Corporate Environmental Accounting and Financial Performance in Ghana's Upstream Petroleum Sector: Mediating Roles of Organisational Culture and Stakeholder Pressure

Jerome Cudjoe Katsekpor, Mensah Marfo, Eyram Adzo Nyamuame and Edward Annan

International Journal of Business and Management, 2025, vol. 20, issue 4, 223

Abstract: This study examines the impact of Corporate Environmental Accounting (CEA) on Financial Performance (FP) in Ghana’s upstream petroleum industry, with a focus on the mediating roles of Organisational Culture (OC) and Stakeholder Pressure (SP). Using a structured questionnaire and adopting a quantitative, cross-sectional, and explanatory design underpinned by positivist philosophy, data were collected from 462 industry professionals. Structural Equation Modelling (SEM) was employed for analysis. Findings reveal a significant positive relationship between CEA and financial performance. Organisational Culture mediated 60.0% of CEA’s effect on FP, while Stakeholder Pressure accounted for 49.7% of the mediation. These results emphasise the importance of aligning internal values with sustainability objectives and responding to external stakeholder expectations. This study addresses a gap in the literature by contextualizing CEA within Ghana’s extractive sector and highlighting how internal and external factors jointly influence financial outcomes. The findings contribute to stakeholder theory by demonstrating how cultural alignment and stakeholder responsiveness enhance the financial impact of environmental practices. The study recommends that managers and policymakers integrate environmental accounting initiatives with strategies that foster a sustainability-oriented culture and strengthen stakeholder engagement to drive financial performance and corporate legitimacy.

Date: 2025
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