Impact of disclosure of environmental accounting information on financial performance: Negative or positive?

research model through the use of the White's General test. The test 
results show that the p value is greater than 0.05, so with a significance level of 5% the H0 
hypothesis on the uniformity of the variance is acceptable. That is, the pattern does not exist 
in the phenomenon of variance. With the above analysis, we assert that appropriate research 
data to perform multivariate regression analysis to examine the relationship between social 
responsibility and financial performance. 
5.3. Discussions 
(1) The relationship between the level of disclosure of environmental accounting and 
the financial performance of the current year. 
Table 7 presents the results of regression using the least squares (OLS), fixed effects 
model (FEM) and random effects model (REM). The results show that there are differences 
between the three methods. Which model is best suited for the case where ROA is a 
dependent variable and where TBQ is a dependent variable. Research conducted the Breusch-
Pagan Lagrange test; Hausman test; and F_test, the test results are as follows: 
- ROA is a dependent variable: For the results of the Breusch-Pagan Lagrange test, the 
accepted hypothesis H0 (Prob = 1.0000) thus the pooled OLS model is more appropriate than 
the REM model. For the Hausman test, rejecting the hypothesis H0 (Prob = 0.0125) means 
that the FEM model is more appropriate than the REM model. However, based on F-test 
n trÞ - Kinh nghiÖm quèc tÕ vµ thùc tr¹ng ë ViÖt Nam 
 29 
results (Prob = 0.356), it is also assumed that the fit model is pooled OLS. Thus, the final fit 
model to measure this relationship is the pooled OLS model, with a 5% significance level. 
The results in Table 7, (Sig. = 0.0337<0.05) show that the level of disclosure of 
environmental accounting information affects the current year's ROA. 
- TBQ is a dependent variable: For the results of the Breusch-Pagan Lagrange test, 
showing that rejecting the null hypothesis (Prob = 0.0000), the REM model is more 
appropriately modeled pooled OLS. Similarly, for the Hausman test, the test also rejected the 
hypothesis H0 (Prob = 0.0000) that the FEM model was more appropriate than the REM 
model. At the same time, the F-test also shows that the FEM model is a suitable model (Prob 
= 0.0000). Therefore, the appropriate model for measuring this relationship is the FEM 
model. The results in Table 7 (Sig. = 0.1152> 0.05) show that the level of disclosure of 
environmental accounting information has no impact on the current year's TBQ. 
Table 7: Regression Results- the case does not consider latency factor 
ROA TBQ 
OLS FEM REM OLS FEM REM 
ENVIt 0.245 
(.0337) 
0.325 
(.0123) 
0.254 
(.0242) 
0.653 
(.0762) 
0.287 
(.1152) 
0.428 
(.1774) 
SIZE -0.332 (.0017) 
-0.743 
(.0054) 
0.262 
(.0074) 
0.576 
(.0045) 
-0.764 
(.0037) 
0.296 
(.0017) 
LEV -0.254 (.0057) 
0.098 
(.0378) 
-0.454 
(.0028) 
-0.857 
(.0028) 
0.165 
(.0065) 
-0.197 
(.0037) 
AGE 0.332 (.0076) 
0.187 
(.0038) 
0.178 
(.0350) 
0.287 
(.0076) 
0.276 
(.0012) 
0.546 
(.0067) 
AUD 0.987 (.0074) 
0.251 
(.0029) 
0.584 
(.0095) 
0.186 
(.0028) 
0.441 
(.0045) 
0.427 
(.0082) 
Number of Obs 285 285 285 285 285 285 
Constant 0.312 0.313 0.415 0.525 0.621 0.723 
Adj R – squareds 0.3242 0.3421 0.3532 0.4224 0.4414 0.4943 
Thus, the level of disclosure of environmental accounting information of enterprises 
listed on the Vietnam securities market influences the financial performance according to the 
current year's accounting. The relationship between the level of disclosure of environmental 
accounting information and the financial performance of the current year. This result is 
contrary to the studies of (Isanzu & Fengju, 2016; Nelling & Webb, 2009; Tien et al., 2017). 
However, this is explained by the sensitivity of the Vietnamese stock market with financial 
accounting information disclosed. 
(2) The relationship between the level of disclosure of environmental accounting and 
the financial performance of the following year. 
To examine the relationship between the level of toxicity disclosed by environmental 
accounting information and the financial performance of the following years, the study 
performed a multivariate regression analysis with dependent variables: ROA, TBQ and t-test. 
n trÞ - Kinh nghiÖm quèc tÕ vµ thùc tr¹ng ë ViÖt Nam 
 30 
The results of the regression analysis are presented in Table 8. Similarly, the study also 
conducted Breusch-Pagan Lagrange test; Hausman test; and F_test, to choose the most 
suitable model to measure this relationship. The test results indicate that, in the case of ROA 
as a dependent variable, the OLS model is best suited, in the case of TBQ as the dependent 
variable, the FEM model is sub-merged with the significance level of 5%. 
