The Role of Board Independence in Moderating the Effect of Green Accounting and Environmental Performance on Corporate Financial Performance
DOI:
https://doi.org/10.32493/JABI.v9i2.y2026.p173-192Keywords:
Green accounting, environmental performance, financial performance, board independence, green accounting, environmental performance, financial performance, board independence, moderationAbstract
This study aims to examine the effect of green accounting and environmental performance on financial performance, as well as the moderating role of board independence in manufacturing companies listed on the Indonesia Stock Exchange and Bursa Malaysia during the 2020-2025 period. The study employs a quantitative approach using secondary data from 1,714 firm-year observations and applies Moderated Regression Analysis (MRA) after ensuring the classical assumption test. The results show that green accounting has a positive and significant effect on financial performance, indicating that firms with better environmental management tend to achieve higher profitability. Furthermore, board independence is found to moderate the relationship between green accounting and financial performance by strengthening its effect. Similarly, board independence also strengthens the relationship between environmental performance and financial performance. These findings suggest that effective corporate governance and financial performance are closely related. These findings suggest that effective corporate governance enhances the value relevance of environmental practices. The study concludes that environmental performance has a stronger influence on financial performance compared to green accounting, and that the effectiveness provides implications for firms to integrate environmental strategies into corporate governance structures and for regulators to strengthen sustainability reports and board oversight mechanisms.
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