The Effect of Technology Utilization, Internal Control Systems, and Environmental Costs on Financial Reporting Quality

Financial reporting quality is essential for ensuring transparency, accountability, and the reliability of financial information in hospital management. However, the extent to which technology utilization, internal control systems, and environmental cost management contribute to financial reporting quality requires further empirical examination. This study aims to analyze the effects of technology utilization, internal control systems, and environmental costs on financial reporting quality at Rosela Hospital, Karawang, Indonesia. A quantitative approach was employed using a questionnaire-based survey involving employees in finance, accounting, and administration selected through purposive sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The findings indicate that technology utilization and internal control systems do not have statistically significant effects on financial reporting quality, whereas environmental costs have a positive and significant effect. These results suggest that the availability of technology and internal control mechanisms alone may not be sufficient to improve financial reporting quality, while appropriate environmental cost management can contribute to more comprehensive and accountable financial information. This study concludes that hospitals should strengthen the identification, classification, recording, and reporting of environmental costs as part of their financial management practices. The practical impact of this research is to provide insights for hospital management into improving financial accountability and developing more transparent reporting practices. The findings should be interpreted in the context of the study’s limited scope, which focuses on a single hospital.