Accounting Theory and Its Impact on Adoption of Sustainability Reporting Dimensions - A Field Study

Abstract

The main objective of the study was to identify the effect of the adoption of accounting theories (agency theory, signaling theory, theory of legitimacy, stockholders theory) in the disclosure of sustainability dimensions (economic dimension, environmental dimension, social dimension). To achieve the objective of the study, the sample of the study included Jordanian public shareholding companies which belong to the financial, industrial and service sectors. The study sample consisted of 20 public shareholding companies distributed among various sectors.

The study found out that is a statistically significant effect on the adoption of accounting theories in the disclosure of sustainability dimensions when studying the dimensions combined. The study recommended the need to increasing the commitment of public shareholding companies to apply the principle of transparency and disclosure of their environmental, social and economic activities, as well as recommending the management of public shareholding companies to the necessity of diversity in the interests of all parties associated with them.