The Impact of Environmental Accounting on Financial Decisions in Governmental Organizations
Keywords:
Environmental accounting, financial decisions, governmental organization, factor analysis, regressionAbstract
This study aimed to identify and analyze how the key components of environmental accounting—including the identification and recording of environmental costs, environmental information reporting and transparency, and monitoring and evaluating environmental performance—affect the financial decision-making process. This research is applied in terms of its objective and descriptive-survey in nature, employing a quantitative approach. The statistical population consisted of 145 financial experts and accountants at the Department of Environment in Khorasan Razavi Province. Using the Morgan Table, 106 individuals were randomly selected through simple random sampling. Data were collected using a researcher-made questionnaire, developed based on a review of scientific literature, and comprised two sections: demographic information and 30 items measured on a five-point Likert scale. The questionnaire assessed two main variables—environmental accounting and financial decisions—across six components. Content validity was confirmed by subject matter experts, and reliability was verified through a pilot test and Cronbach's alpha coefficient (0.87). Data were analyzed using SPSS, with confirmatory factor analysis and multiple regression employed to examine the relationships between variables. In the analysis of variance, the identification and recording of environmental costs had the greatest impact (variance = 0.0944), followed by environmental information reporting and transparency (variance = 0.0855), and monitoring and evaluating environmental performance (variance = 0.0860). In the regression model, the identification and recording of environmental costs had a significant effect on financial decisions (β = 0.35, p = 0.001), as did environmental information reporting and transparency (β = 0.22, p = 0.032), while monitoring and evaluating environmental performance had a weaker effect (β = 0.18, p = 0.053). Strengthening environmental accounting processes—particularly in the areas of cost identification and information transparency—can enhance financial decision-making in the public sector and lay the groundwork for sustainable development planning.
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