Determinants influencing the application of green accounting: The case of Vietnamese constructions firms

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Abstract

Green and sustainable development is a common trend in the world, in which firms are not only interested in socio-economic development, but also environmental protection and environmental indicators in the production process. Green accounting, an important tool to assess the environmental impact on the economy, is considered a transition towards green and sustainable economic development (Gray, 1992). This study is conducted to assess the impact of all factors on the application of green accounting in Vietnamese construction firms, of which data is collected from 243 survey questionnaires of managers and accountants of Vietnamese construction firms. By using Cronbach’s alpha test, exploratory factor analysis (EFA) test, and multiple regression analysis to check and forecast information, there are five determinants affecting the application of green accounting in Vietnamese construction firms as staff levels and resources, legal and regulatory systems, customer demands, legal and educational systems, stakeholder, managers’ perceptions, internal resources. Based on the findings, some suggestions are proposed to management businesses and agencies to compensate for the shortcomings in the process of applying green accounting, contributing to making green accounting one of the most effective tools. It is important to appraise the environmental impact on the economy and is acknowledged as a transition towards sustainable development and green economic development.

Keywords: Construction Firms, Green Accounting, Environmental Accounting, Sustainable Development

Authors’ individual contribution: Conceptualization — T.M.P.N.; Methodology — M.D.T.; Validation — T.M.P.N.; Writing — Review & Editing — T.M.P.N., H.H.H., and M.D.T.; Visualization — T.M.P.N.; Supervision — M.D.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M41, Q56

Received: 03.01.2023
Accepted: 26.04.2023
Published online: 28.04.2023

How to cite this paper: Nguyen, T. M. P., Ha, H. H., & Tran, M. D. (2023). Determinants influencing the application of green accounting: The case of Vietnamese constructions firms [Special issue]. Corporate Governance and Organizational Behavior Review, 7(2), 282–292. https://doi.org/10.22495/cgobrv7i2sip7