Environmental Accounting and Financial Performance: Evidence from Oil Companies in China

The objective of this chapter is to investigate the relationship between environmental accounting and firm performance. To achieve this, the study analyses data from the financial and corporate social responsibility (CSR) reports of listed Chinese oil companies on the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) for the period 2015–2019. Utilizing regression analysis conducted using the Social Science Statistical Package (SPSS) and Stata, the findings reveal an absence of significant correlation between environmental accounting practices and firm performance. Furthermore, the analysis highlights a prevalent lack of disclosure of environmental information in annual reports by many companies. Based on these findings, the study recommends that the government mandate the disclosure of environmental costs to enhance transparency and accountability in environmental reporting. © 2025 selection and editorial matter, Tarek Rana, Md Jahidur Rahman and Peter Öhman; individual chapters, the contributors.