Effect of Environmental Accounting on Company Financial Performance in Kisii County

Abstract

This research focused on the impact of environmental accounting on financial performance of corporate organisations in Kisii County. The main variables of the study were EA application being the independent variable, and perceived financial performance as the dependent variable. The study used descriptive research design. The study was carried out at Kisii County, the target population was 144 consisting accountants and auditors in the 16 corporate organizations. The study adopted a stratified sampling design where simple random sampling technique was used to identify a sample size of 49 employees drawn from all the 16 corporations. Both qualitative and quantitative data were collected using questionnaire, and secondary data and descriptive statistics were used to analyze the responses. The findings were presented in form of tables, charts and graphs. Findings revealed that the perceived financial performance of the corporate organization in general was in good status as perceived by the employees. Analysis of individual perceived financial performance parameters shows that revenue generation has been improving, cash flows are seen to be in a good state and profitability has been on the increase. Constructs of EA application (environmental information, environmental evaluation, compliance of environmental laws and tracking of environmental cost savings) are significantly positively related to perceived financial performance of the corporate organizations.