M.A. Thesis:

The effect of Internal Control weakness, Financial Reporting Qualityon and Corporate Environmental Performance

Abstract Today, environmental protection has become one of the most important issues for customers, shareholders, governments and competitors. Meanwhile, global pressures have forced organizations to produce environmentally friendly products and services. Environmental performance not only works to strengthen social legitimacy, but also leads to competitive advantage. The purpose of this study is to investigate the relationship between the weakness of internal controls and the quality of financial reporting with the environmental performance of companies listed on the Tehran Stock Exchange. To achieve this goal, the information of 140 companies active in the Tehran Stock Exchange in a period of five years during the years 2015 to 2019 was collected and analyzed using Stata software. The research method is logit regression and panel data. Based on the results of research and statistical tests, it can be said that there is a negative and significant relationship between the weakness of internal controls and environmental performance. The results also showed that there is a positive and significant relationship between financial reporting quality and environmental performance. An organization's internal processes have a significant impact on its environmental performance. Weak internal controls lead to a weakening of companies' environmental performance. Due to the increasing quality of financial reporting, the company's attention to environmental issues to gain more trust and gain existing capital will increase and lead to improved environmental performance. Keywords: Weak internal controls, quality of financial reporting, environmental performance

Keywords: Keywords: Weak internal controls, quality of financial reporting, environmental performance