EFFECT OF ENVIRONMENTAL COST ACCOUNTING ON PERFORMANCE OF MANUFACTURING AND CONSTRUCTION FIRMS LISTED ON THE NAIROBI SECURITIES EXCHANGE, KENYA

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Published: 2016-06-04

Page: 135-143


SAMOEI BEN KIPNGETICH *

The Catholic University of Eastern Africa, Kenya.

LEWIS WAKOLI WACHILONGA

Jomo Kenyatta University of Agriculture and Technology, Kenya.

ROBERT SILIKHE SIMIYU

Finance and Accounting, Masinde Muliro University of Science and Technology, Kenya.

*Author to whom correspondence should be addressed.


Abstract

This study sought to establish the relationship between environmental cost accounting and firm performance of manufacturing and construction firms listed on Nairobi Securities Exchange (NSE), Kenya for the period 2009 to 2013. The main objective of the study was to establish the effect of waste management costs on firm performance. This study was based on eco-centric theory propagated by Pepper [1] and Dobson [2] and used a survey research design. The target population consisted of 14 public companies and a census sampling technique was adopted. Data collection form was used to collect secondary data from financial reports of the companies. In order to find out the strength of relationship between variables, cross tabbing was employed. The results indicated existence of a positive relationship between the independent and dependent variables with level of significance p<0.05. Based on the findings of the study, the researcher made the following recommendation among others: Government should make environmental reporting and disclosure in the annual report and accounts compulsory for all companies and in addition, government agencies should give tax credit to organizations that comply with environmental laws of the land to encourage environmental reporting.

Keywords: Environmental costs, waste management cost, firm performance


How to Cite

KIPNGETICH, S. B., WACHILONGA, L. W., & SIMIYU, R. S. (2016). EFFECT OF ENVIRONMENTAL COST ACCOUNTING ON PERFORMANCE OF MANUFACTURING AND CONSTRUCTION FIRMS LISTED ON THE NAIROBI SECURITIES EXCHANGE, KENYA. Journal of Global Economics, Management and Business Research, 7(2), 135–143. Retrieved from https://ikprress.org/index.php/JGEMBR/article/view/2993

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