PurposeThis study aims to determine (1) the effect of environmental management accounting on organizational performance and (2) the mediating effect of process innovation on the relationship between environmental management accounting and organizational performance.Design/methodology/approachThis research uses survey methods designed for management accountants of large manufacturing companies in Indonesia. Data from 123 respondents were analyzed using the WarpPLS.FindingsThe implementation of environmental management accounting exerted a positive effect on organizational performance. It is evident that the implementation of environmental management accounting encourages companies to innovate processes which will improve how well the organization performs.Research limitations/implicationsThese findings still contained several limitations such as data were only collected from one province in Indonesia, and so the findings might not be generalizable to other provinces in Indonesia. Also, the number of variables studied only involved three. The study only focused on certain dimensions of environmental management accounting without considering other dimensions in-depth.Practical implicationsThese findings extend the literature on environmental management accounting and demonstrate, from a practical perspective, environmental management accounting (EMA), which prioritizes the environment, will encourage companies to innovate their processes so that they are more environmentally friendly; EMA recognizes the important role of accountants in managing environmental issues.Originality/valueThis study documents the importance of environmental management accounting to assist companies in getting accurate information on environmental issues and environmental costs.
The Large-Scale Social Restrictions Policy (PSBB) as an effort to deal with Covid 19 in Indonesia, has weakened the JCI and triggered share price volatility. Companies use cash holdings to strengthen the ability of dividends to reduce share price volatility for a sustainable negative impact on the company. The aim of the research is to provide empirical evidence of the moderating role of cash holding on the relationship between dividends and share price volatility after the PSBB in Indonesia. The research population is all non-financial companies listed on the IDX in 2020, with a final sample of 223 companies, which were analyzed using moderated regression analysis (MRA). The results of the study show that when the business environment is uncertain due to PSBB, cash holding shows that companies are careful in using cash, creates positive sentiment from investors, strengthens positive signals formed by dividends and reduces price volatility in the capital market.
Keywords: Dividends; Volatility Stock Price; Cash Holding; Covid 19
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