Indonesian Journal of Law and Economics Review
Vol 19 No 2 (2024): May
Environmental Law

Green Accounting Fails to Enhance Financial Performance in Indonesia
Akuntansi Hijau Gagal Meningkatkan Kinerja Keuangan di Indonesia


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  • Ayunia Suci Indiani,
  • Hadiah Fitriyah*
Hadiah Fitriyah
Universitas Muhammadiyah Sidoarjo, Indonesia *

(*) Corresponding Author
Picture in here are illustration from public domain image or provided by the author, as part of their works
DOI: https://doi.org/10.21070/ijler.v19i2.1063
Published May 27, 2024
Keywords
  • Green Accounting,
  • Environmental Disclosure,
  • Financial Performance,
  • Company Characteristics,
  • IDX
How to Cite
Indiani, A. S., & Fitriyah, H. (2024). Green Accounting Fails to Enhance Financial Performance in Indonesia. Indonesian Journal of Law and Economics Review, 19(2), 10.21070/ijler.v19i2.1063. https://doi.org/10.21070/ijler.v19i2.1063

Copyright (c) 2024 Ayunia Suci Indiani, Hadiah Fitriyah

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

This study examines the impact of green accounting and company characteristics on financial performance through environmental disclosure for manufacturing and consumer goods companies listed on the Indonesia Stock Exchange (IDX) from 2017-2020. Using a sample of 17 companies selected via purposive sampling, secondary data were analyzed with Partial Least Square (PLS). The results indicate that green accounting and company characteristics positively influence environmental disclosure, but do not affect financial performance through it. Additionally, environmental disclosure does not impact financial performance. These findings suggest that while environmental reporting is enhanced by green accounting and company traits, it does not directly improve financial outcomes.

Highlight:

  1. Green accounting and company traits boost environmental disclosure.
  2. Environmental disclosure doesn’t affect financial performance.
  3. Focus: manufacturing and consumer goods firms on IDX (2017-2020).

Keywords: Green Accounting, Environmental Disclosure, Financial Performance, Company Characteristics, IDX

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