JASF: Journal of Accounting and Strategic Finance

The Financial Implications of Carbon Transparency: Examining the Mediating Role of Emission Disclosure

Catur Kumala Dewi — 2025-06-17

Purpose: The purpose of this research is to examine the relationship between carbon emissions disclosure as an intervening variable between corporate governance, capital expenditures, and financial performance.

Method: Companies listed on the Indonesia Stock Exchange (IDX) that are involved in manufacturing are the primary focus of the study. The research employs a purposive sampling technique to select 16 organizations, resulting in 80 data observations spanning the period from 2019 to 2023. The correlations among variables are examined using path analysis, which is conducted with IBM SPSS Statistics 26.

Findings: Gender diversity on boards has a favorable effect on a company's bottom line, according to the study's results. The business's financial performance is negatively affected by the size of the audit committee. Carbon emissions disclosure, on the other hand, is unaffected by factors like board size, gender diversity, or audit committee size. Capital spending, board size, and disclosure of carbon emissions do not substantially affect the financial success of firms. Carbon emissions disclosure also does not mediate the relationship between boards' size, gender diversity, capital spending, audit committee size, and business financial performance.

Novelty/Value: This study provides insights into the limited role of carbon emissions disclosure as a mediator in corporate financial performance, highlighting the complex interactions between governance factors and sustainability reporting, especially on carbon emission disclosure.

Defining and Classifying Corporate Social Costs: An Initiative to Enrich the Thought of Accounting for CSR

Younis A. Battal Saleh — 2025-06-26

Purpose: This desk research aims to provide a clear and precise definition of the term "corporate social costs (CSCs)" from the perspective of accountants and to determine a set of standards by which CSCs may be separately identified from corporate economic cost (CECs).

Method: Rational thinking and logical reasoning are frequently used in theoretical studies that seek to advance and strengthen the theoretical framework of any major in the social sciences, including accounting and economics. Therefore, in order to accurately define and classify direct and indirect CSCs, the research adopts two different approaches: To define and classify indirect CSCs, the research adopted the "External Damage Approach Resulting from the Economic Activities of Companies." To define and classify direct CSCs, the research adopted the "Supporting Social Responsibilities Approach. "The characteristics of direct CSCs can be inferred by studying the nature of the obligation to incur these costs, the role they play, the impact they have, the justifications that justify them, the benefits they achieve, and the beneficiaries. Through the characteristics of direct CSCs, the criteria for distinguishing between CSCs and CECs can be determined.

Findings: This research is not merely about finding a new, more specific definition related to CSC and CEC, but has been able to establish a set of criteria to distinguish between CSC and CEC.

Novelty/Value: Because there aren't many publications in this area, this research is regarded as a contribution to the field of CSR accounting theory. The results of this research will improve businesses' capacity to truthfully report on their social performance. In terms of education, this research will clear up any confusion students might have on what CSCs mean.

Profit Sharing System in Islamic Banking Before, During, and After Covid-19 Pandemic, any Moderation?

Taudlikhul Afkar — 2025-06-30

Purpose: Explain the consistency of the implications of NPF on Profitability with Profit-sharing System of Islamic Banking through mudharabah financing and musharakah financing before, during, and after the Covid-19 pandemic.

Method: Quantitative approach is used in this study with. The number of observations is 14 Islamic banks in Indonesia. This study uses combined financial statement data time series from the Financial Services Authority (OJK) for the 2018-2024 period. The data analysis technique uses Moderating Regression Analysis (MRA) with the JAMOVI tool to further examine the contribution of NPF before, during, and after the covid-19 pandemic through Slope Analysis.

Findings: First finding explains that NPF before and after covid-19 pandemic weakened profitability through profit-sharing system with mudharabah financing, while NPF during the covid-19 pandemic did not weaken profitability. Second finding explains that NPF before and during the covid-19 pandemic did not weaken profitability, while NPF after the covid-19 pandemic weakened profitability through profit-sharing system with musharakah financing.

Novelty/Value: Originality of this study is the consistency of the implications of NPF moderation on the profitability of Islamic banks in Indonesia through profit-sharing system with different times, namely before, during, and after the Covid-19 pandemic, because there is not yet consistency in the statement of NPF's role in Islamic Banks before.

Behavioral Drivers of Capital Structure and Their Impact on MSE Performance: Evidence from Indonesia

Vebby Anwar — 2025-06-30

Purpose: This study explores how financial behavior influences capital structure decisions and, in turn, affects firm financial performance and sustainable business growth among micro and small enterprises (MSEs) in Indonesia. Drawing on behavioral finance theory, the study examines the effects of three antecedents, financial literacy, risk tolerance, and behavioral biases on capital structure decisions. Furthermore, it investigates the mediating roles of access to finance and financial planning behavior, and the outcome effect of financial performance on long-term business growth.

Method:Data was gathered from 420 MSE owner-managers across a variety of Indonesian sectors using a standardized questionnaire. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to examine the data.

Findings: Results revealed that all three behavioral antecedents significantly influenced capital structure decisions. Capital structure, in turn, had both direct and indirect effects on firm financial performance, mediated through improved financial access and planning. Moreover, financial performance was found to positively influence sustainable business growth.

Novelty/Value:By relating behavioral characteristics to organizational outcomes and financial decision-making in the setting of an emerging economy, the study adds to the body of literature. Targeted financial education and behavioral interventions are necessary to improve financing results for MSEs, among other practical implications.

Use Big Theory Clarifies Financial Performance: The Role of Internal Mechanisms Control

Magda Siahaan — 2025-06-30

Purpose: This paper establishes the basic concepts, related work, and core propositions of implementing integrated Governance, Risk Management and Compliance (GRC), internal audit function, and financial performance through the perspective of the underlying grand theory.

Method: This paper uses literature-based analysis. First, it builds a conceptual argument by looking for the big theory, which is the leading theory that serves as the foundation for explaining and analyzing important phenomena in a field of science, which can underlie the integration of GRC, internal audit, and financial performance. It concludes with the predicted relationships of the three that can be seen through their application. Big theory is the leading theory that serves as the foundation for explaining and analyzing important phenomena in a field of science.

Findings: Based on underlying the big theory and the supporting concepts, it is proven that integrated GRC, internal audit, and financial performance are in one corridor of built relationships.

Novelty/Value: Integration of GRC, internal audit, and financial performance in one agency theory-based framework presents integrated relationships and new hypotheses, different from previous studies that separate these variables.