The role of sustainability balanced scorecard and business risk information on green business investment decisions: evidence from Indonesia

This study examines the role of a sustainability balanced scorecard and business risk information on green business investment decision-making. There is a paradigm shift in investment decision-making from traditional performance information to environmental performance-oriented information toward the planet, people, and profit. Shifting from strategic decision-making based on traditional financial and non-financial aspects (Balanced Scorecard/BSC) to strategic decision-making based on environmental sustainability (Sustainability Balanced Scorecard/SBSC). Integrating legitimacy theory and prospect theory will make decisions that balance the need to maintain legitimacy with the desire to minimize losses and maximize gains. This study adopts a true experiment with a 2 x 3 factorial design between subjects. The participants of this study are undergraduate accounting and management students in Jakarta, Indonesia. The data analysis method used an analysis of variance (ANOVA). The study results show that SBSC encourages green business investment decisions more than BSC. This study also proves that low business risk encourages green business investment decisions rather than high business risk. There is an interaction effect between SBCS and business risk on green business investment decisions. This study contributes to the behavioral management accounting literature by using the information on sustainability balanced scorecards and risk business in green business investment decision-making.