The Role of Financial Performance in Moderating the Relationship of Environmental Management Accounting Strategy to Value Companies in Indonesia

Management Accounting

This study aims to analyze the influence of Environmental Management Accounting (EMA) on company value, by examining the role of financial performance as a moderation variable. As global sustainability demands increase, EMA is becoming an important tool for companies to manage their environmental impact and improve their image. However, empirical findings regarding their impact on company value are still mixed. Based on legitimacy theory and stakeholder theory, this study uses a quantitative method with Moderate Regression Analysis (MRA) on 58 manufacturing companies on the Indonesia Stock Exchange. The results of the study show that EMA does not have a significant effect on the value of the company. This indicates that the company's environmental commitment has not fully convinced the market. In contrast, financial performance has a positive and significant effect on a company's value, in line with stakeholder theories that highlight the importance of strong financial signals for investors. The study's main finding is that financial performance significantly strengthens the relationship between EMA and company value. Companies with solid financial conditions have greater resources to invest in environmental initiatives, thus maximizing EMA's positive impact on market appreciation

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