Management accounting practices going sustainable: the move toward sustainable risk management in ASEAN developing economies

Abstract

Purpose The purpose of this study will be to provide a comprehensive perspective on sustainable risk management (SRM) with internal components within enterprises. Particularly, this study aims to explore how sustainable management accounting practices mediate the influence of both risk-taking tendency (RTT) and sustainable core values on SRM. Additionally, it also examines the moderating influence of the RTT on the link between sustainable management accounting practices and SRM, as a mediated moderating model. Design/methodology/approach The study hypotheses have been appraised using partial least squares structural equation modeling with observed information from 495 sizeable listed enterprises in ASEAN developing economies, comprising Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Findings The findings have been as follows: (1) The RTT favorably influences sustainable management accounting practices (SMAPs), which, in turn, affects SRM; (2) Sustainable core values favorably affect SMAPs, which, in turn, affect SRM; (3) It can be specified that SMAPs mediate the influence of both RTT and sustainable core values on SRM; (4) When the RTT is strong, the influence of SMAPs on SRM has been enlarged. Originality/value The findings of this study demonstrate how the interaction between RTT and SMAPs can benefit to the success of large enterprises that use risk management systems in emerging economics. Furthermore, the present paper interprets the mechanism by which SMAPs influence SRM.