Abstract
Purpose: The research investigates whether environmental performance and MFCA and their impact on the financial results of food and beverage production firms registered on the Indonesia Stock Exchange (IDX) during the years 2020 to 2024.
Design/Methodology/Approach: A quantitative approach was adopted in this study, utilizing secondary data obtained from annual reports, sustainability reports, and PROPER records. Through purposive sampling, the study comprised 40 observations. The data were subsequently analyzed using multiple linear regression with the assistance of SPSS version 26.
Findings: The findings indicate that environmental performance has a significant effect on financial performance, while MFCA does not demonstrate a significant partial effect. Nevertheless, when evaluated jointly, environmental performance and MFCA exert a significant influence on financial performance.
Research Implications: From a theoretical perspective, the findings reinforce the applicability of Legitimacy Theory in describing the association between corporate environmental performance and Financial Performance. In contrast, the absence of a significant effect of MFCA suggests that operational efficiency and environmental management accounting may require consideration from a broader theoretical perspective. In practical terms, companies are encouraged to enhance their environmental management practices while improving the efficiency of resource utilization to support Financial Performance. Furthermore, the findings emphasize the need for more comprehensive MFCA measurements to evaluate the financial consequences of material losses and inefficient resource utilization.