August 13, 2025

The Moderating Role of Good Corporate Governance on the Relationship Between Green Accounting and Financial Performance

Key Points

Good corporate governance significantly moderates the relationship between green accounting and financial performance, enhancing overall effectiveness.
The analysis, involving 98 observations, employed moderated regression analysis to assess the data relationship.
Green accounting alone does not significantly impact financial performance, indicating a need for strong governance practices.
Findings highlight the increasing importance of integrating environmental aspects into corporate strategies in emerging markets like Indonesia.

Abstract

The purpose of this study is to investigate the extent to which Good Corporate Governance (GCG) plays a role in the connection between Green Accounting and the overall performance of ESG Leaders indexed businesses that are traded on the Indonesia Stock Exchange during the 2021–2023 period. The background of this study departs from the increasing pressure on the integration of environmental aspects in business strategies, as a means of fulfilling a sense of social duty and as part of an effort to preserve the credibility of the organisation in the eyes of the general public. This study uses a quantitative approach with a sample of 98 observation data. The test was carried out by regression analysis using Moderated Regression Analysis (MRA). According to the findings of the research, Green Accounting does not have a substantial impact on financial performance. On the other hand, Good Corporate Governance has been demonstrated to moderate the impact of Green Accounting on financial performance, and it has been shown to have a considerable impact.

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