IDEAS home Printed from https://ideas.repec.org/a/taf/accfor/v37y2013i2p110-123.html
   My bibliography  Save this article

Accounting for the environmental impacts of Texaco's operations in Ecuador: Chevron's contingent environmental liability disclosures

Author

Listed:
  • Stacie Buccina
  • Douglas Chene
  • Jeffrey Gramlich

Abstract

This paper examines the disclosure of a contingent legal obligation that arose as a result of Texaco Inc.’s oil drilling and extraction activities in Ecuador. We examine Texaco's and, after Texaco's acquisition by Chevron in 2001, Chevron's, financial reporting and SEC disclosures pertaining to a lawsuit claiming damages related to the environmental effects of Texaco's 30 years of operations in Ecuador. After an historical review of Texaco's drilling and extraction activities in Ecuador, and the ensuing litigation that began in 1993, we consider U.S. accounting and reporting rules as they apply to Texaco and Chevron. Given these rules, we analyze the appropriateness and timing of Chevron's disclosures related to the heretofore-unresolved litigation. The discussion employs legitimacy and stakeholder theories to explain Chevron's disclosures.

Suggested Citation

  • Stacie Buccina & Douglas Chene & Jeffrey Gramlich, 2013. "Accounting for the environmental impacts of Texaco's operations in Ecuador: Chevron's contingent environmental liability disclosures," Accounting Forum, Taylor & Francis Journals, vol. 37(2), pages 110-123, June.
    • Handle: RePEc:taf:accfor:v:37:y:2013:i:2:p:110-123
    DOI: 10.1016/j.accfor.2013.04.003
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1016/j.accfor.2013.04.003
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1016/j.accfor.2013.04.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sidney J. Gray & Niclas Hellman & Mariya N. Ivanova, 2019. "Extractive Industries Reporting: A Review of Accounting Challenges and the Research Literature," Abacus, Accounting Foundation, University of Sydney, vol. 55(1), pages 42-91, March.
    2. Belal, Ataur Rahman & Cooper, Stuart M. & Roberts, Robin W., 2013. "Vulnerable and exploitable: The need for organisational accountability and transparency in emerging and less developed economies," Accounting forum, Elsevier, vol. 37(2), pages 81-91.
    3. Juan Durango-Cordero & Mehdi Saqalli & Christophe Laplanche & Marine Locquet & Arnaud Elger, 2018. "Spatial Analysis of Accidental Oil Spills Using Heterogeneous Data: A Case Study from the North-Eastern Ecuadorian Amazon," Sustainability, MDPI, vol. 10(12), pages 1-13, December.
    4. Adams, Dawda & Ullah, Subhan & Akhtar, Pervaiz & Adams, Kweku & Saidi, Samir, 2019. "The role of country-level institutional factors in escaping the natural resource curse: Insights from Ghana," Resources Policy, Elsevier, vol. 61(C), pages 433-440.
    5. Karambu Kiende Gatimbu & Maurice Juma Ogada & Nancy Budambula & Samuel Kariuki, 2018. "Environmental sustainability and financial performance of the small‐scale tea processors in Kenya," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1765-1771, December.
    6. Alberto Diantini & Salvatore Eugenio Pappalardo & Tim Edwards Powers & Daniele Codato & Giuseppe Della Fera & Marco Heredia-R & Francesco Facchinelli & Edoardo Crescini & Massimo De Marchi, 2020. "Is this a Real Choice? Critical Exploration of the Social License to Operate in the Oil Extraction Context of the Ecuadorian Amazon," Sustainability, MDPI, vol. 12(20), pages 1-24, October.
    7. Icaza, Daniel & Borge-Diez, David & Galindo, Santiago Pulla, 2022. "Analysis and proposal of energy planning and renewable energy plans in South America: Case study of Ecuador," Renewable Energy, Elsevier, vol. 182(C), pages 314-342.
    8. Nelson OKUTU & Folajimi F. ADEGBIE, 2023. "Sustainability Reporting and Financial Performance of Oil and Gas Companies Listed in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(12), pages 1023-1041, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:accfor:v:37:y:2013:i:2:p:110-123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/racc .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.