The Influence of Corporate Social Responsibility in Mediating Relationships Green Accounting on Financial Performance
DOI:
https://doi.org/10.37385/msej.v4i5.2913Keywords:
environmental performance; environmental cost; CSR; firm performanceAbstract
Improving financial performance is the main goal of every company. However, the company's operations are always related to the depletion of natural resources, which causes environmental damage. Green accounting efforts are made to preserve the environment. This study aims to determine the effect of CSR disclosure in mediating green accounting (environmental performance and environmental costs) on financial performance. The research sample consisted of 85 observations of non-financial sector companies listed on the Indonesian stock exchange and participating in the Ministry of Environment's PROPER for the 2019-2021 period by purposive sampling. SEM PLS path regression was used to test the direct and indirect effects of 7 hypotheses using the SmartPLS 4.0 statistical tool. research results show evidence that environmental performance has a significant positive effect on financial performance; Environmental cost has a significant positive effect on company performance; environmental performance has no significant effect on CSR disclosure; Environmental cost has no significant effect on CSR disclosure; Disclosure of CSR has a significant positive effect on financial performance; CSR is not able to mediate green accounting on financial performance. The research findings show that environmental performance, environmental costs, and CSR disclosure on company websites have an effect on improving financial performance. So companies need to consider making decisions about disclosing these items on the company's website in an effort to improve financial performance and a positive image in society.
References
Akmarina, Ira Nur, and Azib. (2018). The Influence of Environmental Performance on Financial Performance with Corporate Social Responsibility (Csr) as an Intervening Variable. Management Proceedings 4(1):245–51.
Angela, and Fransisca Ninik Yudianti. (2015). The effect of environmental performance on financial performance by disclosing corporate social responsibility as an intervening variable." Journal of Economics, Sanata Dharma University 1–26.
Branco, Manuel Castelo, and Lúcia Lima Rodrigues. (2006). Communication of corporate social responsibility by Portuguese banks: A legitimacy theory perspective. Corporate Communications 11(3):232–48. doi: 10.1108/13563280610680821.
Buana, Vieni Angelita, and Nila Firdausi Nuzula. (2017). The Effect of Environmental Costs on Profitability and Company Value (Study of First Section Chemical Companies Registered on the Japan Exchange Group Period 2013 - 2015). Journal of Business Administration (JAB) 50(1):46–55.
Damanik, I. Gusti Agung Bagus, and I. Ketut Yadnyana. (2017). The Influence of Environmental Performance on Financial Performance by Disclosure of Corporate Social Responsibility as an Intervening Variable. Udayana University Accounting E-Journal 20(1):645–73.
Garhadi, GY, R. Lestari, and Y. Rosdiana. (2018). The Influence of Environmental Performance on Corporate Social Responsibility (CSR) Disclosure in Consumer Goods Manufacturing Companies Registered at Accounting Proceedings Vol.4(No.2):570–74.
Habib Siregar, Farhan, and Zuwina Miraza. (2022). Environmental Performance, Environmental Costs and Company Size on Financial Performance with Corporate Social Responsibility as Intervening Variables. Journal of Economics, Management, Accounting, Digital Business and Entrepreneurship 1(Number 2):187–205.
Meiyana, Aida, and Mimin Nur Aisyah. (2019). The Influence of Environmental Performance, Environmental Costs, and Company Size on Financial Performance with Corporate Social Responsibility as Intervening Variables. Nominal Barometer of Accounting and Management Research 8(1):1–18. doi: 10.21831/nominal.v8i1.24495.
Nababan, Lastri Meito, and Dede Abdul Hasyir. (2019). The Influence of Environmental Costs and Environmental Performance on Financial Performance. Udayana University E-Journal of Economics and Business 3:259–86. doi: 10.24843/eeb.2019.v08.i03.p03.
Pambudi, Januar Eky. (2022). The Influence of Environmental Performance, Environmental Cost, and Corporate Social Responsibility on Financial Performance in Mining Companies Listed on the Indonesia Stock Exchange in 2017 - 2021. Competitive Journal of Accounting and Finance 4(2):1–16.
Pan, Xin, Xuanjin Chen, and Paresha Sinha. (2023). Navigating the Haze: Environmental Performance Feedback and CSR Report Readability. Journal of Business Research 166:114116. doi: 10.1016/j.jbusres.2023.114116.
Princess Dianawati, Cici and Siti Rokhmi Fuadati. (2016). The Influence of CSR and GCG on Corporate Values: Profitability as an Intervening Variable. Journal of Management Science and Research (JIRM). Retrieved 22 February 2023 (http://jurnalmahasiswa.stiesia.ac.id/index.php/jirm/article/view/424).
Setiadi, Ivan. (2021). The effect of environmental performance, environmental costs and company size on financial performance. INNOVATION 17(4):669–79. doi: 10.30872/jinv.v17i4.10054.
Setiawan, Wahyu, Leonardo Budi Hasiholan, and Ari Pranaditya. (2018). The Influence of Environmental Performance, Environmental Costs and Company Size on Financial Performance with Corporate Social Responsibility (CSR) as an Intervening Variable. Journal Of Accounting 2018 4(4):1–12.
Setyaningsih, Riska Dewi, and Nur Fadjrih Fun. (2016). The Influence of Environmental Performance on Financial Performance with Corporate Social Responsibility as Moderator. Journal of Accounting Science and Research (JIRA) 5(4).
Sparta, and Meliska Nur Reska. (2022). Analysis of the Effect of Applying Green Accounting on the Performance of Manufacturing Companies on the Indonesian Stock Exchange. Pamulang University Scientific Journal of Accounting 10(2):89–109.
Suaidah, Yuniep Mujati, and Citra Ayuprilia Kartini Putri. (2020). The Influence of Environmental Performance and Corporate Social Responsibility on Company Financial Performance. Dewantara Research Journal of Accounting & Finance 3(2):101–9.
Suandi, Aily, and Eva Theresna Ruchjana. (2021). The Influence of Environmental Performance and Environmental Costs on Return On Assets (ROA). Journal of Applied Accounting Research 5(1):87–95. doi: 10.5281/zenodo.4733822.
Sulistiawati, Eka, and Novita Dirgantara. (2016). Analysis of the Effect of Applying Green Accounting on Profitability in Mining Companies Listed on the Indonesian Stock Exchange. Journal of Accounting and Finance Review 6(1):865–72. doi: 10.22219/jrak.v6i1.5082.
Suryani, Arna, and Sespi Jumaida. (2022). Green Accounting and Corporate Social Responsibility on Company Performance to Mining Companies in Indonesian." GATR Accounting and Finance Review 7(3):160–66. doi: 10.35609/afr.2022.7.3(3).
Taufiq, Abd Rohman, and Achmad Iqbal. (2021). Analysis of the Role of Corporate Social Responsibility on Social, Economic and Environmental Aspects in the Retail Industry. Scientific Journal of Accounting 6(1):22. doi: 10.23887/jia.v6i1.29046.
Tunggal, Whino Sekar Prasetyaning, and Fachrurrozie. (2014). The Influence of Environmental Performance, Environmental Cost and CSR Disclosure on Financial Performance. Accounting Analysis Journal 3(3):310–20.
Widhi, Niluh Nugrahaning, and I. Nengah Suarmanayasa. (2021). The Effect of Leverage and Sales Growth on Profitability in Companies in the Textile and Garment Subsector. 11(2).
Template
