The impact of Environmental Accounting on Financial Performance: Evidence from Oil Companies in IRAQ

Naji Afrasyaw Fatah; Hawkar Anwer Hamad

doi:10.25212/lfu.qzj.7.4.45

Authors

Naji Afrasyaw Fatah Public Relations and marketing, College of Administration, Sulaimani Polytechnic University, Sulaymaniyah, Iraq
Hawkar Anwer Hamad Accounting and Finance, College of Administration and Economics, Lebanese French University, Erbil, Iraq

DOI:

https://doi.org/10.25212/lfu.qzj.7.4.45

Keywords:

Environmental Accounting, Environmental Costs, Financial Performance, Oil Companies and Environmental pollution.

Abstract

Environmental Accounting is an emerging concept in Iraq. Therefore, this study examines the theoretical framework for the concept and aimed to investigate the impact of environmental cost accounting on the financial performance of oil companies in Iraq. The research used only secondary data over a ten-year period (2010-2020). The time-series data were collected from the financial statements of selected oil companies that are operating in Iraq under licences granted by the Ministry of Oil in Baghdad. The statistical tool used for data analysis is the EViews version 10. and analyzed using regression analysis. The statistical analysis results indicate that the three environmental cost variables have an impact on the financial performance of oil companies which was measured by ROA. The study recommended that the environmental performance of the firms should be considered one of the important axes in evaluating their performance. Thus, work to issue laws, regulations and instructions that require firms to abide by international standards related to the protection of the environment and society from pollution.

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