinghamUniversityJournalofAccountingandBusiness (BUJAB), 1-286. https://binghamuni.edu.ng/library/images/pdf/BUJAB6i.pdf
[3]
Birkin, F. (1996). Environmental Management Accounting. Management Accounting, 74, 34-37.
[4]
Bitondo, D. (2000). Environmental Assessment in Cameroon: State of the Art. Impact AssessmentandProjectAppraisal,18, 33-42. https://doi.org/10.3152/147154600781767592
[5]
Bucior, B., & Irwanda, R. D. (2021). Environmental Cost Accounting in a Small Enterprise: A Case Study. IBIMA Business Review.
[6]
Burritt, L., Hahn, T., & Schaltegger, S. (2001). Towards a Comprehensive Framework for Environmental Management Accounting—Links between Business Actors and Environmental Management Accounting Tools. Australian Accounting Review, 12, 39-50. https://doi.org/10.1111/j.1835-2561.2002.tb00202.x
[7]
Carroll, A. B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. BusinessHorizons,34, 39-48. https://doi.org/10.1016/0007-6813(91)90005-g
[8]
Chathurangani, H. B. P., & Madhusanka, K. J. S. (2019). Environmental Management Accounting (EMA) Adoption Level among Listed Manufacturing Companies in Sri Lanka: Institutional Theory Perspective. ResearchinSocialSciences,2, 1-12. https://doi.org/10.53935/2641-5305.v2i1.11
[9]
Chinedu, N. G., Udama, U. D., & Ali, O. R. (2019). Impact of Environmental Accounting Disclosure on Financial Performance in Cement Companies in Nigeria. IDOSRJournalofArtsandHumanities,4, 1-14.
[10]
Chukwuma, R. N. (2015). Influenceof Environmental Costs onthe Performance of Manufacturing Companies inNigeria. Ph.D. Thesis, University of Nigeria.
[11]
Cna Acti, I. M. S. K., Lyndon, M. E., & Binglilar, P. F. (2013). The Impact of Environmental Cost on Corporate Performance: A Study of Oil Companies in Niger Delta States of Nigeria. JournalofBusiness&Management,2, 1-10. https://doi.org/10.12735/jbm.v2i2p01
[12]
Decker, J. L., & Jalbert, T. (2014). Financial Performance as It Relates to Pollution Control: An Empirical Analysis. International Business & Economics Research Journal (IBER), 3, 67-80. https://doi.org/10.19030/iber.v3i1.3655
[13]
Dedi, S., Asyraf, A., Puspa, L. G., & Zainal, A. (2020). Effect of Occupational Safety and Health on Performance: An Empirical Investigation. International Journal of Islamic StudiesandSocialSciences, 1, 539-556.
[14]
DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48, 147-160. https://doi.org/10.2307/2095101
[15]
Ferreira, A., Moulang, C., & Hendro, B. (2010). Environmental Management Accounting and Innovation: An Exploratory Analysis. Accounting,Auditing&AccountabilityJournal,23, 920-948. https://doi.org/10.1108/09513571011080180
[16]
Finance Division (2014). BangladeshClimateFiscalFramework. Ministry of Finance, Government of the People’s Republic of Bangladesh.
[17]
Freeman, R. (1984). StrategicManagement:AStakeholderApproach. Pitman.
[18]
Freeman, R. E., Wicks, A. C., & Parmar, B. (2004). Stakeholder Theory and “The Corporate Objective Revisited”. OrganizationScience,15, 364-369. https://doi.org/10.1287/orsc.1040.0066
[19]
Fulk, A., & Fischbacher, U. (2000). A Theory of Reciprocity, Working Paper Series. Institute for Empirical Research in Economics, University of Zurich.
[20]
Gloria, O., Sunday C., & Chinedu, F. (2013). Environmental Cost Accounting and Cost Allocation (a Study of Selected Manufacturing Companies in Nigeria). European Journal of Business and Management, 5, 68-75.
[21]
Hanafi, M. M. (2010). ManajemenKeuangan(Pertama). BPFE
[22]
Hanim Mohamad Zailani, S., Eltayeb, T. K., Hsu, C., & Choon Tan, K. (2012). The Impact of External Institutional Drivers and Internal Strategy on Environmental Performance. InternationalJournalofOperations&ProductionManagement,32, 721-745. https://doi.org/10.1108/01443571211230943
[23]
Hery (2015). AnalisisLaporanKeuangan. Center for Academic Publishing Services.
[24]
Horne, J. C., & Wachowicz, J. M. (2005). FundamentalsofFinancialManagement. South-Western College Pub.
[25]
Hussain, M. D., Halim, M. S., & Bhuiyan, A. B. (2016). Environmental Accounting and Sustainable Development. International Journal of Business and Technopreneurship, 6, 335-350.
[26]
ICAN (2014). Management,GovernanceandEthics. Emile Wolf International.
[27]
Ilelaboye, C. S., & Alade, M. E. (2022). Environmental Accounting and Financial Performance of Listed Family-Owned Companies in Nigeria. InternationalReviewofBusinessandEconomics,6, 71-82. https://doi.org/10.56902/irbe.2022.6.1.3
[28]
Jamil, C. Z. M., Mohamed, R., Muhammad, F., & Ali, A. (2015). Environmental Management Accounting Practices in Small Medium Manufacturing Firms. Procedia—SocialandBehavioralSciences,172, 619-626. https://doi.org/10.1016/j.sbspro.2015.01.411
[29]
Khalid, F. M., Lord, A. P., & Dixon, D. K. (2012). Environmental Management Accounting Implementation in Environmentally Sensitive Industries in Malaysia. In 6th NZ Management Accounting Conference. ResearchGate.
