The Influence of Intellectual Capital on Corporate Sustainability through Management Accounting Practices and Corporate Performance Companies of Agroindustry Based in East Jawa

Abstract

This research is to test and analyze Intellectual Capital in influencing the Company's Sustainability through the Practice of Management Accounting and Corporate Performance in Agro-industry-based companies in East Java. The population of this research is Agroindustry companies in East Java, while the sample of this study is 135 Agroindustry companies which are taken by proportional random sampling, with respondents of company level managers. Data collection uses questionnaires, while data analysis uses Structural Equation Modeling (SEM). The results of testing and analysis show that: Intellectual Capital has no significant effect on Management Accounting Practices; Intellectual Capital has a significant effect on Corporate Performance ; Intellectual Capital has a significant effect on Corporate Sustainability ; then Management Accounting Practices have a significant effect on Corporate Performance ; Management Accounting Practices have a significant effect on Corporate Sustainability ; and Corporate Performance has a significant effect on Corporate Sustainability . No proof of Intellectual Capital has an effect on Management Accounting Practices because management accounting practices are more strongly influenced by the Professional Ethics of Accountants. Based on the results of the investigation to examine the role of endogenous mediation variables, it is known that the seventh hypothesis (H7) about the influence of independent variables (intellectual capital) on the mediating variable (management accounting practice) is not significant, it can be said that the management accounting practice variable is not a mediating variable in the relationship intellectual capital, management accounting practices and corporate performance. Thus H7 states that: Management accounting practices mediate the relationship between intellectual capital and corporate performance, significantly rejected. The eighth hypothesis (H8) is known that the influence of independent variables (intellectual capital) on the mediating variable (management accounting practice) is not significant, it can be said that the variable of management accounting practices is not a mediating variable in the relationship of intellectual capital, management accounting practices and corporate sustainability. Thus H8 states that: Management accounting practices mediate the relationship between intellectual capital and corporate sustainability, significantly rejected. The ninth hypothesis (H9), tenth (H10) and eleventh hypothesis (H11) can be seen that management accounting practices have a significant effect on corporate performance, corporate performance has a significant effect on corporate sustainability, indirect influence 0.267 is smaller than direct influence 0.383, it can be said that corporate performance as a mediating variable part (partial mediation). Hypothesis 9 (H9) which states that: Corporate performance mediates the relationship between intellectual capital and corporate sustainability, is significantly accepted. Hypothesis 10 (H10) which states that: Corporate performance mediates the relationship between management accounting practices and corporate sustainability, is significantly accepted. Hypothesis 11 (H11) which states that: Among the management accounting practices and corporate performance variables there are full mediation, significantly rejected. Keywords—intelactual capital; management accounting practices; corporate performance; corporate sustainability