Date of Publication

5-2021

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories

Accounting | Business Administration, Management, and Operations

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Thesis Advisor

Herminigilda E. Salendrez

Defense Panel Chair

Sir. Jerwin B. Tubay

Defense Panel Member

Rodiel C. Ferrer
Jerwin B. Tubay
Mark B. Bendo

Abstract/Summary

There are companies whose industry is greatly focused on using natural resources that create a larger contribution in the destruction of the environment. These industries would allocate costs to obtain or manufacture their product while also allocating costs to preserve the environment as regulated by environmental laws created by the government. The method to be adopted is the environmental accounting standards, which help translate socially and environmentally responsible behavior in monetary terms. The study aims to establish the effect of environmental accounting, and the factors affecting it, on the profitability of industrial companies that are publicly-listed in the Philippines from 2015-2019.

The study will utilize Panel Data Regression to analyze the effect of environmental accounting, and the factors affecting it, on firm profitability. Environmental accounting was measured by the environmental costs incurred by the company. While the factors affecting Environmental Accounting are the Number of Board Members, Years Listed in the PSE, Independent Auditor Type, Firm Size, and Financial Leverage. On the other hand, Firm Profitability was measured using Return on Capital Employed, Net Profit Margin, Dividends per Share, and Earnings per Share. The findings presented that environmental costs and factors affecting environmental accounting had a significant effect on firm profitability represented by Return on Capital Employed. Meanwhile, environmental costs and factors affecting environmental accounting had no significant effect on firm profitability represented by Net Profit Margin, Dividend per Share, and Earnings per Share. Overall, the results presented that declaration of environmental costs may be greatly beneficial to a company’s firm profitability.

Abstract Format

html

Language

English

Keywords

Environmental auditing—Philippines; Environmental responsibility—Philippines; Profit—Philippines

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Embargo Period

6-1-2021

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