relationship between environmental management and financial performance

Subject Areas : title1

saleh shahabi ¹ , babak jamshidi navid ² , mehrdad ghanbari ³

1 - Department of accounting, kermanshah branch, Islamic Azad University ,Kermanshah , iran
2 - Assistant professor, Department of accounting, kermanshah branch, Islamic Azad University ,Kermanshah , iran
3 - Assistant professor, Department of accounting, kermanshah branch, Islamic Azad University ,Kermanshah , iran

Received: 2021-12-30 Accepted : 2022-01-26 Published : 2021-11-22

Keywords: Financial Performance, Environmental Management, Environmental costs,

Abstract :

Objective: As societies develop, corporates responsibility towards society and the environment has become more and more important. The purpose of this study is to investigate the relationship between environmental management and financial performance of South Pars Assaluyeh companies.Methodology: The method of this research is descriptive-correlational and applied from the perspective of purpose. The statistical population includes 500 people from all managers, deputies and financial experts of South Pars Assaluyeh companies, which is done from 217 surveys using Cochran's formula method. The research tools in this research included the standard questionnaire of environmental management (Shaomia; 2016) and the standard questionnaire of financial performance (Azizi, 2011).Results: The validity of the questionnaires was based on the views of experts and Bartlett test. The reliability of the questionnaires was evaluated and calculated based on Cronbach's alpha coefficient for the environmental questionnaire of 0.789 and the financial performance questionnaire of 0.836, which indicates the optimal reliability of the research questionnaire. In this research, to test the research hypotheses, the structural equation modeling method is used by Smart PLS software. All research hypotheses were confirmed at 95 % confidence level.Conciusion: The results of this study showed that environmental management has a positive and significant effect on the financial performance of South Pars Assaluyeh companies. These results showed that managers in the industry respect the notion of mutual winning in the range of environmental costs and also they consider managering environmental costs as a factor to increase financial performance.