The manager’s decision in acknowledging and disclosing environmental liability: A Behavioral Model
Journal Title: Journal of Economics, Business, & Accountancy Ventura - Year 2016, Vol 19, Issue 2
Abstract
This study analyzes why managers accrue and disclose environmental liability, which involves managers’ discretions. Using the framework of the Theory of Planned Behavior (Ajzen 1991), this research hypothesizes that a manager’s intention to accrue and disclose environmental liability is influenced by: (1) attitudes (2) subjective norms, and (3) perceived behavioral control of the manager towards accruing and disclosing such information. The data was collected through a survey, employing a questionnaire modified from Weidman (2002). Responses from 50 corporate managers in Lampung Province were analyzed using structural equation model software package SmartPLS. This study finds that a manager’s attitude towards environmental liability is positively associated with his/her decision to accrue and disclose environmental liability. However, there is no evidence that subjective norms and behavioral control are associated with such a decision. An additional test using attitude as a moderating variable provides evidence that both subjective norms and perceived control behavior are positively associated with the attitude towards environmental liability.
Authors and Affiliations
Susi Sarumpaet
Keywords
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- EP ID EP469783
- DOI 10.14414/jebav.v19i2.481
- Views 63
- Downloads 0
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