ABSTRACT
The influence of enviromnental issues on financial performance has been a heavily discussed topic for many years (EIRIS 1989; Feldman et al. 1997; Gupta et al. 1996; Klassen and McLaughlin 1996; Li and Mcconomy 1999; McGuire 1981; Schaltegger and Figge 1997; Spicer 1978) . In the previous chapter it was argued that consideration of environ mental issues in existing accounting standards would be of benefit, both for the economy and for the environment, as it would improve transparency and accountability about the consequences of corporate activities for investors, management and other stakeholders . Greater transparency makes it easier to anticipate future economic and environmental impacts and directs attention to the need for improved allocation of scarce financial resources.
