The Impact of Green Accounting and Environmental Performance on Financial Performance of Indonesian Textile Companies

Abstract

This research investigates how green accounting practices and environmental performance influence financial outcomes in textile and apparel firms listed on the Indonesia Stock Exchange during 2020-2022. Employing purposive sampling, the study analyzes 13 companies over three years using IBM SPSS Statistics 26. Results demonstrate that green accounting significantly enhances financial performance (t=5.019, p<0.05), while environmental performance also shows positive influence (t=2.728, p<0.05). The simultaneous effect of both variables proves significant (F=14.217, p<0.05), with a combined explanatory power of 41%. These findings suggest that integrating environmental considerations into accounting practices and improving environmental management create synergistic effects that enhance profitability. Companies adopting sustainable business practices can achieve the dual objectives of environmental responsibility and improved financial returns.