APSSAI ACCOUNTING REVIEW

The Impact of Green Accounting on Firm Value: The Mediating Role of Company Growth

David Seand Rafael Lubis, Meilda Wiguna, Nur Azlina — Sat, 25 Oct 2025 00:00:00 +0700

Research aims: This study examines the effect of green accounting on firm value with company growth as a mediating variable. The increasing demand for corporate sustainability has encouraged firms to integrate environmental considerations into their accounting practices.

Design/Methodology/Approach: Using a quantitative research approach, this study analyses secondary data obtained from companies that implement green accounting practices. The data are analysed using mediation analysis to evaluate both direct and indirect relationships among variables.

Research findings: The results indicate that green accounting has a positive and significant effect on firm value. Furthermore, green accounting also positively influences company growth, thereby enhancing firm value. The mediation test reveals that company growth partially mediates the relationship between green accounting and firm value. These findings suggest that implementing green accounting not only strengthens corporate growth but also increases firm value by improving stakeholder trust and long-term sustainability performance.

Theoretical contribution/Originality: This study contributes to the literature on sustainable accounting by providing empirical evidence on the strategic role of green accounting in enhancing firm value.

Effect of Audit Tenure and Locus of Control on Audit Quality with Independence as an Intervening Variable

Dina, Abdul Pattawe, Fikry Karim — Sat, 25 Oct 2025 00:00:00 +0700

Research aims: This study examines the effects of audit tenure and locus of control on audit quality, with auditor independence as an intervening variable, among Regional Inspectorate auditors in Central Sulawesi Province, Indonesia. The research is grounded in attribution theory, which explains auditor behavior as a function of internal and external factors.

Design/Methodology/Approach: Using a quantitative research approach, data were collected through questionnaires distributed to regional inspectorate auditors and analyzed using structural equation modelling.

Research findings: The results reveal that audit tenure has a negative but insignificant effect on auditor independence and does not significantly influence audit quality. These findings indicate that the length of audit engagements in the public sector does not compromise or enhance audit quality, given the mandatory nature of audit assignments, standardized procedures, and strong regulatory frameworks. Conversely, locus of control has a positive and significant effect on both auditor independence and audit quality, suggesting that auditors with a strong internal locus of control are better able to maintain objectivity and produce high-quality audits. Auditor independence is also found to have a positive and significant impact on audit quality and to mediate the relationship between locus of control and audit quality, although it does not mediate the relationship between audit tenure and audit quality.

Theoretical contribution/Originality: This study contributes to the public-sector auditing literature by highlighting the dominant role of internal psychological attributes over structural factors in determining audit quality and provides practical implications for auditor development and governance in regional inspectorates.

The Relationship between ESG Practices and Banking Performance in Indonesia

Haryono, Elok Heniwati, Syarif M Helmi — Tue, 28 Oct 2025 00:00:00 +0700

Research aims: This study examines the impact of environmental, social, and governance (ESG) factors on the financial performance of banks in the Indonesian banking sector. The analysis explores the relationship between 25 ESG pillar dimensions and bank performance indicators from 2019 to 2023.

Design/Methodology/Approach: A 129 data observation from 42 Indonesian banks was analyzed using three regression models to assess the influence of ESG initiatives on financial indicators. ESG dimensions, measured as dummy variables based on annual report disclosures, serve as independent variables, while performance indicators, measured using accounting and market variables, serve as dependent variables.

Research findings: The findings indicate that environmental factors do not have a significant impact on bank performance, while social and governance factors show a positive and significant influence. These results suggest that Indonesian banks focusing on social and governance initiatives are likely to achieve better financial outcomes.

Theoretical contribution/Originality: The study offers practitioners and academics a set of empirically validated ESG predictors relevant to bank performance.

Assessing Indonesia's Readiness to Integrate Water Accounting into Green Fiscal Policy

Amrie Firmansyah — Sat, 25 Oct 2025 00:00:00 +0700

Research aims: This study aims to map the readiness for integrating water accounting into Indonesia's green fiscal governance by developing a conceptual framework that links water accounting data, public fiscal systems, and the effectiveness of environmental expenditure as the foundation for designing an environmental budget tagging model.

Design/Methodology/Approach: The study employs a scoping review approach, synthesizing national and international policy documents related to water management, sustainability reporting, and fiscal governance.

Research findings: The study finds that Indonesia has achieved conceptual, regulatory, fiscal, and institutional readiness to adopt water accounting within its green fiscal governance system. The existing statistical infrastructure aligns with the principles of environmental-economic accounting, while the Climate Budget Tagging mechanism provides a fiscal foundation that can evolve into a comprehensive Environmental Budget Tagging system encompassing water-related expenditures.

Theoretical contribution/Originality: This study extends the literature by explicitly connecting water accounting with fiscal policy mechanisms, integrating perspectives from environmental–economic accounting, climate governance, sustainability reporting, and public sector accounting into a single conceptual framework applicable to policy design.

Practitioner/Policy implication: The findings provide a foundation for policymakers to integrate water-related data into fiscal decision-making, promoting transparent and evidence-based environmental budgeting. Embedding water accounting within fiscal systems can strengthen the efficiency, accountability, and sustainability of public spending, aligning it with national green development goals.

Research Limitation/Implication: The study is conceptual in nature and limited to publicly available documents; future research may conduct empirical assessments to validate fiscal-environmental linkages and measure the effectiveness of implementation.

From Broadcast to Platform: Digital Business Intensity and Firm Performance

Hana Dhayan, Erwin Febriansyah, Atika Wulandari Putri — Tue, 28 Oct 2025 00:00:00 +0700

Research aims: This study examines whether digital business intensity affects accounting-based and market-based performance among media and digital platform firms.

Design/Methodology/Approach: A disclosure-based Digital Business Intensity Index (DBII) is constructed for 10 global firms observed during 2020–2024 (50 firm-year observations). Multiple linear regression tests its association with return on assets (ROA) and Tobin's Q while controlling for leverage and firm size.

Research findings: DBII is positively associated with ROA at the 10% significance level, but negatively associated with Tobin's Q at the same marginal level. Firm size and revenue scale display severe multicollinearity, supporting a parsimonious specification that retains only one scale control.

Theoretical contribution/Originality: The study introduces a replicable disclosure-based measure of digital business intensity and shows that operational performance and market valuation may diverge during a platform transition.

Practitioner/Policy implication: Managers and investors should assess digital transformation with both accounting and market measures and distinguish long-run capability building from short-run valuation corrections.

Research limitation/Implication: The small purposive sample, disclosure-based proxy, and disruption-heavy observation period limit causal and cross-sector generalization.