DO GREEN ACCOUNTING PRACTICES IMPROVE PROFITABILITY? DYNAMIC PANEL EVIDENCE FROM INDONESIA'S HEALTHCARE SECTOR
DOI:
https://doi.org/10.29303/jaa.v11i1.837Keywords:
Sustainability, Kinerja Keuangan, Macroeconomic factors, ESG, CSRAbstract
This study investigates whether green accounting practices improve the profitability of hospitals listed on the Indonesia Stock Exchange. The study uses secondary data from eight IDX-listed hospitals over 2019–2024, comprising 96 firm–semester observations. Profitability was measured by using return on assets (ROA) and return on equity (ROE). The explanatory variables on this study are waste generation, electricity consumption, water usage, corporate social responsibility (CSR), and firm size. This study applies a dynamic panel Generalized Method of Moments (GMM) model to address potential endogeneity and unobserved heterogeneity. The findings show that waste generation, electricity consumption, and water usage negatively affect both ROA and ROE, whereas CSR and firm size significantly enhance profitability. The dynamic specification confirms persistence in profitability among IDX-listed hospitals, emphasizing that sustainability practices can reinforce financial resilience.
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