Accountants’ Professional Development and Investment Efficiency in Knowledge-Based Firms: The Mediating Role of Sustainability Reporting Quality
Keywords:
Accountants’ professional development, Sustainability reporting quality, Investment efficiency, Knowledge-based firms, PLS-SEM, Human capitalAbstract
Objective: This study aimed to examine the effect of accountants’ professional development on investment efficiency in knowledge-based firms and to explain the mediating role of sustainability reporting quality in this relationship.
Methodology: This applied quantitative study employed a survey research design. The statistical population consisted of senior accountants, financial managers, and sustainability reporting officers working in knowledge-based firms located in Khorasan Science and Technology Park, Iran. A total of 230 participants were selected using convenience sampling. Data were collected through a structured questionnaire containing 17 items measuring accountants’ professional development, sustainability reporting quality, and corporate investment efficiency. Convergent and discriminant validity were confirmed using AVE, Fornell–Larcker, and HTMT criteria, while reliability was supported through Cronbach’s alpha and composite reliability coefficients. Data analysis was conducted using SPSS and SmartPLS software based on partial least squares structural equation modeling (PLS-SEM).
Findings: The findings revealed that accountants’ professional development had a positive and significant effect on corporate investment efficiency (β=0.323, t=5.188, p<0.001). Accountants’ professional development also positively and significantly influenced sustainability reporting quality (β=0.549, t=12.392, p<0.001). Furthermore, sustainability reporting quality had a positive and significant effect on investment efficiency (β=0.337, t=5.738, p<0.001). Mediation analysis indicated that the indirect effect of accountants’ professional development on investment efficiency through sustainability reporting quality was significant (β=0.185, t=5.094, p<0.001). The VAF value of 36.41% demonstrated partial mediation of sustainability reporting quality in the relationship between accountants’ professional development and investment efficiency.
Conclusion: The results demonstrate that accountants’ professional development can enhance investment efficiency in knowledge-based firms through improving sustainability reporting quality. The findings highlight the importance of accounting human capital, continuous professional education, and sustainability-related competencies, indicating that high-quality sustainability information serves as an important informational mechanism supporting efficient investment decision-making.
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Copyright (c) 2025 Sadegh Ghodrati, Amir Ghafourian Shagerdi (Author)
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