Impact of Environmental Accounting on Corporate PerformanceA Study of Corporations Adopted Environmental Accounting inPakistan

Abstract

One of the major factors affecting corporate performance in Pakistan is a company's attitude toward the environment. The aim of this research is to findhowenvironmental accounting affects corporate performance in Pakistan. The study's data collected from the annual reports and financial statements of 320 non-financial firms on the Pakistan stock exchange. Fixed effect regression analysis was usedtoexamine the findings. The results show that environmental accounting has a positiverelationship with earnings per share (EPS), dividend per share (DPS), returnoncapital employed (ROCE), and net profit margin (NPM). Based on these findings, it is proposed that the government should provide tax credits to companies that follow environmental regulations and enforce environmental reporting in Pakistantoimprove business and national performance.

Key words: Environmental Accounting, Corporate Performance, and CorporateReporting