[30]
Le, T. T., Nguyen, T. M. A., & Phan, T. T. H. (2019). Environmental Management Accounting and Performance Efficiency in the Vietnamese Construction Material Industry—A Managerial Implication for Sustainable Development. Sustainability,11, Article 5152. https://doi.org/10.3390/su11195152
[31]
Letmathe, P., & Doost, R. K. (2000). Environmental Cost Accounting and Auditing. ManagerialAuditingJournal,15, 424-431. https://doi.org/10.1108/02686900010354709
[32]
Lu, I. R. (1999). Probit Analysis for Ordinal Response Variables with Continuous Covariates. Journal of Educational and Behavioral Statistics, 24, 398-418.
[33]
McKelvey, R. D., & Zavoina, W. (1975). A Statistical Model for the Analysis of Ordinal Level Dependent Variables. The Journal of Mathematical Sociology, 4, 103-120. https://doi.org/10.1080/0022250x.1975.9989847
[34]
Mukah, S. T. (2021). Environmental Cost Accounting Implications on Timber Company Productivity in Cameroon. OpenJournalofAccounting,10, 77-92. https://doi.org/10.4236/ojacct.2021.103007
[35]
Nwaimo, S. C. (2020). Effect of Environmental Cost on Performances of Quoted Firms in Sub-Saharan Africa. European Journal of Accounting, Auditing and Finance Research, 8, 97-120.
[36]
Nwanwu, P. O. (2022). Environmental Management Cost and Financial Performance of Oil and Gas Companies in Nigeria. International Journal of Innovative Finance and EconomicsResearch,10, 119-134 http://www.seahipaj.org/
[37]
Odesa, J., Igbru, O., & Agbasi, E. N. (2016). Effect of Environmental Cost on Firm Performance: A Study of Selected Manufacturing and Oil and Gas Companies in Nigeria. JournalofAccounting,BusinessandSocialSciences, 1, 1-10.
[38]
Okegbe, T. O., & Ofurum, D. I. (2019). Effect of Environmental Management Accounting and Financial Performance of Nigerian Consumer Goods. International Journal of Advanced Academic Research, 5, 1-15.
[39]
Okezie, B. N., Ibe, S. U., & Kanu, C. I. (2019). Environmental Costs and Financial Performance of Listed Firms in Nigeria. AE-FUNAI Journal of Accounting, Business and Finance(FJABAF), 5, 98-112.
[40]
Oluwamayowa, O. I., & Omowunmi, J. O. (2018). An Evaluation of Environmental Management Accounting (EMA) Practices and Barriers to Its Implementation: A Comparative Study of Nigeria and South Africa. CrawfordJournal of Business&SocialSciences,13, 96-113.
[41]
Oshiole, S., Elamah, A. F., & Amahalu, N. N. (2020). Effect of Environmental Cost Disclosure on Profitability of Listed Oil and Gas Firms in Nigeria. International Journal of AcademicResearchinAccounting,FinanceandManagementSciences,10, 157-165. https://doi.org/10.6007/ijarafms/v10-i2/7405
[42]
Oti, P. A., & Mbu-Ogar, G. B. (2018). Analysis of Environmental and Social Disclosure and Financial Performance of Selected Quoted Oil and Gas Companies in Nigeria (2012-2016). JournalofAccountingandFinancialManagement,4, 1-12.
[43]
Oti, P. A., Effiong, S. A., & Akpan, D. C. (2017). Accounting Perspective of Environmental Footprint of the Oil and Gas Industry in the South-South Region of Nigeria. JournalofAccountingandFinancialManagement,3, 1-11.
[44]
Polycarp, S. U. (2019). Environmental Accounting and Financial Performance of Oil and Gas Companies in Nigeria. Research Journal of Finance and Accounting, 10, 192-202.
[45]
Samejima, F. (1969). Estimation of Latent Ability Using a Response Pattern of Graded Scores. Psychometrika, 34, 1-97. https://doi.org/10.1007/bf03372160
[46]
Sarkis, J., & Cordeiro, J. J. (2001). An Empirical Evaluation of Environmental Efficiencies and Firm Performance: Pollution Prevention versus End-of-Pipe Practice. European JournalofOperationalResearch,135, 102-113. https://doi.org/10.1016/s0377-2217(00)00306-4
[47]
Thissen, D., & Steinberg, L. (1986). A Taxonomy of Item Response Models. Psychometrika, 51, 567-577. https://doi.org/10.1007/bf02295596
UNDSD (2003). Measurement for Improved Environmental & Economic Performance: Environmental Management Accounting for Government. https://sdgs.un.org/publications/measurement-improved-environmental-economic-performance-environmental-management
[50]
Uwaoma, I., & Ordu, P. A. (2016). Environmental Reporting in the Oil and Gas Industry in Nigeria. InternationalJournalofResearchinBusinessStudiesandManagement,3, 1-21.
[51]
Uwuigbe, U., & Jimoh, J. (2012). Corporate Environmental Disclosures in the Nigerian Manufacturing Industry: A Study of Selected Firms. AfricanResearchReview,6, 71-83. https://doi.org/10.4314/afrrev.v6i3.5
[52]
Winship, C., & Mare, R. D. (1984). Structural Equations and Path Analysis for Discrete Data. American Journal of Sociology, 89, 54-110. https://doi.org/10.1086/227834
[53]
World Bank (2021). Manufacturing Value-Added (%ofGDP)—Cameroon. World Bank.
[54]
Zeng, L., He, P., & Shi, J. (2019). Problems and Countermeasures in Environmental Cost Accounting: A Case Study of China’s Coal Industry. E3SWebofConferences,83, Article No. 01013. https://doi.org/10.1051/e3sconf/20198301013
