A Proposed Model for the Factors Affecting the Implementation of Environmental Activities Costs: An Empirical Study on Saudi Companies

Abstract

Purpose: This study proposes a model to examine the impact of sales volume categories, employee number categories, sector, and region on the implementation of environmental activity costs among Saudi companies.
Study design/methodology/approach: The study employs a survey design and ap-plies multiple regression analysis to examine the relationships among the variables.
Sample and data: Responses were collected from administrative and financial executives of 90 Saudi manufacturing companies.
Results: The findings indicate a statistically significant positive effect of sales volume categories, region, and employee number categories on the implementation of environmental activity costs and external failure costs.
Originality/value: This study provides new insights into the factors influencing the implementation of environmental activity costs in the Arab context. It contributes to the literature on environmental accounting and corporate sustainability by offering a structured analysis of key determinants.
Research limitations/implications: The study relied on a quantitative approach to measure the variables, which may limit the depth of insight into certain qualitative aspects. Future research could incorporate qualitative methods to provide a more comprehensive understanding of the factors affecting environmental activities' costs.