Accounting Practices and Sustainable Development in Iraqi Industrial Companies: The Moderating Role of Accounting Information Systems

Abstract

The significance of this study lies in its contribution to the existing literature by investigating the moderating role of Accounting Information Systems (AIS) in the relationship between Financial Performance (FP) and Sustainable Development (SD). Specifically, the study examines the direct and indirect effects of accounting disclosure, accounting measurement, and FP on SD, while incorporating AIS as a moderating variable. A stratified random sampling technique was employed to select participants from 14 Iraqi industrial companies listed on the Iraqi financial market in 2024. The final sample comprised 253 employees working in finance, accounting, and AIS-related functions. Data were collected using a 16-item questionnaire covering five dimensions: FP, accounting measurement, and accounting disclosure as independent variables; AIS as the moderating variable; and SD as the dependent variable. The resulting data were analysed through structural equation modelling using partial least squares in SmartPLS 4. Following the assessment of the measurement and structural models and hypothesis testing, the findings demonstrated that AIS, accounting disclosure, and FP exerted positive and direct effects on SD, whereas accounting measurement did not have a positive and direct effect. Regarding the interaction effects, AIS did not produce positive and direct moderating effects on the relationships of accounting disclosure, accounting measurement, and FP with SD. By clarifying the moderating role of AIS in the FP–SD relationship and further examining the association between FP and SD, this study extends the existing knowledge in this field.