E-Jurnal Akuntansi
Vol. 34 No. 12 (2024)

Financing Decisions and Green Accounting: The Moderating Role of Profitability

Afni Eliana Saragih (Institut Teknologi dan Bisnis Sabda Setia)
Irma Christiani (Sabda Setia Institute of Technology and Business)



Article Info

Publish Date
18 Oct 2026

Abstract

Environmental management has emerged as a pressing global concern, prompting governments worldwide to mandate the adoption of environmentally sustainable practices, commonly referred to as green accounting. This study examines the effects of debt financing and equity financing decisions on green accounting practices while also investigating the moderating role of profitability in these relationships. The research utilizes secondary data collected from manufacturing firms in the basic industry and chemical sectors listed on the Indonesia Stock Exchange (IDX) during the period 2021–2023. A panel data regression analysis with moderation effects was employed, with preliminary testing conducted to determine the most appropriate econometric model: Fixed Effect Model (FEM), Common Effect Model (CEM), or Random Effect Model (REM). The findings reveal that debt financing negatively impacts green accounting practices, while equity financing has a significant positive effect. However, profitability was not found to moderate the relationship between financing decisions and green accounting. These results underscore the distinct influences of financing strategies on corporate environmental practices and suggest that profitability alone may not enhance the integration of green accounting within financing decisions.

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Journal Info

Abbrev

akuntansi

Publisher

Subject

Economics, Econometrics & Finance

Description

E-JURNAL AKUNTANSI (EJA) E-Jurnal Akuntansi [e-ISSN 2302-8556] is an electronic scientific journal published online once a month. E-journal aims to improve the quality of science and channel the interest of sharing and dissemination of knowledge for scholars, students, practitioners, and the ...