Finances, accounting and audit

Social and environmental costs: the impact of accounting and analytical support on enterprises’ sustainable development in Germany and Ukraine

Economic Annals-XXI

Economic Annals-ХХI: Volume 181, Issue 1-2, Pages: 124-136

Citation information:
Sokil, O., Zvezdov, D., Zhuk, V., Kucherkova, S., & Sakhno, L. (2020). Social and environmental costs: the impact of accounting and analytical support on enterprises’ sustainable development in Germany and Ukraine. Economic Annals-XXI, 181(1-2), 124-136. doi: https://doi.org/10.21003/ea.V181-11

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Oleh Sokil
D.Sc. (Economics),
Associate Professor,
Head, Accounting and Taxation Department,
Dmytro Motornyi Tavria State Agrotechnological University
18 B. Khmelnytskyi Ave., Melitopol, 72310, Ukraine
oleh.sokil@tsatu.edu.ua
ORCID ID: https://orcid.org/0000-0002-3121-826X

Dimitar Zvezdov
D.Sc. (Economics),
Academic Councillor,
Research Associate,
Chair for Corporate Sustainability Management,
Friedrich-Alexander-Universitat Erlangen-Nurnberg
7/9 Findelgasse, Nurnberg, 90402, Germany
dimitar.zvezdov@fau.de
ORCID ID: https://orcid.org/0000-0002-7847-1158

Valerii Zhuk
D.Sc. (Economics),
Professor,
National Scientific Centre «Institute of Agrarian Economics»
10 Heroiiv Oborony Str., Kyiv, 03127, Ukraine
zhuk@faaf.org.ua
ORCID ID: https://orcid.org/0000-0003-1367-5333

Svitlana Kucherkova
PhD (Economics),
Associate Professor,
Accounting and Taxation Department,
Dmytro Motornyi Tavria State Agrotechnological University
18 B. Khmelnytskyi Ave., Melitopol, 72310, Ukraine
kucherkovas@gmail.com
ORCID ID: https://orcid.org/0000-0002-1953-063X

Liudmyla Sakhno
PhD (Economics),
Associate Professor,
Accounting and Taxation Department,
Dmytro Motornyi Tavria State Agrotechnological University
18 B. Khmelnytskyi Ave., Melitopol, 72310, Ukraine
sakhnolyudmila5@ukr.net
ORCID ID: https://orcid.org/0000-0003-0339-3404

Social and environmental costs: the impact of accounting and analytical support on enterprises’ sustainable development in Germany and Ukraine

Abstract. The authors investigate the theoretical and methodological ability of the accounting institute to solve the problem of information support for the implementation of the national (global) sustainable development policy. This ability is demonstrated by using methods of accounting and analytical support and mathematical analysis of the quadratic correlation and regression dependence of the added value of enterprises from the value of social and environmental costs. All studies were conducted separately for micro, small, medium and large enterprises in Ukraine and Germany (2011-2019).

The results are designed using the U-shaped curve which demonstrates a direct relationship between environmental costs and the added value of the company for Ukrainian enterprises and indirect one for micro and large enterprises in Germany. Social expenses show a significant inverse U-shaped relationship with the value of the company in Ukraine, but large German enterprises fall out of this list and patterns.

The ability of integrated reporting to mitigate the imbalance between the added value of the enterprise (enterprise value) and social/environmental costs has been proven. It is determined that the formation and presentation of integrated reporting should be the prerogative of not only large enterprises, but also medium and small ones, and it will ultimately lead to the sustainable development of the region, industry, and country.

Keywords: Integrated Reporting; Social/Environmental Costs; Firm Value Added; Quadratic Correlation and Regression Analysis; Sustainable Development; Germany; Ukraine

JEL Classification: Q01; M41; Q56; C3

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V181-11

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Received 16.01.2020
Received in revised form 20.01.2020
Accepted 22.01.2020
Available online 10.02.2020

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