Environmental Performance and Green Accounting Effects on Firm Value in Indonesian Consumer Goods Sector

Abstract

This study investigates environmental performance and green accounting impacts on firm value within Indonesia's consumer goods sector. We used purposive sampling and multiple regression techniques to analyze ten companies listed on the Indonesia Stock Exchange between 2020 and 2023. The PROPER ratings measure of environmental performance shows a significant positive influence on firm value. Conversely, green accounting exhibits negative but statistically insignificant effects. The coefficient of determination reveals that these variables explain 20% of firm value variation, with the remaining factors attributed to unexamined variables. These findings contribute valuable insights for investors and management regarding sustainable practices' role in value creation and strategic decision-making processes.