Impact of environmental management accounting on the financial performance of publicly listed mining companies in the Philippines

• Main Authors: Alcaparaz, Nicole Mary D., Lim, Patrick Ryan Lucien T., Maulit, Kerrigan James Roi P., Ticman, Mikhaila Nadine J.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Environmental auditing > Philippines; Mining industries > Environmental aspects > Philippines; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7285
• Institution: De La Salle University

In this study, the researchers aim to determine the effects of environmental management costs on the financial performance of publicly listed mining companies in the Philippines and to determine whether it is consistently applied over a five year period. Financial performance is measured in terms of profitability and liquidity measures, while the extent of applying environmental management accounting is categorized into four environmental cost groups. A total of 17 mining companies in the Philippines were used in this study. Data analysis included the use of Pearson product-moment correlation, multiple collinearity, and panel data regression in determining whether a significant relationship exists between variables in consideration of time. The researchers determined that fuel, energy & water, and insurance significantly affect the financial performance of mining companies, while six environmental costs have differing effects each year. Moreover, there is no time consistency for the effect of EMA to the financial performance measures for the five year period. The researchers conclude that not all of the cost groups will significantly affect the profitability and liquidity of the company. Furthermore, the significant effects on the financial performance caused by environmental management costs throughout 2010 to 2014 does not entail that such relationship would still be pertinent for the succeeding periods. The researchers recommend that the mining companies should have an extensive disclosure of all relevant environmental management costs. By doing so, this might help the government and other regulatory bodies to monitor the companies compliance, and also help future researchers in further investigating the relationship of environmental management costs to financial performance.