International Journal of Business Management and Administration Vol. 3(3), pp. 048-054, December 2014 ISSN 2327-3100 ©2014 Academe Research Journals

Full Length Research Paper

Disclosures based on sustainability reporting in case of companies listed in Tehran Stock Exchange

Ali Khozein*, Ghodratolah Talebnia, Mansour Garkaz and Bahman Banimahd

Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran.

*Corresponding author. E-mail: khozain@yahoo.com.

Accepted 4 July, 2014

Abstract

Because sustainable reporting as a competitive advantage is not yet well understood, in this paper, we want to measure disclosures based on sustainability reporting for companies listed in Tehran Stock Exchange. Sustainable accounting is required to pay attention to organization performance from different views such as economic, social and environmental, and internal and external organization matter for the present and future. Principles of sustainability reporting is an approach which emphasize on creating long-term value for shareholders, taking into account the future potential opportunities and risk management in the economic, social and environmental aspect. It found that the overall level of disclosure based on sustainability reporting for companies listed in Tehran Stock Exchange is at a low level; it also observed a positive increment in trend of such disclosures over the seven years. From 2007 to 2013 growth rate of average level of disclosure is about 26%. Based on the growth rate, it can expect higher level of disclosure in future. It also requires changes in accounting standards and reporting requirements for considering the requirements of sustainability reporting in Iran.

Key words: Disclosures, sustainable reporting, stakeholder theory, environment.