Factors Influencing Adoption Of Environmental Management Accounting (Ema) Practices Among Manufacturing Firms In Nairobi, Kenya

Abstract

EMA is concerned with the accounting information needs of managers in relation to corporate activities that affect the environment as well as the environment-related impacts on the corporation. It is an area that has tried to link to innovative strategies and corporations have used it as an environmental performance indicator (EPI) to measure environmental performance. The study sought to establish whether the financial status of a company influences adoption of Environmental management accounting practices among manufacturing firms in Kenya. The study is significant to the managers of corporate entities that operate in the manufacturing sector, Local government and environmental regulatory agencies and the primary stakeholders to a firm. The researcher used a mixed research design approach of both quantitative and qualitative research design. Demographic data of the firms used in the survey was presented in tables and analyzed using descriptive statistics for data based on scales and regression analysis for data relating to contextual variables influence on EMA adoption. Regression of coefficients results show that Financial Status and Adoption of EMA are positively and significant related. The study recommended that companies should always encourage EMA practices consistently to realize increased financial performance as well as promoting the company’s portfolio image. Keywords: Environmental management Accounting, Financial value, Manufacturing firms