Green Accounting and Firm Value

Abstract

Objective - The environment is one of the more interesting issues to discuss, especially if it relates to companies' accounting issues. This study was conducted to determine the effect of green accounting implementation on firm value. Methodology/Technique – Firm value is measured using Tobins-Q, and green accounting is measured by ratings based on PROPER. Multiple regression analysis was used, and 35 manufacturing companies were sampled in this study. Findings - The results of this study show that green accounting can increase firm value. Companies that apply green accounting have a higher firm value because information about environmental costs is additional information for stakeholders when making decisions. If the company does not incur environmental costs, it is considered bad for investment. Novelty - Green accounting is still new, so this study was conducted to provide an overview of green accounting and firm value. Companies implementing green accounting will increase their firm value and help preserve the environment. It is hoped that Indonesian accounting organizations will develop standards regarding green accounting. Type of Paper: Empirical. JEL Classification: F64, L50, M14, Q52, Q56 Keywords: Green Accounting; Firm Value; Green Investment; PROPER; Indonesia Reference to this paper should be referred to as follows: Alexander, N. (2023). Green Accounting and Firm Value, Acc. Fin. Review, 7(4), 12 – 18. https://doi.org/10.35609/afr.2023.7.4(2)