International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

The relationship between strategic management accounting and governance, social and environmental aspects of sustainable development reporting

Document Type : Review paper

Authors
Arina mostafa faraj 1
omid mahmoodi khoshroo 2
behzad parvizi 2
adel fatemi 3
1 PhD student, accounting field, science and research department, Islamic Azad University, Tehran, Iran
2 Assistant Professor, Department of Accounting, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
3 Associate Professor, Department of Statistics, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
10.22034/ijfma.2025.78173.2216
Abstract
The expectations of different stakeholders from companies are changing. The information requested by them is no longer only profit and financial issues. They seek sustainable development. Therefore, the accounting responsibility of management has changed in companies. The purpose of this research is to determine the relationship between strategic management accounting and the governance, social and environmental dimensions of sustainable development reporting and also to determine the importance of each of the governance, social and environmental dimensions in strategic management accounting in Iraqi manufacturing companies. The research has 4 hypotheses, for the analysis of the first to third hypothesis, a 5-option questionnaire was used, and for the analysis of the fourth hypothesis, a ranking analysis process questionnaire was used. The findings showed that (1) strategic management accounting has a positive and significant relationship with sustainable development reporting. (2) Strategic management accounting has a positive and significant relationship with sustainable development reporting. (3) Strategic management accounting has a positive and significant relationship with sustainable development reporting. (4) The importance of each component of sustainable development reporting in management accounting is different. From the point of view of 20 experts, the governance dimension was introduced as the most important dimension of sustainable development reporting in management accounting. Planners, legislators and executives should strive to develop governance, social and environmental aspects of sustainable development reporting and management accountants should help them in this field.
  • Abdullah, N. H. N., Agus, H., & Said, J. (2020). The role of strategic management accounting on heterogeneity of human capital, information technology capabilities and value creation. International Journal of Innovation, Creativity and Change, 10(11), 652–673.
  • Alsharari, N.M. (2024), "The interplay of strategic management accounting, business strategy and organizational change: as influenced by a configurational theory", Journal of Accounting & Organizational Change, Vol. 20 No. 1, pp. 153-176.
  • Belverd E. N., Susan, V. C., (2011),"Managerial accounting principle", Ninth edition, Cengage Learning Publisher.
  • Egbunike, Francis Chinedu, Ogbodo, Okenwa C.Y., Onyali, Chidiebele Innocent, (2014), Utilizing Strategic Management Accounting Techniques (SMATs) for Sustainability Performance Measurement, Research Journal of Finance and Accounting, Vol 5, No 13, pp. 140-153.
  • Gupta, A, K., Gupta, N. (2020). Effect of corporate environmental sustainability on dimensions of firm performance – Towards sustainable development: Evidence from India. Journal of Cleaner Production. 235(2020): 119948
  • Hadid, W., & Al-Sayed, M. (2021). Management accountants and strategic management accounting: The role of organizational culture and information systems. Management Accounting Research, 50, 100725.‏
  • Jafari, B. , Khirolahi, F. , chavoshani, M. and feizjavadian, H. (2024). Investigating the relationship between strategic management accounting and strategic environmental performance by considering the effects of environmental strategies. Journal of Management Accounting and Auditing Knowledge, 14(53), 187-200.
  • Johnstone, L., Yates, D. and Nylander, S. (2023), "Taking shape within the structural and the personal: sustainability accountability within a Swedish public sector organisation", Sustainability Accounting, Management and Policy Journal, Vol. 14 No. 7, pp. 287-312.
  • khalilpour, M. , ramazani, J. , ebrahimian, J. , fallah, A. and kordani, H. (2025). Development of Strategic Management Accounting by Using Accounting Information Systems in the Face of Environmental Drivers. Journal of Management Accounting and Auditing Knowledge, 14(55), 193-207.
  • Khouloud. Farzaa, Zied. Ftitib, Zaineb. Hliouia, Waël. Louhichic, Abdel. Wahed. Omria, (2021) , The environmental innovation effect on corporate financial performance, Journal of Environmental Management, Volume 300, 15 December, 113695.
  • Meng, J., Zhang, Z., (2022), Corporate environmental information disclosure and investor response: Evidence from China's capital market, Energy Economics, Vol., 108.
  • Mercia Group, (2022), Introducing the Future of Sustainability Accounting: ESG, 17 August 2022 13:36, available at https://www.mercia-group.com/mercia-news-and-blog/sustainability-accounting-esg/.
  • Nik Herda Nik Abdullah, Shamala Krishnan, Azliza Azrah Mohd Zakaria & Grace Morris | (2022) Strategic management accounting practices in business: A systematic review of the literature and future research directions, Cogent Business & Management, 9:1, 2093488.
  • Ojra, J., Opute, P., A., Alsolmi, M., M., (2021), Strategic management accounting and performance implications: a literature review and research agenda, Future Business Journal, Vol. 7, N. 1: 64, pp. 1-17.
  • Worakorn Pumiviset & Muttanachai Suttipun (2024) Sustainability and strategic management accounting: evidence of green manufacturing in Thailand, Cogent Business & Management, 11:1, 2302794, DOI: 10.1080/23311975.2024.230279.
  • Islam, M., Slof, J. and Albitar, K. (2023), "The mediation effect of audit committee quality and internal audit function quality on the firm size–financial reporting quality nexus", Journal of Applied Accounting Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JAAR-06-2022-0153.
  • Erin, O. and Adegboye, A. (2022), "Do corporate attributes impact integrated reporting quality? An empirical evidence", Journal of Financial Reporting and Accounting, Vol. 20 No. 3/4, pp. 416-445.
  • Nurunnabi, M. (2021), "Disclosure, Transparency, and International Financial Reporting Standards", International Financial Reporting Standards Implementation: A Global Experience (Contributions to International Accounting), Emerald Publishing Limited, Bingley, pp. 199-311.