Operational and Performance Research in Accounting and Auditing

Operational and Performance Research in Accounting and Auditing

The Relationship Between Environmental Performance Changes and Corporate Financial Distress: Evidence on the Role of Regulatory and Managerial Factors

Document Type : Original Article

Authors
najmeh hajian 1
sadaf sakhaee tabar 2
1 Assistant Professor, Faculty of Management and Finance , khatam University, Tehran , Iran.
2 .Faculty of Management and Finance, khatam University, Tehran , Iran
Abstract
The environmental performance of companies is known as one of the factors influencing financial stability and reducing financial helplessness. This research aims to investigate the relationship between the performance of environmental changes and financial helplessness of companies, and has analyzed the moderating role of legal claims risk, auditor size, and audit fees. In this regard, the data of 130 companies admitted to the Tehran Stock Exchange during the period of 2015 to 2014 were examined, and the multiple regression method with panel data was used to test the hypotheses. The results showed that the performance of environmental changes has a negative and significant effect on the financial helplessness of the company. Also, litigation risk weakens the effect of environmental change performance on financial distress. In addition, the size of the auditor and the audit fee also had a moderating role and were able to weaken the negative effects of environmental change performance on financial distress. These findings can be useful for managers, investors, and regulatory bodies in order to improve decisions and policies.
Keywords
' Environmental change performance
financial distress
litigation risk
auditor size
audit fees'
Operational and Performance Research in Accounting and Auditing
Volume 6, Issue 1
Spring 2026
Pages 1-19