The Impact of Management Accounting Systems on Corporate Sustainability: An Empirical Study

Abstract

This study investigates the impact of Management Accounting Systems (MAS) on corporate sustainability performance through a quantitative, cross-sectional analysis of responses from 335 management accounting professionals across multiple industries. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the research explores how key MAS components such as budgeting sophistication, performance measurement systems, and sustainability reporting integration contribute to environmental, social, and financial outcomes. The findings reveal that embedding sustainability metrics into MAS significantly enhances sustainability performance, particularly when supported by enabling factors like organizational culture, digital data capabilities, and high governance quality. Mediation analysis confirms that culture and digital readiness are vital mechanisms linking MAS use to performance, while moderation analysis shows governance amplifies these relationships. The study demonstrates strong explanatory and predictive validity, offering practical insights for firms aiming to align accounting infrastructure with sustainability goals. It contributes to the growing literature advocating for MAS as strategic tools that extend beyond traditional financial control to support ESG objectives. The research provides actionable recommendations for integrating sustainability into MAS design, enhancing organizational culture, and leveraging technology to enable data-driven sustainability management. These insights are especially relevant as regulatory bodies increasingly mandate robust ESG disclosures and internal sustainability controls.