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. Utilizing purposive sampling, ten companies listed on the Indonesia Stock Exchange during 2020-2023 were analyzed through multiple regression techniques. Environmental performance, measured via PROPER ratings, demonstrates 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 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.