Green Accounting and Sustainable Corporate Performance: Environmental Performance as a Moderating Variable
DOI:
https://doi.org/10.17509/jaset.v16i2.71239Keywords:
Green Accounting, Sustainable Corporate Performance, Environmental Costs, Environmental PerformanceAbstract
This study aims to investigate whether sustainable corporate
performance is influenced by green accounting practice and
analyze environmental performance position as a
moderating variable in this relationship. Cross-sectional
time-series analysis together with random effects regression
model was deployed for data analysis. The findings indicate
that green accounting, proxied by environmental costs,
negatively affects sustainable corporate performance,
where greater efficiency in environmental cost components
for green accounting activities positively impacts sustainable
corporate performance (ROE). However, not significant
moderation effect of environmental performance observes
in the relationship betwixt green accounting and sustainable
corporate performance. Companies that increase
environmental costs to enhance compliance and achieve
higher PROPER ratings experience a decline in ROE.
Theoretically, vision given from this study regarding the
importance of environmental cost efficiency in green
accounting practices to support sustainable corporate
performance. Practically, it suggests that companies should
integrate environmental aspects comprehensively into their
business strategies and effectively implement sustainable
practices to achieve optimal corporate performance.
Compared to previous research, this research uses
environmental performance as a moderating variable, which
has not been previously explored in the relationship betwixt
green accounting and sustainable corporate performance
and this become novelty of this research.
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