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The Influence of Biological Asset Accounting Policies and Corporate Governance Practices on the Financial Performance: Moderating Role of Knowledge about Renewable Energy

Author

Listed:
  • Retno Martanti Endah Lestari

    (Faculty of Economics, Universitas Pakuan, Indonesia; and Doctoral Student at Faculty of Economics and Business, Universitas Padjadjaran, Indonesia,)

  • Wahyudin Zarkasyi

    (Faculty of Economics and Business, Universitas Padjadjaran, Indonesia)

  • Ida Farida

    (Faculty of Economics, Universitas Pakuan, Indonesia)

Abstract

High financial performance is the primary goal of all companies, including agricultural companies. In practice, the impact caused by various problems related to accounting policies of biological assets, principles of good corporate governance, knowledge about renewable energy and size of the company. This study aims to prove empirically whether there is an influence of biological asset accounting policy implications, good corporate governance practices and company size on financial performance along with the moderating role of knowledge about renewable energy in agricultural sector companies. Research data were collected through questionnaire instruments, face-to-face interviews and group discussion forums which were conducted in several places in Indonesia by sampling with non-probability sampling. Data were analyzed using Structural Equation Model (SEM). The results showed that the implications of biological asset accounting policies, good corporate governance practices and company size had positive effects on financial performance and knowledge about renewable energy is playing a moderating role among the links. The plantation and forestry sector which is the unit of analysis is a limitation of this study because the agricultural industry includes not forests and gardens, but livestock and fisheries are also included in those who have biological transformed assets.

Suggested Citation

  • Retno Martanti Endah Lestari & Wahyudin Zarkasyi & Ida Farida, 2020. "The Influence of Biological Asset Accounting Policies and Corporate Governance Practices on the Financial Performance: Moderating Role of Knowledge about Renewable Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 615-622.
    • Handle: RePEc:eco:journ2:2020-05-73
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    References listed on IDEAS

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    More about this item

    Keywords

    Biological Asset Accounting Policies; Good Corporate Governance; Company Size; Financial Performance; Knowledge about Renewable Energy;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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