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

Abstract

The industry must deal with environmental issues by implementing green accounting and disclosure of sustainability reports. This study aimed to determine the effect of implementing green accounting and disclosure of sustainability reports on firm value. The research was conducted in Indonesia Manufacturing companies with an observation period of 2019-2021. The data analysis technique used is Multiple Linear Regression Analysis. The study results show that applying green accounting has a positive effect on firm value, and disclosure of sustainability reports has a negative effect on firm value. The application of green accounting can significantly increase the company’s value. However, the disclosure of the sustainability report shows a negative result because the company continues to improve its sustainability reports, but the increase is not in line with firm value.