Integrated Financial and Legal Governance in Chemical Production Systems: A Risk-Informed Model Based on Cost Accounting and Regulatory Compliance

The purpose of this study is to design an integrated financial–legal governance model within the chemical production cycle; a model that incorporates three critical components—cost accounting, risk management, and regulatory compliance—into a coherent framework capable of addressing financial complexities, operational risks, and legal requirements inherent in this high-risk industry. The research adopts a descriptive–survey design based on a quantitative approach. Data were collected through a researcher-developed questionnaire administered to financial managers, production managers, safety officers, and legal experts. The data were analyzed using Structural Equation Modeling (SEM) to examine both direct and indirect relationships among variables. The results indicate that risk management exerts the strongest direct impact on financial governance. Compliance with safety and environmental standards also plays a decisive role in strengthening firms’ financial structures. Furthermore, cost accounting demonstrates a positive and statistically significant effect on financial governance. The findings reveal that integrating the three aforementioned domains enhances financial transparency, reduces unforeseen costs, prevents legal disputes, and improves organizational sustainability. The added value of this research lies in presenting an innovative and integrated framework that may serve as a decision-making foundation for high-risk industries such as petrochemical and refinery sectors, while contributing to interdisciplinary literature in finance, risk, and law.