Applying Environmental Cost Management Accounting in Brick Production Companies – Evidence from Vietnam

Abstract

Application of environmental cost management accounting (ECMA) in companies is becoming increasingly clear, especially in production sector. ECMA has attracted significant attention and it is a useful tool for improving environmental performance and enhancing financial benefits. However, in Vietnam, ECMA has not really become popular and is considered a new field in both research and practice. Thus, the paper will focus on researching application of ECMA in brick production companies that has negative impacts on the environment. Research objectives is to determine factors that influence application of ECMA in Vietnamese brick companies. So that author presents two theories to construct five hypotheses about factors impacting on ECMA application including contigency theory and institutional theory. The study uses qualitive research methods to explore influence factors. Results show that five factors including government coercion pressure, normative pressure, memitic pressure, positive environment strategy and managers’ perceipt of environmental uncertain have positive relationships with ECMA application. Derived from factors, the study provides some recommendations on brick production companies, the government and stakeholders to increase level off ECMA application.

Keywords: Brick Production Companies, Environmental Cost Management Accounting (ECMA), Contigency Theory, Institutional Theory, Vietnam.