Bridging Sustainability and Profitability: An Analysis of Green Accounting and CSRD in Sharia-Compliant Mining Firms
DOI:
https://doi.org/10.21580/economica.2023.14.2.22635Keywords:
Corporate Social Responsibility Disclosure, Green Accounting, Jakarta Islamic Index, Profitability, Sharia-Compliant MiningAbstract
Profitability is a key indicator of corporate performance and sustainability, especially for firms operating under Islamic principles that must balance financial goals with religious, social, and environmental responsibilities. Green accounting and corporate social responsibility disclosure (CSRD) have emerged as mechanisms to strengthen reputation, stakeholder trust, and compliance. However, most prior studies examined these variables separately with inconsistent results, leaving a gap in understanding their combined effect on profitability in sharia-compliant sectors. This study addresses that gap by analysing the influence of green accounting and CSRD on mining companies listed in the Jakarta Islamic Index (JII) during 2016–2021. Using secondary data from financial statements and sustainability reports of six firms, profitability was measured through Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). Regression results show green accounting significantly improves all profitability indicators, while CSRD positively affects ROA and ROE but not NPM. The novelty lies in integrating both variables in an Islamic mining context over six years, offering new evidence that sustainability practices enhance profitability while reinforcing sharia compliance.
Downloads
References
Agyemang, A. O., Yusheng, K., Twum, A. K., Edziah, B. K., & Ayamba, E. C. (2023). Environmental accounting and performance: empirical evidence from China. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-022-02853-y
Aji, D. P., Sunardi, N., & Aji, B. W. (2021). The effect of corporate social responsibility disclosure and good corporate governance on financial performance. Proceedings of the 4th International Conference on Economics, Business, and Accounting (PICEEBA 2020). Atlantis Press. https://doi.org/10.2991/aebmr.k.210616.016
Aniela, Y. (2012). Peran Akuntansi Lingkungan dalam Meningkatkan Kinerja Lingkungan dan Kinerja Keuangan Perusahaan. Berkala Ilmiah Mahasiswa Akuntansi Widya Mandala, 1(1).
Asni, N., & Agustia, D. (2021). The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries. European Journal of Innovation Management, 25(5), 1328–1347. https://doi.org/10.1108/ejim-11-2020-0459
Aula, S., Sumiyati, & Mai, M. U. (2022). The effect of corporate social responsibility disclosure on the financial performance of Islamic commercial banks in Indonesia. Jurnal Manajemen Bisnis, 13(2), 205–216. https://doi.org/10.18196/mb.v13i2.14369
Brogi, M., & Lagasio, V. (2018). Environmental, social, and governance and company profitability: Are financial intermediaries different? Corporate Social Responsibility and Environmental Management, 26(3), 576–587. https://doi.org/10.1002/csr.1704
Budi, I., Arifin, Z., & Supriyanto, E. (2021). Islamic corporate social responsibility disclosure and financial performance of Islamic banks in Indonesia. Journal of Islamic Accounting and Finance Research, 3(1), 45–64. https://doi.org/10.21580/jiafr.2021.3.1.6010
Budiono, A., & Dura, J. (2021). The effect of green accounting implementation on firm value and profitability with environmental performance as a moderating variable. International Journal of Educational Research & Social Sciences, 2(5), 1150–1160. https://doi.org/10.51601/ijersc.v2i5.158
Chasbiandani, T. I., Rizal, N., & Satria, H. (2019). Green accounting, profitability, and firm value: Evidence from Indonesian manufacturing companies. AFRE (Accounting and Financial Review), 2(2), 87–94. https://doi.org/10.26905/afr.v2i2.3602
Erlangga, Catur Muhammad, Achmad Fauzi & Ati Sumiati. Penerapan Green Accounting dan Corporate Social Responsibility Disclosure Terhadap Nilai Perusahaan Melalui Profitabilitas. Akuntabilitas: Jurnal Ilmu AkuntansiVolume 14 (1). 2021.h.61 – 78
Faizah, B. S. Q. (2020). Penerapan Green Accounting Terhadap Kinerja Keuangan. Jurnal Riset Akuntansi Kontemporer, 12(2), 94–99. https://doi.org/10.23969/jrak.v12i2.2779
Kalbouneh, A., Aburisheh, K., Shaheen, L., & Aldabbas, Q. (2023). The intellectual structure of sustainability accounting in the corporate environment: A literature review. Cogent Business & Management, 10(2), 2211370. https://doi.org/10.1080/23311975.2023.2211370
Kamaliah. (2020). Disclosure of corporate social responsibility (CSR) and its implications on company value as a result of the impact of corporate governance and profitability. International Journal of Law and Management, 62(4), 339–354. https://doi.org/10.1108/IJLMA-08-2017-0197
Khairiyani. (2020). Islamic Corporate Social Responsibility Terhadap Kinerja Keuangan dan Nilai Perusahaan. Jurnal Riset Akuntansi Dan Keuangan, 8(2), 279–290. https://doi.org/10.17509/jrak.v8i2.21577
Mirovic, V., Kalas, B., Djokic, I., Milicevic, N., Djokic, N., & Djakovic, M. (2023). Green Loans in bank Portfolio: financial and marketing implications. Sustainability, 15(7), 5914. https://doi.org/10.3390/su15075914
Nenobais, A. H., Sia Niha, S., & Manafe, H. A. (2022). Pengaruh Return On Asset (ROA), Return On Equity (ROE), Net Profit Margin (NPM) dan Earning Per Share (EPS) terhadap Harga Saham (Suatu Kajian Studi Literatur Manajemen Keuangan Perusahaan). Jurnal Ekonomi Manajemen Sistem Informasi, 4(1), 10–22.
