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 +0000

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 +0000

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 +0000

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.