Green Accounting, Environmental Performance, and Green Innovation: Do Governance Mechanisms Matter for Corporate Profitability?
DOI:
https://doi.org/10.23917/reaksi.v11i2.18450Keywords:
Green accounting, Environmental performance, green innovation, managerial ownerhsip, profitabilityAbstract
This study examines the effects of green accounting, environmental performance, green process innovation, and green product innovation on corporate profitability, with Good Corporate Governance (GCG), proxied by managerial ownership, as a moderating variable. Using a quantitative approach, the study analyzes secondary data from annual and sustainability reports of 85 companies listed on the Indonesia Stock Exchange (IDX) and participating in the PROPER program during 2020–2024, resulting in 403 firm-year observations. The hypotheses were tested using panel data regression and Moderated Regression Analysis (MRA) with the Fixed Effects Model. The results indicate that green accounting and environmental performance do not significantly affect profitability. Green process innovation has a significant negative effect, while green product innovation has a significant positive effect on profitability. Furthermore, managerial ownership strengthens the positive effect of green accounting, strengthens the negative effect of green process innovation, weakens the positive effect of green product innovation, and does not moderate the relationship between environmental performance and profitability.
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