Unveiling the black box of green accounting information disclosure: an analysis of disclosure diversity and difficulties from a developing economy perspective

This paper aims to analyse the quality of green accounting disclosure and provide insight into the perceptions of corporate insiders and academics about the challenges that impede green accounting information disclosures in an emerging economy, India. Content analysis was used to evaluate the degree of disclosure of green accounting data in yearly reports. Ten prominent managers and academics (subject experts) participated in partially structured interviews that aided in interpreting the difficulties associated with disclosing green accounting data. The results suggest that green accounting data disclosure is in its early stages in India. Companies focus more on disclosing environmental policies and responsibilities while ignoring environmental financial information. The significant challenges that obstruct the growth of green accounting statistics and data divulgence include the following: the absence of precise legal requirements about green accounting, inadequate green accounting and reporting theory, lack of knowledge, shortage of environmental accountants, unclear and conflicting job roles, cost concerns of the companies, deficiency of government-funded incentives and robust non-governmental organisations, and the fear of change. The research should be valuable for regulatory authorities because green accounting standards are currently developing, and it can aid company executives due to the cautious deliberation of revelations. This study employs a multidimensional index to assess the green accounting disclosure practices of top-ranking firms in the manufacturing division dealing in industrial equipment from both a quantitative and qualitative standpoint in the institutional theory framework. It documents how the challenges of green accounting disclosure may lead to explicative strategies by various actors, thereby contributing to shaping green accounting information disclosure norms.