Stakeholder Integration and Financial Performance: The Mediating Role of Environmental Sustainability Orientation

Subject Areas : Journal of Investment Knowledge

Masoud Farahabady ¹ , Farzaneh Heidarpoor ² , Azita Jahanshad ³

1 - Department of Accounting, Kish International Branch, Islamic Azad University, Kish Island, Iran
2 - Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2020-12-19 Accepted : 2021-03-15 Published : 2021-09-23

Keywords: Financial Performance, Stakeholder integration, environmental sustainability orientation,

Abstract :

The purpose of this study was to study the impact of stakeholder integration and financial performance with respect to the mediating role of environmental sustainability orientation. The statistical sample consisted of 392 managers and experts of stock exchange companies who were selected using random sampling method. The type of research was applied research in terms of purpose and descriptive-survey research in terms of data collection with a description of structural equation modeling. Examining the results of the analysis, testing the hypotheses showed that stakeholder integration has an impact on financial performance with the mediating role of environmental sustainability orientation. Accordingly, stakeholder monitoring and participation in management behavior in the field of environmental sustainability orientation according to agency theory, in addition to improving economic performance due to better production and management strategies, including long-term benefits of environmental performance. Better yet, it will be like avoiding environmental commitments in the future.

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