The Role of Green Accounting, Audit Quality, and Budget Efficiency in Driving Corporate Sustainability Performance: Evidence from State-Owned Banks

Abstrak

For state-owned banks, corporate sustainability performance has become a strategic requirement. This is because of their dual role; they must support national economic policies and set standards for private institutions. The study examines the combined impact of green accounting, audit quality, and budget efficiency on sustainability results. This study employs a mixed-methods design, combining quantitative regression analysis with qualitative insights from interviews and case studies of Indonesian state-owned banks. Information was gathered from financial reports, sustainability disclosures that were in line with GRI and SASB standards, and industry surveys with 120 responses. According to the regression results, the three independent variables together account for 68% of the variation in sustainability performance. Audit quality was found to be the most important factor (β = 0.364, p = 0.000), followed by green accounting (β = 0.290, p = 0.000) and budget efficiency (β = 0.269, p = 0.001). These results highlight the significance of open governance, systematic environmental reporting, and efficient resource distribution in achieving reliable and robust sustainability. By demonstrating how accountability mechanisms reinforce sustainability practices, the study contributes to stakeholder and legitimacy theory. It also provides policymakers and managers with practical advice on how to improve audit quality, broaden green accounting, and improve budgeting strategies.