THE EFFECT OF GREEN ACCOUNTING AND MATERIAL FLOW COST ACCOUNTING ON SUSTAINABLE DEVELOPMENT WITH PROFITABILITY AS A MODERATING FACTOR

Abstract

This study examines the effect of green accounting and material flow cost accounting on sustainable development, with profitability serving as a moderating factor, in mining sector companies listed on the Indonesia Stock Exchange during the 2022–2024 period. The study is motivated by the phenomenon of high environmental degradation caused by mining exploitation activities, which directly threatens long-term ecosystem sustainability. This study aims to: (1) analyze the effect of green accounting on sustainable development; (2) analyze the effect of material flow cost accounting on sustainable development; (3) analyze the moderating effect of profitability on the relationship between green accounting and sustainable development; and (4) analyze the moderating effect of profitability on the relationship between material flow cost accounting and sustainable development. Based on the results of the research and data analysis using Partial Least Squares–Structural Equation Modeling (PLS-SEM), the findings indicate that: (1) green accounting has a positive and significant effect on sustainable development; (2) material flow cost accounting has a positive and significant effect on sustainable development; (3) profitability does not strengthen the effect of Green Accounting on sustainable development; and (4) profitability does not strengthen the effect of Material Flow Cost Accounting on sustainable development.