The effect of financial efficiency and economic efficiency on the environmental costs
Subject Areas : Environmental pollutions (water, soil and air)Mojtaba Bahari 1 , simin ghaderi 2 *
1 - Master's student in Environmental Economics, Faculty of Management and Human Sciences, Chabahar University of Maritime and Marine Sciences, Chabahar, Iran.
2 - Assistant Professor, Department of Economics, Faculty of Management and Human Sciences, Chabahar University of Maritime and Marine Sciences, Chabahar, Iran. *(Corresponding Author)
Keywords: financial efficiency, economic efficiency, environmental costs. ,
Abstract :
Background and Objective: Since environmental costs are considered as a major crisis in the financial and economic performance of listed companies, often these costs have been ignored by managers, because the information provided by the traditional accounting system in this The background was generally incomplete, incomprehensible. In other words, with the increase of financial development, economic development, the cost of environmental destruction is increasing. On the other hand, environmental accounting equips the organization with a tool that revises the traditional accounting system and modifies it in such a way that it can provide relevant information. To process the environmental costs and report them in a suitable way and make them available to the managers. Due to the importance of environmental costs, they can be considered as a part of the cost of products or services of business units. In recent years, more attention has been paid to environmental issues in Iran and many laws have been passed in this regard.
Material and Methodology: According to the mentioned materials, this study examines the effect of financial and economic efficiency variables on the environmental costs of active companies admitted to the Tehran Stock Exchange, during the period of 2018-1400. The statistical population of this research is a number of active companies selected in the Tehran Stock Exchange. In the following, to perform statistical estimation, from unit root tests to check the reliability, KAO tests were used to check the collinearity and fully modified ordinary least squares (FMOLS) methods were used to estimate the desired model in Eviews 10 software.
Findings: The findings of the research indicate the negative effect of the independent variables of financial return (LROA), economic return (LROR) and debt ratio (LDR) on environmental costs (dependent variable) in selected active companies accepted in the Tehran Stock Exchange. While the independent variable of board size had a positive effect on the environmental costs of selected stock exchange companies.
Discussion and Conclusion: Considering the aggravation of environmental issues in the world and considering that achieving goals such as reducing environmental costs, increasing income and improving environmental performance requires attention to current, future and potential environmental costs, manufacturing companies should assume the responsibility of compensating environmental costs. and report them efficiently in their financial statements According to the results of the research, it is suggested to increase the awareness of the employees of the manufacturing companies through the holding of environmental protection training classes by the relevant managers, in order to reduce the pollution and finally reduce the environmental costs caused by the production activities, as well as to apply strict environmental laws and regulations for the companies. Productivity and consider rewards for companies that use emerging green technologies to reduce their environmental costs
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