Ningsih, S., Susanti, E., & Cahyono, F. D. (2022). The effect of corporate social responsibility disclosure on profitability in food and beverage companies listed on the Indonesia Stock Exchange. European Journal of Business and Management Research, 7(6), 217–222. https://doi.org/10.24018/ejbmr.2022.7.6.1707
Platonova, E., Asutay, M., Dixon, R., & Mohammad, S. (2018). The impact of corporate social responsibility disclosure on financial performance: Evidence from the GCC Islamic banking sector. Journal of Business Ethics, 151(2), 451–471. https://doi.org/10.1007/s10551-016-3229-0
Prayanthi, N. M. D., & Budiarso, N. S. (2022). The effect of corporate social responsibility disclosure on financial performance and firm value. Cogent Business & Management, 9(1), 1–14. https://doi.org/10.1080/23311975.2022.2141657
Prena, G. Das, Devi, K., Dharma, U., & Nasional, U. P. (2020). No Title. 18(April), 39–49.
Purbawangsa, I. B. A., Solimun, S., Fernandes, A. A. R., & Mangesti Rahayu, S. (2020). Corporate governance, corporate profitability toward corporate social responsibility disclosure and corporate value (comparative study in Indonesia, China and India stock exchange in 2013-2016). Social Responsibility Journal, 16(7), 983–999. https://doi.org/10.1108/SRJ-08-2017-0160
Qodratilah, N. H. I. (2021). Pengaruh penerapan green accounting terhadap tingkat pencapaian laba dan pertumbuhan harga saham pada perusahaan peraih penghargaan industri hijau yang terdaftar di bursa efek indonesia (BEI) tahun 2015-2019. Review of Accounting and Business. https://api.semanticscholar.org/CorpusID:250571217
Riyadh, H. A., Al-shmam, M. A., Huang, H. H., Gunawan, B., & Alfaiza, S. A. (2020). The Analysis of Green Accounting Cost Impact on Corporations Financial Performance. 10(6), 421–426.
Sahoo, S. (2022). Process quality management and operational performance: exploring the role of learning and development orientation. International Journal of Quality & Reliability Management, 39(5), 1190–1208. https://doi.org/10.1108/IJQRM-12-2020-0398
Suhardjo, Y., Karim, A., & Taruna, M. S. (2022). Effect of profitability, liquidity, and company size on capital structure: Evidence from Indonesia manufacturing companies. 5(1), 70–78.
Sulistiawati, E., & Dirgantari, N. (2016). Green accounting and firm profitability in Indonesian mining companies. Jurnal Riset Akuntansi dan Keuangan, 4(1), 799–810. https://doi.org/10.17509/jrak.v4i1.3209
Wangi, W. R., & Lestari, R. (2019). Pengaruh Penerapan Green Accounting terhadap Tingkat Profitabilitas Perusahaan. 489–493.
Wulandari, E. (2020). The effect of corporate social responsibility disclosure on company profitability. Jurnal Ekonomi Akuntansi dan Manajemen, 19(1), 57–70. https://doi.org/10.32477/jeam.v19i1.203
Wulandari, S. (2020). Pengaruh Corporate Social Responsibility (CSR) Disclosure terhadap Profitabilitas Perusahaan. Jurnal Ekonomi Akuntansi Dan Manajemen, 19(1), 1-14. doi:10.19184/jeam.v19i1.15436.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Economica: Jurnal Ekonomi Islam
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), acknowledging its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges and earlier and greater citation of published work (See The Effect of Open Access).
