The Impact of Sustainability Accounting on Corporate Financial Performance, Evidence from Oil and Gas Company Sector in Egypt

Abstract

This research is aimed to examine the effect of Sustainability accounting to corporate financial performance. Three material aspects reported in the Sustainability accounting such as economic performance information(ECO), environmental performance information (EN), and social performance information (SCO) are used as the independent variables in this research and the dependent variable is the corporate financial performance which is proxied by using sales growth. This research was conducted using mainstream positivistic quantitative methods to test the two formulated hypotheses. the questionnaire was designed and distributed to a sample of top management, cost accountants, managerial accountants, financial accountants, financial analysts, general employee Belongs to oil and gas companies in Egypt that interest to sustainability reports using GRI-G4 guidelines. This standard is the latest edition issued by the Global Reporting Initiative (GRI), which can be applied starting from 2018. The results presented that economics, environmental, and social aspects have a positive significant effect on corporate financial performance. And the two control variables (top management support and innovation) have a positive significant effect on the relationship between sustainability accounting and corporate financial performance. The practical implication of this research that, the oil and gas company must know the value of social, economics, and environmental report in sustainability accounting. Stakeholders become interested in such reporting, and they judge to give “value good image”. A good image is what helps enhance the financial performance of the company.