The Impact of Green Accounting on Enhancing Transparency and Financial Disclosure in Cement Manufacturing Companies
DOI:
https://doi.org/10.56956/qsfjb989Keywords:
green accounting, environmental management accounting, environmental financial accounting, financial transparency and disclosureAbstract
In this study examine the impact of green accounting (environmental management accounting and environmental financial accounting) on financial transparency and disclosure was investigated in the General Company for Cement Industry. The study was carried out at the company's cement plants in Babil, Karbala and Najaf governorates and the cement industry and the importance of transparent environmental and financial reporting were taken into consideration with a descriptive-analytical approach with a questionnaire administered through purposive sampling to 108 accountants, auditors, and financial management workers working at these cement plants and data collected through the company. The data were analyzed using (SPSS) with reliability testing to determine the internal consistency of the study instrument, descriptive analysis to assess the perceptions of the respondents towards the study variables, and simple linear regression to test the hypotheses. Green accounting has been shown to improve financial transparency and disclosure in the plants under study and environmental management accounting is a better mechanism for transparency than environmental financial accounting. This is reflective of the literature in green accounting and environmental disclosure, which finds that green accounting and environmental disclosure practices are associated with greater transparency and reporting quality and supports the notion that embedding environmental issues in management and control systems strengthens the credibility of disclosed financial information. Based on these findings, the study recommends strengthening the managerial dimension of environmental accounting within the organizational structure of the cement plants as this may further improve the quality of disclosed financial information and support more transparent reporting practices across the cement industry.
References
Alharasis, E. E., Marei, A., Almakhadmeh, A. A.-R., Abdullah, S., & Lutfi, A. (2024). An evaluation of financial statement quality in pre-versus post-IFRS-7 implementation: The case of Iraqi banking industry. Discover Sustainability, 5, 277. https://doi.org/10.1007/s43621-024-00487-w
Benkraiem, R., Bensaad, I., & Lakhal, F. (2022). How do International Financial Reporting Standards affect information asymmetry? The importance of the earnings quality channel. Journal of International Accounting, Auditing and Taxation, 46, 100445. https://doi.org/10.1016/j.intaccaudtax.2021.100445
Bidabad, B., Amirostovar, A., & Sherafati, M. (2017). Financial transparency, corporate governance and information disclosure of the entrepreneur’s corporation in Rastin banking. International Journal of Law and Management, 59(5), 636–651. https://doi.org/10.1108/IJLMA-01-2016-0003
Bisa, M. Z., & Supranata, M. (2026). Green accounting as a strategic tool for corporate sustainability and value creation: A systematic review. KINERJA: Jurnal Manajemen Organisasi dan Industri, 5(1), 11–21.
Bischof, J., Gassen, J., Rohlfing-Bastian, A., Rostam-Afschar, D., & Sureth-Sloane, C. (2024). Accounting for transparency: A framework and three applications in tax, managerial, and financial accounting. Schmalenbach Journal of Business Research, 76, 573–611. https://doi.org/10.1007/s41471-024-00200-7
Caronge, E., Nurzianti, R., Chan, R., Ashlah, I., & Teo, R. (2025). Green accounting and corporate disclosure: Enhancing ESG transparency in the digital age. Journal Markcount Finance, 3(2), 193–202. https://doi.org/10.70177/jmf.v3i2.2498
Cho, C. H., & Patten, D. M. (2007). The role of environmental disclosures as tools of legitimacy: A research note. Accounting, Organizations and Society, 32(7–8), 639–647.
de Beer, P., & Friend, F. (2006). Environmental accounting: A management tool for enhancing corporate environmental and economic performance. Ecological Economics, 58(3), 548–560. https://doi.org/10.1016/j.ecolecon.2005.07.026
Firdaus, A., Arifai, M., Mariana, M., Fahira, A., Silvia, I., Azaria, P. S., & Azzahra, R. (2024). Environmental disclosure in local government financial reports: A systematic literature review. Jurnal HEI EMA, 3(2), 153–163.
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman. https://books.google.iq/books/about/Strategic_Management.html?id=4PUJAQAAMAAJ&redir_esc=y.
Ghani, E. K., Jamal, J., Puspitasari, E., & Gunardi, A. (2018). Factors influencing integrated reporting practices among Malaysian public listed real property companies: A sustainable development effort. International Journal of Managerial and Financial Accounting, 10(2), 144–162. https://doi.org/10.1504/IJMFA.2018.091662
Gunawan, J. (2015). Corporate social and environmental reporting in Indonesia: A stakeholder perspective. Issues in Social and Environmental Accounting, 9(1), 1–17.
Hansen, D. R., & Mowen, M. M. (2007). Managerial accounting (8th ed.). Thomson South-Western.
International Accounting Standards Board. (2018). Conceptual framework for financial reporting. IFRS Foundation.
International Federation of Accountants. (2005). International guidance document: Environmental management accounting. IFAC.
Kalsum, U. (2021). Factors affecting the disclosure of corporate social responsibility. International Journal of Business Economics (IJBE(
Kolawole, J. S., Igbekoyi, O. E., Ogungbade, O. I., & Dagunduro, M. E. (2023). Environmental accounting practice and financial performance of listed aviation firms in Nigeria. Asian Journal of Economics, Business and Accounting, 23(13), 70–80.
Lako, A. (2018). Green accounting: Issues, theories, and applications. Salemba Four.
Oncioiu, I., Popescu, D.-M., Aviana, A. E., Șerban, A., Rotaru, F., Petrescu, M., & Marin-Pantelescu, A. (2020). The role of environmental, social, and governance disclosure in financial transparency. Sustainability, 12(17), 6757. https://doi.org/10.3390/su12176757
Purnamawati, I. G. A., Yuniarta, G. A., & Diatmika, I. P. G. (2018). Green accounting: A management strategy and corporate social responsibility implementation. International Journal of Community Service Learning, 2(3), 149–156.
Steele, A. P., & Powell, J. R. (2002). Environmental accounting: Applications for local authorities to quantify internal and external costs of alternative waste management strategies. Paper presented at the Environmental Management Accounting Network Europe, Fifth Annual Conference, Gloucestershire Business School
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–61
Tran, L. T. H. (2022). Reporting quality and financial leverage: Are qualitative characteristics or earnings quality more important? Evidence from an emerging bank-based economy. Research in International Business and Finance, 60, 101578. https://doi.org/10.1016/j.ribaf.2021.101578
Wie Yusuf, M., Jordan, M. M., Saitgalina, M., & Jones, P. A. (2023). Accessibility of state financial information: Analysis of state MD&A size, readability, and timeliness. Public Administration Quarterly, 47(4), 429–455. https://doi.org/10.37808/paq.47.4.2
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Amjad Ismail Ashour
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
