Influences of Behavioral Intention to Engage in Environmental Accounting Practices for Corporate Sustainability: Managerial Perspectives from a Developing Country

Abstract

Environmental degradation is a serious global issue that has received increasing attention from scholars, policymakers, regulators, environmental activists, and the public as a whole. In the meantime, corporations have been criticized as major contributors to environmental pollution. Environmental accounting (EA) is a corporate practice that seeks to account for the cost of environmental impacts of business operations. However, it is questionable whether the true cost of environmental impacts of business operations is accounted for in the conventional accounting systems. In order to shed more light on this issue, this study examines key drivers of managerial intention to engage in EA practices in Sri Lanka. We employ the theory of planned behavior to conceptualize the antecedents of managers’ intention to engage in EA practices. The results of the partial least square structural equation model (PLS-SEM) evaluation revealed that managers’ intention is significantly influenced by the attitudes towards EA practices, subjective norms, and perceived behavioral control. Our results also indicate that a larger proportion of the variance of perceived behavioral control is explained by the perceived cost and complexity, perceived regulatory pressure, and organizational environmental orientation. The findings of this study provide important theoretical and practical implications for scholars, managers, and policymakers.

Developing environmental performance through sustainable practices, environmental CSR and behavioural intentions: an online approach during the COVID-19 pandemic

“…Finally, the path analysis underlined that BI had a positive and significant effect on EP ( H8 was accepted). Likewise, such consequences are consistent with the findings of previous studies by Darnall and Sides (2008), He (2020) and Chen et al (2020), who claimed BIs’ predictive power of BIs towards EP and environmental sustainability (Swaim et al , 2013). These usually happen through the TPB theory.…”

“…Using the theory of planned behaviour (TPB), factors such as subjective norms, attitudes towards behaviour and personal control significantly predict the BIs and environmental sustainability (Swaim et al , 2013). According to Chen et al (2020), environmental accounting attitudes considerably affect BIs. When companies are confronted by market pressure, they are likely to consider their pro-environmental behaviours.…”

The COVID-19 Pandemic and the Acceptance of E-Learning among University Students: The Role of Precipitating Events

“…Therefore, we used a PLS-SEM approach using Smart PLS 3 software in our data analysis and model evaluation. More recently, PLS-SEM has widely been used in various studies in different disciplines such as Total Quality Management, IT, Environmental Accounting, Finance, and particularly in Marketing, relative to covariance-based SEM (CB-SEM) (see, for example, [64][65][66][67]). This is because PLS-SEM is capable of handling complex models, and because of its high statistical power and flexibility in parametric assumption and sample size [68,69].…”

“…We also assessed the multi-collinearity of exogenous latent constructs with respect to their endogenous latent construct in the structural model and the results of which is presented in Table 6. The VIF values below 5 are indicative of the absence of multi-collinearity issue in the empirical model [66].…”

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“…Diaz, M. A. H. et al revealed the application of the ecological full-cost accounting analysis framework to the treatment of chemical wood products and concrete crossover, which resulted in the selection of the lowest environmental cost concrete and furfural landfill treatments after comparative analysis of combustion and landfill treatments [9]. Chen, X. et al examined the reasons behind engaging in ecological accounting in Sri Lanka, and the findings stated that it was due to the fact that managers significantly felt the positive impact of EA practices, which included subjective norms and perceived behavioral control [10]. Cheng, H. et al studied the association between corporate production behavior and environmental accounting behavior based on data from 253 Chinese firms.…”