Linking stakeholder and regulatory pressures to environmental disclosure quality the mediating role of environmental management accounting

Abstract

Research purpose: This study aims to examine the mediating role of Environmental Management Accounting (EMA) in the relationship between stakeholder pressure, managerial awareness, corporate culture, environmental regulations, and Environmental Disclosure Quality (EDQ) within Vietnam’s manufacturing sector. Research Motivation: The motivation of this study stems from the increasing global emphasis on sustainable production and transparency in environmental reporting. Despite the growing attention to green practices, empirical evidence explaining how EMA transforms internal and external pressures into improved environmental disclosure remains limited, particularly in emerging economies like Vietnam. Research design, approach, and method: Drawing on stakeholder theory and institutional theory, data were collected from manufacturing firms through a structured survey. The proposed model was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the mediating effect of EMA on the relationship between the four antecedents and EDQ. Main Findings: The findings indicate that stakeholder pressure, managerial awareness, corporate culture, and environmental regulations have positive and significant impacts on EMA adoption. Moreover, EMA exerts a significant positive effect on EDQ and mediates the relationships between these antecedents and EDQ. Among the antecedents, environmental regulations show the strongest influence, emphasizing the role of legal enforcement in promoting EMA adoption for compliance and legitimacy. Practical/managerial implications: The study provides valuable insights for policymakers, regulators, and manufacturing enterprises in enhancing sustainability-oriented accounting and reporting systems. Strengthening environmental regulations, fostering managerial awareness, and cultivating a learning-oriented corporate culture can improve environmental accountability, transparency, and compliance in manufacturing firms.