Table 8: Regression Results – The case considers the latency factor 
ROA TBQ 
OLS FEM REM OLS FEM REM 
ENVIt-1 0.516 
(.0121) 
0.312 
(.0113) 
0.845 
(.0154) 
0.165 
(.0154) 
0.117 
(.0119) 
0.224 
(.0423) 
SIZE -0.643 (.1645) 
-0.154 
(.0138) 
0.887 
(.0143) 
0.129 
(.0197) 
-0.185 
(.0165) 
0.654 
(.0187) 
LEV -0.186 (.0011) 
0.086 
(.0187) 
-0.413 
(.0342) 
-0.175 
(.0543) 
0.178 
(.0197) 
-0.197 
(.0165) 
AGE 0.148 (.0198) 
0.087 
(.0023) 
0.186 
(.0190) 
0.581 
(.0123) 
0.276 
(.0087) 
0.286 
(.0017) 
AUD 0.197 (.0065) 
0.286 
(.0017) 
0.325 
(.0086) 
0.372 
(.0026) 
0.327 
(.0098) 
0.154 
(.0036) 
Number of Obs 228 228 228 228 228 228 
Constant 0.134 0.165 0.253 0.367 0.434 0.354 
Adj R – squareds 0.4234 0.3268 0.3136 0.4134 0.4654 0.4035 
The results in Table 8 show that Sig. = 0.0121 and Sig. = 0.0119 to <0.5, there is a 
relationship between the level of disclosure of previous year's accounting information and the 
financial performance of the following year. As a result, the level of disclosure of 
environmental accounting information by enterprises listed on the Vietnamese securities 
market affects the financial performance according to the accounting and market of the 
following year. This result is consistent with studies(Isanzu & Fengju, 2016; Nelling & Webb, 
2009; Tien et al., 2017). This shows that the clearer, more detailed and transparent disclosure 
of environmental accounting information is more conducive to the future financial 
performance of the business. 
6. Conclusion and Recommendations 
The results show that the mining sector in Vietnam has made positive changes in the 
awareness of social responsibility and disclosure of accounting information related to the 
environment. It has been proven that mining companies with high economic efficiency are 
often among the top companies that are well-regarded for their environmental responsibility, 
as demonstrated by full and detailed disclosure information related to the environment. 
Disclosure of environmental accounting information is a way for mining enterprises to raise 
their image and prestige with related parties. However, data on the level of disclosure of 
environmental accounting information by mining enterprises from 2013 to 2017 show that 
this level has not really met the information needs of the stakeholders. Therefore, in the 
coming time, businesses need to strengthen the solution to complete environmental 
n trÞ - Kinh nghiÖm quèc tÕ vµ thùc tr¹ng ë ViÖt Nam 
 31 
accounting to support the disclosure of information related to the environment is really 
necessary. From the research results, the research team proposed some recommendations as 
follows: 
 First, the need to raise awareness of corporate environmental responsibility and the 
benefits of disclosing detailed environmental accounting information to the financial 
performance of the business. Some businesses say that if they focus on environmental 
protection activities, transparency of environmental accounting information is costly, reducing 
profits, it is a misconception. The empirical results of the study have shown that the level of 
disclosure of environmental accounting information affects the economic efficiency of 
enterprises both now and in the future. Therefore, the disclosure of environmental accounting 
information is not only to comply with environmental law, avoid legal complications but also 
to improve the image and increase the financial efficiency of the business. 
Second, in the Vietnamese context, the reporting of primary environmental accounting 
information is still voluntary and free of any general pattern, with only large companies 
reporting responsibility. The number of companies reporting social responsibility is very low. 
Research results are the basis for encouraging organizations to change views when making 
annual reports as well as the content of disclosure in their annual report should not be too 
focused on the indicators. Financial results achieved during the year that ignored the 
environmental performance achieved. Because, together with the trend of green development 
of the world, investors are more interested in the information related to the implementation of 
corporate social responsibility. Consequently, with the implementation of environmental 
responsibility, the disclosure of this information to investors is also a way to attract their 
attention. 
Basing on the quantitative and qualitative research methodology, the team assessed the 
impact of the level of disclosure of environmental accounting information on the financial 
performance of listed mining companies in Vietnam securities market. The results indicate 
that the level of disclosure of environmental accounting information affects the financial 
performance of businesses both now and in the future. From the research results, the team has 
made several recommendations to promote the level of disclosure of environmental 
accounting information in the future. The article has enriched the sources of research on 
environmental accounting as well as contributed to the disclosure of environmental 
accounting information in the future. However, research is limited to two financial measures 
and four control variables, while still using other indicators to test this relationship, further 
limiting the sample also makes sense. Dependency of affected results. Nevertheless, we 
consider these to be suggestive for further research in the future.‡ 
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