Does Green Accounting Strengthen the Link Between Environmental Performance and Firm Value?

Erlina Widayanti Djatnicka; Wisnu Setyawan; Benny Oktaviano; Shafa Amelia Putri

Autori

Erlina Widayanti Djatnicka Accounting, Pelita Bangsa University, Indonesia
Wisnu Setyawan Accounting, Pelita Bangsa University, Indonesia
Benny Oktaviano Accounting, Pelita Bangsa University, Indonesia
Shafa Amelia Putri Accounting, Pelita Bangsa University, Indonesia

Cuvinte cheie:

environmental performance, firm value, green accounting, panel least squares, ESG reporting, sustainability disclosure, financial performance, moderation analysis, corporate responsibility, sustainable finance

Rezumat

This study investigates the effect of environmental performance on firm value and explores the moderating role of green accounting in this relationship. Using panel data regression with the Panel Least Squares (PLS) method, data from selected publicly listed companies were analyzed over a specific period. The results demonstrate a significant and positive relationship between environmental performance and firm value, indicating that companies with better sustainability practices are more likely to achieve higher market valuations. Furthermore, the interaction between environmental performance and green accounting is also found to be statistically significant, suggesting that green accounting practices strengthen the influence of environmental performance on firm value. These findings support the growing importance of integrating environmental responsibility and transparent sustainability reporting into corporate strategy. The study provides valuable insights for policymakers, investors, and corporate leaders aiming to align environmental and financial performance in an increasingly ESG-driven market.