Using Environmental Accounting Approach in Assessing Environmental Cost Accounting Impact on Financial Performance

Abstract—Environmental cost accounting is an arising perception, prompting this investigation into its theoretical framework and its effect on the financial performance of oil industries in the area. Utilizing secondary data spanning from 2020 to 2024, sourced from the annual reports of selected oil industries operating in the Kurdistan Region, this study employs STATA version 12 for regression analysis. Results suggest that environmental cost variables significantly influence the financial performance of these oil industries, as determined by return of asset. This study advocates for the consideration of environmental performance alongside other metrics in evaluating company performance, emphasizing the need for legislation mandating adherence to international environmental protection standards. Keywords—Environmental Cost Accounting, Oil Companies, Kurdistan Region.