The interplay of sustainability, corporate green accounting and firm financial performance: a meta-analytical investigation
Sustainability Accounting, Management and Policy Journal
ISSN: 2040-8021
Article publication date: 9 October 2023
Abstract
Purpose
This study uses a meta-analysis approach to analyse the impact of applying corporate green accounting practices as vital sustainable development tools on firm performance. This study aims to examine the moderating effects of country-specific variables and characteristics on the association between corporate green accounting and firm performance.
Design/methodology/approach
Three databases were used for a meta-analysis of 68 independent studies involving 19,625 subjects conducted over 25 years from 1996 to 2020.
Findings
The results show that corporate green accounting positively affects firm performance, but country-specific variables do not moderate this association. The positive association between corporate green accounting and firm performance was enhanced when it was measured in terms of environmental costs. Subgroup analyses revealed that study characteristics are significant source of heterogeneity in the corporate green accounting indicators-firm performance association.
Practical implications
The findings suggest that firms should strategise to integrate environmental costs into their respective financial accounting frameworks, which would help managers justify the contribution of their firms towards environmental protection.
Social implications
Accessing accurate and timely information on corporate environmental functioning can assist national policymakers in framing appropriate legislation on environmental protection and sustainable development.
Originality/value
Although meta-analysis has been used previously in accounting research (Guthrie and Murthy, 2009; Alcouffe et al., 2019), to the best of the authors’ knowledge, this is the first study to use a meta-analytical technique to examine the impact of corporate green accounting on firm performance.
Keywords
Acknowledgements
The authors are grateful to Professor Carol Adams, Dr. Vassiliki Grougiou, Dr. Seraina C. Anagnostopoulou and Dr. Joanne Tingey-Holyoak for their helpful suggestions.
The authors declare no potential conflicts of interest concerning the research, authorship or publication of this manuscript.
The authors received no financial assistance for conducting the research or publishing this paper.
Citation
Khan, S. and Gupta, S. (2023), "The interplay of sustainability, corporate green accounting and firm financial performance: a meta-analytical investigation", Sustainability Accounting, Management and Policy Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SAMPJ-01-2022-0016
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited