Ruth Samantha Hamzah (1), Patmawati Patmawati (2), Muhammad Andri Zuliansyah (3), Rizka Novelia (4)
General Background: Growing environmental concerns have encouraged firms to adopt green accounting practices to support sustainable business development. Specific Background: Emerging economies continue to face institutional and technological challenges that may limit the financial outcomes of sustainability initiatives. Knowledge Gap: Comparative evidence on the financial implications of green accounting and the moderating role of green innovation across BRIC and CIVETS countries remains limited. Aims: This study examines the relationships between ESG performance, carbon performance, carbon emission disclosure, and financial performance while assessing the moderating role of green innovation. Methods: Using 952 firm-year observations from BRIC and CIVETS countries during 2018–2024, the study applies panel regression, Moderated Regression Analysis (MRA), and Seemingly Unrelated Estimation (SUEST). Results: Carbon performance is negatively associated with financial performance, indicating that firms with higher carbon emission intensity tend to report lower profitability. In contrast, ESG performance, carbon emission disclosure, and the moderating role of green innovation do not show significant relationships with financial performance. Novelty: This study provides comparative evidence from BRIC and CIVETS economies by integrating green accounting indicators and green innovation within the Natural Resource-Based View framework. Implications: The findings highlight carbon efficiency as a key sustainability factor associated with profitability and provide insights for managers and policymakers in strengthening environmental strategies within emerging economies.
Highlights:
Keywords: Green Accounting, Green Innovation, Financial Performance, BRIC, CIVETS
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