An Investigation on the Impact of Sustainability Accounting on the Financial Health of Companies

Document Type : Original Article

Authors

1 Department of Accounting, Hazrat_e Masoumeh University (HMU), Qom, Iran.

2 Department of Management, Islamic Azad University Sanandaj Branch, Sanandaj, Iran

Abstract

Financial health has a significant impact on business continuity. Factors affecting financial health are crucial for all companies. Nowadays, in addition to economic factors, social and environmental factors influence the financial health of companies. Therefore, this research aims to investigate the effects of sustainability accounting components on the financial health of manufacturing companies. In terms of aim, the current research was applied. In terms of data collection, the present study was descriptive-survey. The research data was collected through a questionnaire. The population of this study included senior accountants and financial managers of Iranian manufacturing companies. Data analysis was done using structural equation modeling and with the help of SPSS version 26 and SmartPLS version 3 software. The sample size was 172 accountants. According to the research findings, four components of sustainability accounting (i.e., accounting ethics awareness, voluntary accounting proactiveness, transparency accounting mindset, and corporate social responsibility report) affected financial health significantly. On the other hand, the component of human capital disclosure had no significant impact on financial health. In today's business environment, social and environmental issues have a key role in gaining competitive advantage. Therefore, companies should disclose information about their social and environmental performance. This would able them to improve their financial health by increasing sales.

Keywords

References

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Iranian Journal of Organizational psychology
Volume 1, Issue 2
June 2024
Pages 31-45

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