The Firm Management Structure, Environmental Auditing and Financial Reporting Quality

Environmental accounting is based on concepts, criteria and environmental and economic values. Environmental performance will lead to improved corporate financial performance. Thus environmental auditing is essentially an environmental management tool for measuring the effects of certain activities on the environment against set criteria or standards which will help improve the quality of financial reporting. Environmental auditing is used to help improve existing human activities, with the aim of reducing the adverse effects of these activities on the environment.
Accordingly, this article seeks to investigate the effect of firm management structure on relationship between environmental auditing and financial reporting quality. In this research, 175 companies listed in Tehran Stock Exchange during the period of 1999-2015 were investigated. In order to test the hypotheses, statistical analyzes using panel data were used using Eviews softwares and linear regression model. Research findings show that, firm management structure has an impact on relationship between environmental auditing and financial reporting quality.