Investigating the impact of environmental, social and governance factors on the company's financial performance with the moderating role of audit quality
Subject Areas : Accounting & Accountability
1 - Department of Accounting, Neyriz Branch, Islamic Azad University, Neyriz, Iran.
Keywords: Audit quality, corporate governance, environmental factors, financial performance, social factors,
Abstract :
Purpose: The purpose of this research is to investigate the impact of environmental, social and governance factors on the company's financial performance with the role of moderating audit quality.
Methodology: This research is analytical-descriptive in nature, which examines the correlation between variables, and in terms of the time dimension, it is a type of ex-post research. The statistical population of the present study includes the companies listed on the Tehran Stock Exchange for the period of 2014 to 2022. 101 companies were selected as a research sample using the screening method and their financial statements for the period were examined. The collected data, based on the variables under investigation, was entered into EViews software. Ultimately, the research hypotheses were either confirmed or rejected using the results obtained from the relevant software.
Findings: The results of the hypothesis test indicate that environmental, social, and governance factors positively and significantly impact the financial performance of companies listed on the Tehran Stock Exchange, while audit quality moderates the influence of these factors on financial performance.
Originality: Based on the research findings, it’s recommended that to enhance their financial performance, while improving the environmental, social and governance indicators, companies should start disclosing this information and strive to provide accurate and quality reports.
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