GOOD CORPORATE GOVERNANCE, GREEN ACCOUNTING, AND EARNINGS SUSTAINABILITY: EVIDENCE FROM JAKARTA ISLAMIC INDEX

GOOD CORPORATE GOVERNANCE, GREEN ACCOUNTING, AND EARNINGS SUSTAINABILITY: EVIDENCE FROM JAKARTA ISLAMIC INDEX

good corporate governance (GCG), Green accounting

This research empirically tested the effect of good corporate governance (GCG) practices on the earnings sustainability of listing firms in the Jakarta Islamic Index. This research also tested the role of green accounting in the relationship between GCG and sustainable earnings. GCG was promoted by management ownership, the commissioner’s boards, the audit committee, and institutional ownership. Green accounting was measured by the
results of corporate management of the environment (PROPER), which is related to the regulations of the Ministry of Environment and Forestry of Indonesia. Data testing was performed using panel
data regression analysis. The research findings show that GCG (management ownership, commissioners boards, and audit committee) positively affect sustainable earnings. In addition,
it has been empirically proven that green accounting has a moderating function of the positive effect of GCG on sustainable earnings. Based on the sustainability theory, the company tends to make ethical and legal efforts to achieve sustainable performance. So, the sustainability theory captures that synergy between corporate governance and green accounting can improve earnings
sustainability.

Siti Rokhaniyah, Siti Afidatul Khotijah, Herlina Manurung, Desi Permatasari, Anisyawati

DOI: http://dx.doi.org/10.26418/jebik.v13i2.78787

Univ. Tanjungpura

31-08-2024

Sri Wahyuni

P-ISSN : 2087-9954, E-ISSN: 2550-0066.

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Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK) Univ. Tanjungpura 2024