Sustainability Accounting and ESG Disclosure: Their Effects on Corporate Financial Performance

Suwandi Ng

doi:10.55681/economina.v5i9.4359

Authors

Suwandi Ng Universitas Atma Jaya Makassar, Indonesia

DOI:

https://doi.org/10.55681/economina.v5i9.4359

Keywords:

Sustainability Accounting; ESG Disclosure; Corporate Financial Performance; Firm Size; Sustainability Reporting

Abstract

This study examines the effects of sustainability accounting and environmental, social, and governance (ESG) disclosure on corporate financial performance, with ESG disclosure as a mediator and firm size as a moderator. A quantitative explanatory design was employed using data from 118 non-financial companies listed on the Indonesia Stock Exchange. Hypotheses were tested using Partial Least Squares Structural Equation Modelling. Sustainability accounting and ESG disclosure both significantly improve corporate financial performance, and ESG disclosure partially mediates the effect of sustainability accounting. Firm size strengthens the effect of ESG disclosure on financial performance. These findings suggest that companies should institutionalise sustainability accounting and improve the quality of ESG disclosure to translate sustainability commitment into financial returns

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