Research on World Agricultural Economy

Green Accounting Transformation and Sustainability Performance in Agricultural Enterprises: An Empirical Analysis

Mujie Song

aSSIST University, Seoul 03767, Republic of Korea

Tengzhou Jin

Business School, University of New South Wales, NSW, Kensington 2052, Australia

Zekai Nie

Faculty of Business and Communications, INTI International University, 43300 Selangor, Malaysia

Shaoxin Zheng

aSSIST University, Seoul 03767, Republic of Korea

DOI: https://doi.org/10.36956/rwae.v6i4.2210

Received: 25 May 2025 | Revised: 11 June 2025 | Accepted: 27 June 2025| Published Online: 2 September 2025

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Abstract

This study investigates the impact of green accounting practices on corporate sustainability performance across multiple industries, analyzing panel data from 187 publicly listed agricultural farms over a five-year period (2019–2023) using fixed-effects regression models to quantify the influence of comprehensive green accounting implementation on environmental, social, and governance outcomes. Drawing on resource-based theory, institutional theory, and stakeholder theory, this study provides theoretical insights into how accounting systems facilitate organizational responses to sustainability pressures. Our findings reveal robust positive associations between the Green Accounting Index and sustainability metrics, with the strongest effects observed for environmental performance (β = 0.284, p < 0.001, R² = 0.379), followed by social (β = 0.198) and governance dimensions (β = 0.153). The results demonstrate that green accounting functions not only as a compliance mechanism but also as a strategic catalyst, transforming how organizations perceive, measure, and improve their sustainability performance. Dimensional analysis identifies natural resource accounting as the most influential driver of environmental performance (β = 0.38), while integrated reporting frameworks demonstrate the strongest effect on governance outcomes (β = 0.31). Leadership commitment emerges as the most significant moderating factor (β = 0.112, p < 0.01), with the relationship between green accounting and sustainability strengthening over time (45.9% increase in effect size from 2019–2023) and varying substantially across industries (Energy: β = 0.325 vs. IT: β = 0.187). Agricultural farms implementing comprehensive green accounting achieved significant operational improvements, including a 23% average reduction in emissions intensity and a 17% enhancement in resource efficiency, with implications for management practice, organizational design, and policy development.

Keywords: Green Accounting; Agricultural Sustainability; Farm Management Accounting; Environmental Management Accounting; Agricultural ESG Performance; Sustainable Agriculture; Rural Enterprises

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