Proceedings of The 4th International Conference On Business, Management and Finance
The Impact Of Environmental Costs Dimensions On Financial Performance: Role Of Environmental Disclosure As A Mediator Of Iraqi Industrial Companies
Abbas Jumaah Al-Waeli , Zuriadah Ismail, Azam Abdelhakeem Khalid, and Raad Naser Hanoon
This study aims to Impact Environmental Costs Dimensions on Financial Performance: Role of Environmental Disclosure as a Mediator of Iraqi Industrial Companies. The data was collected from annual reports of 25 selected companies Iraqi stock exchange and oil sector from 2014 to 2018. The results show that environmental costs ( contingent costs and external social costs positively influence financial performance. while Contingent costs, social costs, hidden costs, and Image & relationship costs show a positive influence on environmental disclosure. Whilst, finding revealed that environmental disclosure was positively significant in affecting financial performance. It was found that environmental disclosure was fully mediated the relationship between environmental costs (hidden costs and Image & relationship costs) and financial performance. Environmental disclosure partially mediated the relationship between environmental costs (Contingent costs, and social costs) and financial performance. There is no Mediation for environmental disclosure of the impact between Conventional costs and financial performance. It was also found that environmental disclosure mediated the impact between environmental costs (Conventional costs, Image & relationship costs, and External social costs), and financial performance. This indicates advantages for companies that produce less moderate environmental disclosure and enables them to gain investors’ confidence. This study’s implications provide insights into the implementation of the measurement of environmental costs and environmental disclosure in Iraq.
keywords: Environmental Costs, Financial Performance, Environmental Disclosure, and Iraqi Industrial Companies.