Journal of Accounting & Organizational Change - Vol. 19 No. 3 - The impact of environmental management accounting on environmental and financial performance: empirical evidence from Bangladesh

Jul 22, 2026

Purpose – This study investigates how environmental management accounting (EMA) affects manufacturing firms’ environmental and financial performance in Bangladesh, emphasizing environmental performance (EP), financial performance (FP), environmental information systems (EIS), knowledge management (KM), green innovation, and energy efficiency (EE). Design/methodology/approach – Using a quantitative survey of 323 manufacturing-firm responses, the model is tested with PLS-SEM (Smart PLS v3.3) and robustness checks. Findings – EMA shows a positive and significant relationship with EP and FP, supported by stakeholder and institutional pressures. Originality/value – Results inform policymakers, regulators, government, and executives on mechanisms to improve EP and FP through KM, EIS, green innovation, and EE.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages27

Reading Time1 h 8 min

AccessFree to download

Abstract

Keywords

1. Introduction

Environmental degradation and regulatory pressure

Stakeholder importance and sustainability management

Findings

Originality/value

The current issue and full text archive of this journal is available on Emerald Insight at: [https://www.emerald.com/insight/1832-5912.htm](https://www.emerald.com/insight/1832-5912.htm) JAOC 19,3 420 Received 15 November2021 Revised 5 March 2022 21 June 2022 Accepted 29 June 2022 Journal of Accounting & Organizational Change Vol. 19 No. 3, 2023 pp. 420-446 © EmeraldPublishingLimited 1832-5912 DOI 10.1108/JAOC-11-2021-0157 The impact of environmental management accounting on environmental and ﬁnancial performance: empirical evidence from Bangladesh Bishawjit Chandra Deb Department of Accounting and Information Systems, Comilla University, Comilla, Bangladesh Md. Mominur Rahman Department of Accounting and Information Systems, Comilla University, Comilla, Bangladesh and Department of Business Administration, BGIFT Institute of Science & Technology (BIST), Gazipur, Bangladesh, and Muhammad ShajibRahman Department of Accounting and Information Systems, Comilla University, Comilla, Bangladesh Abstract Purpose – This study aims to investigate the impact of environmental management accounting (EMA) on manufacturing companies’ environmental and ﬁnancial performance in Bangladesh. Thus, this research recognizes essential factors such as EMA, environmental performance (EP), ﬁnancial performance (FP), environmental information systems (EIS), knowledge management (KM), green innovation and energy efﬁciency (EE) . Design/methodology/approach – This research uses a quantitative approach and uses 323 responses from the manufacturing ﬁrms. This research tests the study model through the “Partial Least SquareStructural Equation Modeling” (PLS-SEM) technique using Smart PLS v3.3 software. This research uses The authors would like to acknowledge the support of the manufacturing companies’ employees andoﬃcers, who devoted time to ﬁlling and returning questionnaires sent to them. We are also grateful to the data collectors. We are thankful to the colleagues and reviewers who assist us to amplify the quality of the paper. Funding: This research receives no external funding for publication but receives research grants from Comilla University to conduct the study. Availability of data and materials: Data and materials are available upon reasonable request through the corresponding author. Competing interests: This research declares no competing interests. Authors ’ contributions: BCD conducted, conceptualized and supervised the research. BCD performed statistical analysis, reviewed a portion of literature, developed conceptual framework and wrote research contribution. MMR collected data, performed statistical analysis, reviewed portion of literature, performed referencing and prepared the drafted report. MSR made revisions as per reviewers’ comments. As the corresponding author, MMR bears full responsibility for the submission, and conﬁrms that all authors listed on the title page have contributed signiﬁcantly to work. Finally, all authors read and approved the ﬁnal manuscript. AMOS v24 and 40% sample consideration to check the robustness. The study passes various model ﬁt measures, i.e. reliability, validity, factor analysis and goodness of ﬁt. Findings – The research ﬁnds that EMA is positively and signiﬁcantly associated with EP and FP. The study also ﬁnds a substantial relationship between recognized factors with EMA and EP. This research connects the stakeholder theory and institutional theory to the EMA model and shows the pressures from stakeholders and institutions reassuring the manufacturing ﬁrms to implement EMA. This research evidences that EMA enhances EP and FP. Originality/value – The policymakers, regulators and government can consider these ﬁndings to formulate policy regarding companies’ EP and FP. Particularly, company executives can focus on KM, EIS, green innovation andEE factors for EP and FP. Keywords Energy efﬁciency, Environmental management accounting, Envir

FAQs

What is the study’s main purpose regarding environmental management accounting?

The study examines the impact of environmental management accounting (EMA) on manufacturing companies’ environmental and financial performance in Bangladesh, including roles of EIS, KM, green innovation, and energy efficiency.

How is the research conducted and which method is used?

A quantitative approach is used with 323 responses from manufacturing firms. The study model is tested using Partial Least Square Structural Equation Modeling (PLS-SEM) with Smart PLS v3.3, along with robustness checks.

What key findings link EMA to outcomes?

EMA is found to be positively and significantly associated with environmental performance (EP) and financial performance (FP). The study also reports substantial relationships between recognized factors and EMA/EP, supported by stakeholder and institutional theory.

Jul 22, 2026

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