Abstract
Purpose- The purpose of this study was to examine the effect of board education diversity on environmental accounting disclosure among firms listed in the Nairobi Security Exchange. Design/Methodology- The study adopted both explanatory and longitudinal research design. The target population comprised 65 listed firms at Nairobi Securities Exchange from 2008 to 2017. However, inclusion criteria were the 27 listed firms from 2008 to 2017, giving a total of 270 observations. A documentary analysis guide was used to collect secondary data. Findings- The findings showed that board education had a significant and positive impact on environmental accounting disclosure. The findings validate the human capital theory's proposition. Practical Implications- Firms listed at the Nairobi Securities Exchange ought to diffuse the education level of the board of directors to increase the level of environmental accounting disclosure. Besides, their boards should be well educated and experienced to enhance disclosure of environmental accounting.
Highlights
Environmental accounting (Bassey, Effiok, & Eton, 2013) is designed to provide data for assessing the conduct of a company towards its setting and the financial impact of such action
Using a scoring system to develop an environmental accounting index (EDI), consistent with previous study findings, our results indicate that the mean value of environmental accounting disclosure ranged from a minimum of 0.06 to a maximum of 0.87
The level of environmental accounting reported during the period 2008 to 2017 is low on an aggregate basis, the extent of environmental disclosure has increased between 2008 and 2017 as well as the number of Kenyan companies disclosing environmental information
Summary
Environmental accounting (Bassey, Effiok, & Eton, 2013) is designed to provide data for assessing the conduct of a company towards its setting and the financial impact of such action. Environmental management accounting is a collection of methods and techniques that can be used to gather and provide management information on the shared connection between the business and the environment (Debnath, Bose, & Dhalla, 2011). Environmental accounting and reporting enhance the quality of decision-making. It allows the corporations to set objectives to reduce major environmental indicators such as greenhouse emissions, gas emissions, power use, resource use (Beredugo & Mefor, 2012). Through environmental accounting and reporting, firms understand the need to change unsustainable consumption, unfavorable patterns of production, thereby protecting and managing natural resources available. The situation may dissuade patronages from customers, vendors, investors, surrounding communities and possible public sanction that becomes aware of the contribution of an organization to sustainable growth
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