Reciprocal effect of earnings quality and tax compliance on green manufacturing's transformation for establishing investment portfolio “maximum” returns

This study examines the essential roles of earnings quality and tax compliance in identifying highly sustainable businesses; this newly shifted environmental paradigm has been a promising opportunity for superior business growth. We test the impact of quality measurement on the transformation of green manufacturing (GM) in the ASEAN community, thus highlighting broader market-share gains and the adoption of high-tech. Purposive sampling using a moderating panel-data regression and robustness checks of listed manufacturing companies in Indonesia, Vietnam, and Thailand from 2012 to 2024 yielded 586 firms in total. The challenge of GM processes is systematically addressed through flexible financing at low capital costs. Empirically, the findings demonstrate managerial competence in creating “marketable" innovation and in forming a concentrated market with low-intensity triggers, leading to a “long" position as a “confidence" response to the “readability" of environmental, social, and governance (ESG) disclosure. Specifically, our analysis of each capital market is supported by the recommended public policy, which distinguishes between highly prospective and underperforming firms by requiring compliance with accounting standards and tax regulations. The regulator's attention should be focused on quality measurement as a protective public policy and on “prudence" accounting treatments, with the adoption of the international standard for ESG disclosure prioritized to maintain high trust in a secure, safe capital market investment. Finally, the rationality perspective is supported by the payoff matrix and portfolio-optimization AI modeling, which demonstrate the avoidance of a total loss.