Green Accounting and Disclosure of Sustainability Report on Firm Values in Indonesia

Astari, Tri Ayu; Laurens, Sebastianus; Wicaksono, Aries; Sujarminto, Aditya

doi:10.1051/e3sconf/202342602024

Cited by 1 publication

(1 citation statement)

References 18 publications

(17 reference statements)

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“…Additional studies have shown conflicting findings, suggesting that green accounting may have a detrimental impact on business value. These conclusions are supported by the research conducted by (Astari et al, 2023;Lindawati et al, 2023;Nuswandari et al, 2019;Sukmadilaga et al, 2023).…”

Section: Introductionsupporting

confidence: 64%

Effect of Green Accounting, Leverage, Firm Size on Firm Value With Profitability as Intervening Variable

Hutabarat

2024

J. Professional Business Review

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Purpose: This study investigates how green accounting practices, leverage (debt levels), and company size influence profitability and ultimately firm value. The research focuses on companies listed in the Jakarta Islamic Index (JII). Previous research on these relationships has yielded mixed and inconsistent results. They point out that few studies have examined these variables together in a single model. This study aims to address this gap by creating a new model that explores the combined effects of green accounting, leverage, and size on profitability, and ultimately, firm value within the JII context. Theoretical Framework: This research is grounded in two key theories: stakeholder theory and signaling theory. While past empirical studies haven't yielded definitive results, this research offers a fresh perspective. The novel model developed in this study builds upon existing knowledge by examining how several previously linked variables interact and influence firm performance. Design/Methodology/Approach: This research employed a descriptive approach, analyzing financial data from company annual reports. To understand the relationships between the variables, a statistical technique called Structural Equation Modeling (SEM) was used. The study focused on companies listed on the Jakarta Islamic Index (JII) of the Indonesian Stock Exchange between 2019 and 2022. A 120-sample size from 30 companies was chosen strategically using a purposive sampling method from the JII. Result and Discussion: This study found that leverage (debt) and company size have a positive and statistically significant impact on profitability. Interestingly, green accounting practices did not have a clear influence on firm value. There was a negative effect, but it wasn't statistically significant. Firm size itself also did not directly affect firm value in a statistically significant way. However, profitability itself has a strong and positive impact on firm value. Additionally, profitability can act as an indirect factor, mediating the relationship between leverage and firm value. Based on these results, the study recommends that companies listed on the Jakarta Islamic Index (JII) consider strategic use of debt financing. This can be a way to improve profitability and ultimately attract investors, leading to a higher firm value. Originality/Value: This research introduces a novel model that investigates the interconnected effects of several variables with proven relationships.

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Section: Introductionsupporting

confidence: 64%

Effect of Green Accounting, Leverage, Firm Size on Firm Value With Profitability as Intervening Variable

Hutabarat

2024

J. Professional Business Review

View full text Add to dashboard Cite

show abstract

Green Accounting and Disclosure of Sustainability Report on Firm Values in Indonesia

Cited by 1 publication

References 18 publications

Effect of Green Accounting, Leverage, Firm Size on Firm Value With Profitability as Intervening Variable

Effect of Green Accounting, Leverage, Firm Size on Firm Value With Profitability as Intervening Variable

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