There is a growing volume of literature on sustainable development. But, the association between the quality of environmental accounting information and sustainable development is devoted particular attention, especially in developing countries as Iraq. The purpose of this research is, therefore, to assess the mediating role of the quality of financial statements in the impact of the quality of environmental accounting information on improving sustainable development. Our empirical evidence is conducted on Iraqi industrial listed firms during the period 2013-2023. This research was conducted to several results. First, the quality of environmental accounting information has a positive effect on the quality of financial Statements, which has a positive effect on sustainable development. Second, there is a positive and significant relationship between the quality of environmental accounting information and sustainable development. Third, the mediating role of the quality of financial statements in sustainable development is partial. These findings emphasize the strong pressure from stakeholders to pay attention to the quality of financial statements and verify that the financial statements are devoid of earnings management in order to improve sustainable development.
Ezzine Hanene, Shahla Al-Bazzaz, Chabchoub Mohamed* (Wed,) studied this question.