How does environmental accounting information influence attention and investment?

Hank C. Alewine and Dan N. Stone

International Journal of Accounting & Information Management, 2013, vol. 21, issue 1, 22-52

Abstract: Purpose - Environmental consequences increasingly influence management strategy and choice. The purpose of this paper is to investigate the effects on attention and investment of: incorporating environmental data into a balanced scorecard (BSC), called the sustainability balanced score card (SBSC) and the organization of environmental accounting information. Design/methodology/approach - In a between‐participant design, participants (n≈ 95) chose from among two investments using BSCs. Participants were randomly assigned to one of three conditions: no environmental data (control or BSC condition); environmental data embedded within the traditional BSC (four‐perspective SBSC); or environmental data added to a BSC as a standalone fifth perspective (five‐perspective SBSC). Findings - Investment to achieve environmental stewardship objectives was greater with the four‐perspective SBSC than the traditional BSC. In addition, participants were most efficient, i.e. spent the least total time, and least time per data element examined, with the four‐perspective SBSC. Finally, the time spent examining, and decision weight given to, environmental data were unrelated. Research limitations/implications - Professional managers and accountants may have greater knowledge of environmental metrics than do students, who are the participants in this study; hence, the results may not generalize to higher knowledgeable professionals since their processing of environmental data may differ from the lower knowledge participants of this study. Practical implications - The form (i.e. organization) of environmental accounting data changed the allocation of participants' attention while the presence of environmental accounting data changed participants' investments; hence, both the presence and form of environmental accounting information influenced decision making. Originality/value - This study is among the first to show differing influences from both the presence and organization of environmental accounting data on attention and investment.

Keywords: United States of America; Investments; Decision making; Accounting information; Environmental accounting; Sustainability balanced scorecard; Investment decisions; Decision strategies (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ijaimp:v:21:y:2013:i:1:p:22-52

DOI: 10.1108/18347641311299731

Access Statistics for this article

International Journal of Accounting & Information Management is currently edited by Dr Xin (Robert) Luo and Professor Han Donker

More articles in International Journal of Accounting & Information Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().