Examining the Impact of Environmental Disclosure on Financial Performance: The Moderating Role of Corporate Governance

Authors

  • Maryam Hajiali * Department of Accounting, Electronic Branch, Islamic Azad University, Tehran, Iran. https://orcid.org/0009-0001-0966-6832
  • Mina Sheikhi Gorjan Department of Accounting, Yadegar-e-Imam Branch, Islamic Azad University, Rey, Iran.
  • Adel Shahvali Zadeh Department of Accounting, Ardabil Branch, Islamic Azad University, Ardabil, Iran.

https://doi.org/10.22105/tqfb.v2i4.73

Abstract

Assessing corporate performance plays a critical role in economic decision-making. The relationship between Environmental Disclosure (ED) and firm performance is a significant topic in accounting research. Firm performance is influenced by multiple factors, among which ED can have a substantial impact. Financial performance is consistently considered a key indicator for evaluating a company’s condition, and various factors can affect it. This study aims to examine the relationship among ED, financial performance, and Corporate Governance (CG) in 112 companies listed on the Tehran Stock Exchange (TSE) and Over-the-Counter market (OTC) between 2016 and 2023. A regression correlation method was employed to test the hypotheses. The results indicate that all proposed hypotheses are supported. Specifically, overall ED has a significant impact on firm performance, and CG positively and significantly moderates the relationship between ED and firm performance.

Keywords:

Environmental disclosure, Financial performance, Corporate governance, Companies listed on the tehran stock exchange and over-the-counter market

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Published

2025-10-02

Issue

Vol. 2 No. 4 (2025): Transactions on Quantitative Finance and Beyond

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Articles

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How to Cite

Hajiali, M., Sheikhi Gorjan, M., & Shahvali Zadeh, A. (2025). Examining the Impact of Environmental Disclosure on Financial Performance: The Moderating Role of Corporate Governance. Transactions on Quantitative Finance and Beyond, 2(4), 214-226. https://doi.org/10.22105/tqfb.v2i4.73
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