THE EFFECT OF GREEN ACCOUNTING AND MATERIAL FLOW COST ACCOUNTING ON CORPORATE SUSTAINABILITY: THE MODERATING ROLE OF GOOD CORPORATE GOVERNANCE
Main Article Content
Aqdiah
Suripto
Ani Kusumaningsih
This study aims to analyze the influence of green accounting and material flow cost accounting (MFCA) on corporate sustainability with good corporate governance (GCG) as a moderating variable. The research population includes 43 textile and garment manufacturing companies listed on the Indonesia Stock Exchange, Malaysia Stock Exchange, and Singapore Exchange from 2021 to 2023. The research method employs panel data regression analysis with a fixed effect model approach. The results indicate that green accounting does not significantly affect corporate sustainability. MFCA in production flow shows a significant negative effect, while MFCA in production costs and production output show no significant effects. GCG strengthens the effect of MFCA production output on sustainability, but weakens the effect of MFCA production flow, and does not moderate the relationship between green accounting and sustainability. These findings indicate that the implementation of environmental accounting has not been optimal in supporting corporate sustainability, and the role of corporate governance varies depending on the dimensions of environmental accounting practices implemented.
Abdullah, M. W., & Amiruddin. (2017). Material flow cost accounting as a tool for improving environmental management. Journal of Environmental Accounting, 5(2), 45–62.
Country Meters. (2025). Population data for Indonesia, Malaysia, and Singapore. Retrieved from https://countrymeters.com
Damayanti, R., & Yanti, S. (2023). The role of material flow cost accounting in sustainable development: Evidence from Indonesian manufacturing companies. Asian Journal of Accounting Research, 8(1), 78–95.
Daromes, F. E., et al. (2023). Green accounting and corporate sustainability: Evidence from Southeast Asian companies. Journal of Sustainable Finance & Accounting, 15(3), 112–130.
Databoks. (2022). Industrial waste data in Indonesia. Katadata.co.id. Retrieved from https://databoks.katadata.co.id
Hindriani, S., et al. (2024). Environmental accounting practices and corporate sustainability performance. International Journal of Accounting and Environmental Management, 12(2), 45–67.
Rachmawati, L., & Karim, K. (2021). The effectiveness of green accounting and material flow cost accounting on corporate sustainability. Journal of Environmental Management Accounting, 9(1), 34–52.
Rakesa, A., & Werastuti, D. N. S. (2022). Positive impacts of environmental accounting practices on corporate sustainability. Asian Journal of Business and Accounting, 15(2), 89–107.
Santoso, B., & Handoko, J. (2025). Material flow cost accounting implementation in textile industry: Challenges and opportunities. Journal of Cost Management Accounting, 18(1), 23–45.
Sapulette, M. S., et al. (2021). Environmental law enforcement and corporate compliance in Indonesia. Indonesian Journal of Environmental Law, 7(2), 156–178.
Setyorini, P. (2023). Environmental protection expenditure in Malaysian manufacturing sector. Malaysian Journal of Environmental Economics, 11(3), 67–89.
Singgih, M. L. (2022). Good corporate governance and corporate sustainability: The leadership perspective. Journal of Corporate Governance and Sustainability, 10(4), 134–156.
Syafrina, R., et al. (2020). Corporate environmental violations and legal consequences in Indonesia. Journal of Business Law and Ethics, 8(1), 23–45.
Tham, J. (2023). Environmental law enforcement in Singapore: Case studies of industrial violations. Singapore Journal of Environmental Law, 15(2), 89–104.
Tran, M. D., & Herzig, C. (2020). Material flow cost accounting in developing Asian countries: Implementation challenges and prospects. Asian Review of Environmental Management, 14(3), 112–134.
