Analysis of How Environmental Accounting Practices Are Developed in Oil Palm Companies in East Aceh

Abstract

This study examines the effects of human resource competence, regulatory compliance, and internal control on financial reporting quality and further investigates the effect of financial reporting quality on managerial decision-making in vertical hospitals under the Ministry of Health of the Republic of Indonesia. The study employed a quantitative approach with a causal research design. Primary data were collected through structured questionnaires distributed to 37 financial reporting staff selected using a saturated sampling technique. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4 to evaluate the proposed relationships among the research variables. The findings indicate that regulatory compliance has a positive and significant effect on financial reporting quality, whereas human resource competence and internal control do not have significant effects. In addition, financial reporting quality has a positive and significant effect on managerial decision-making. These results indicate that compliance with accounting standards and applicable regulatory requirements plays an important role in maintaining the quality of financial reporting within the observed hospital context. The findings also demonstrate that high-quality financial reports provide reliable and relevant information that supports more effective managerial decision-making. The study contributes to public sector accounting literature by providing empirical evidence regarding the determinants of financial reporting quality and its implications for organizational decision-making in government-affiliated hospitals. Practically, the findings emphasize the need to strengthen regulatory compliance and improve financial reporting processes. The study is limited by its small sample size and sector-specific setting, suggesting that future research should involve larger samples and broader institutional contexts.