The effect of environmental management accounting on environmental and financial performance: An application on Borsa Istanbul (BIST)

Although one of the founding purposes of businesses is to make profits, the fact that their activities are independent of the environment is an important fact that no business can ignore. It is a known fact that businesses that isolate themselves from the environment cannot continue their existence for a long time. On the other hand, businesses that are sensitive to the environment will also be respected by society. In order for companies to gain this respect, they must keep the damage they cause to the environment at a minimum level or even cause no damage as a result of their activities. We have often heard about the damage that companies, especially those operating in the chemical field, cause to the environment as a result of their waste. The possible consequences of such events for the business, in other words, will be the cost of the negativities it creates for itself and its environment. Environmental costs include both internal and external costs. These costs briefly consist of all costs incurred in connection with the damage to the environment and the protection of the environment. Research on how companies that act in accordance with Environmental Management Accounting are affected by these costs has revealed that reducing expenses for the consumption of factors such as energy, water and raw materials, which are among the factors that need to be protected most carefully today, will create a competitive advantage for businesses. If we start from this perspective; We can say that using environmentally friendly technology, not ignoring energy costs, and maintaining ecological balance are among the factors that companies should consider in competition. In this study, the impact of Environmental Management Accounting on environmental and financial performance was examined. In the study, the survey applied to businesses listed on Borsa Istanbul (BIST) was evaluated with Structural Equation Model (SEM). The direct impact coefficients obtained through the structural model in the study proved that environmental management accounting has positive effects on environmental performance input, environmental performance output and firm performance. The indirect coefficient value obtained through the structural model in the study showed that environmental performance input provides a partial mediating effect on the effect of environmental management accounting on environmental performance output.