Impact of environmental accounting practices on firm performance and environmental efficiency- An empirical study with reference to the Indian Sugarcane Industry

This study has investigated the impact of the adaption of environmental accounting practices on the firm performance and environmental efficiency respectively through an empirical approach.

In this research the environmental accounting practice has been defined and measured using three constructs namely positive environmental strategy, financial condition and government enforcement. Environmental efficiency has been measured using the scale developed by Doorasamy, (2014) and firm performance has been measured using the scale developed by Ismail and King, (2005). Quantiative primary data has been collected from 323 respondents working in the finance department of select sugar manufacturing companies in the northern part of India through stratified disproportionate random sampling technique. Analysis of the data has been done using MLR through SPSS software

The application of Multiple Linear Regression on the data collected reveals that the variable financial performance is found to explain 56% of the variable environmental accounting practices and the variable environmental efficiency explains 83.1% of the variable environmental accounting practices revealing a good model fit

There are very few numbers of studies so far done with respect to Indian sugar cane industries’ environmental accounting practices. This study has addresed the gap. Original conceptual model has been developed and tested through empirical approach.