04.1 - The Influence of Structural Attributes of Economic Entities on the Degree of Environmental Accounting Adoption: Evidence from Albanian Firms

• Florinda Zherri

  Agricultural University of Tirana

  Yazar

• Flutura Kalemi

  Agricultural University of Tirana

  Yazar

Environmental accounting has become increasingly important for firms worldwide, yet its adoption remains uneven, particularly in transition economies. This study examines how structural attributes—specifically firm size, industry sector, ownership type, and market orientation—influence environmental accounting adoption among Albanian companies. Drawing on institutional theory and stakeholder theory, we hypothesize that these structural characteristics shape firms' capacity and motivation to implement environmental accounting practices. Using survey data from 73 Albanian firms and ordinal logistic regression analysis, we find that firm size is the most significant predictor of environmental accounting adoption (p = 0.063), with larger firms demonstrating higher levels of implementation. Contrary to expectations, industry sector, ownership type, and market orientation do not show statistically significant effects in our sample. The model's explanatory power (pseudo-R² = 0.093) suggests that additional factors beyond structural attributes influence adoption decisions. These findings indicate that in Albania's institutional context, characterized by weak regulatory enforcement and limited stakeholder pressure, firm size—likely serving as a proxy for resource availability, managerial capacity, and legitimacy concerns—emerges as the primary driver of environmental accounting practices. The study contributes to understanding environmental accounting adoption in emerging economies and has implications for policymakers seeking to promote sustainability reporting in transition contexts.