A Study on Impact of Environmental Accounting on Profitability of Companies listed in Bombay Stock Exchange

TL;DR

This study investigates how environmental accounting expenditures influence the profitability metrics of companies listed on the Bombay Stock Exchange, revealing a positive relationship through panel data analysis.

Contribution

It provides empirical evidence of the positive impact of environmental protection costs on various profitability indicators of BSE-listed companies.

Findings

Significant positive relationship between environmental costs and profitability metrics.

Environmental accounting positively affects return on assets and equity.

Data analysis confirms environmental spending enhances firm profitability.

Abstract

The study focuses on the Impact of Environmental Accounting on the Profitability of Companies listed on the Bombay Stock Exchange. The study has considered the Amount spent on Environmental protection as an Independent variable and Return on Capital Employed, Return on Assets, Return on Net worth/equity, Net Profit Margin, and Dividend per Share as the Dependent variable. The present study is to analyses the relationship between Amounts spent on Environmental protection costs and Return on Capital Employed, Return on Assets, Return on Net worth/equity, Net Profit Margin, and Dividend per Share. The data is collected from 18 companies listed on the Bombay Stock Exchange for 10 years from the Annual reports of companies. The data collected were analysed using Panel data Regression in E-Views. Results revealed that there is a significant Relationship between Environmental protection Cost and Return on Capital Employed, Return on Assets, Return on Net worth/equity, Net Profit Margin, and Dividend per Share. The study shows that Environmental accounting impact positively on Firms profitability.