The Effect of Environmental Management Accounting on Company Performance Through Green Innovation with Stakeholder Pressure as A Moderation Variable in Companies in The Basic Industry and Chemical Sectors Listed on The Indonesia Stock Exchange For The Period 2021-2025

Abstract

This study aims to analyze the effect of environmental management accounting (EMA) on firm performance through green innovation as an intervening variable, with stakeholder pressure as a moderating variable in basic materials and chemical sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2021–2025. This study employs a quantitative approach using secondary data from annual reports and sustainability reports. The population consists of all basic materials and chemical sector companies listed on the IDX, and purposive sampling yielded 44 companies or 220 firm-year observations. EMA is measured using an environmental management accounting disclosure index, green innovation is measured using a green product and process innovation index, stakeholder pressure is measured using a composite stakeholder-pressure index, and firm performance is measured using return on assets (ROA). Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The results show that EMA has a significant positive effect on firm performance (β = 0.238, p < 0.001) and on green innovation (β = 0.356, p < 0.001); green innovation has a significant positive effect on firm performance (β = 0.312, p < 0.001) and partially mediates the effect of EMA on firm performance (VAF = 31.8%); and stakeholder pressure significantly strengthens the effect of green innovation on firm performance (interaction β = 0.176, p < 0.01). These findings imply that stakeholder pressure plays an important role in strengthening the contribution of green innovation to improved firm performance