Green Accounting and Green Intellectual Capital Practices: Study of The Influence of Indirect Financial Firm on Firm Value

Abstract

This study aims to develop and analyze the effect of green intellectual capital, green accounting and financial performance on firm value (price book value/PBV proxy), develop and analyze the effect of green intellectual capital and green accounting on firm value (price book value/PBVproxy) mediated by the financial performance of the Indonesian Biodiversity Sustainable and Responsible Investment (SRI) Index (KEHATI) for the 2015-2020 period. Novelty in this study developed by the concept of green intellectual capital and green accounting to reduce greenhouse emisions and pollution to increase firm value. The sample used is 75 samples from 14 stocks with purposes sampling method. Data collection is obtained through an annual report published on the IDX’s official website, that is www.idx.co.id and a sustainability report. The results showed that green intellectual capital (green human capital/GHC and green relational capital/GRC) had no significant effect on firm value (PBV proxy), green intellectual capital (GHC, and GRC) had a significant positive effect on financial performance (ROA proxy), financial performance (ROA proxy) has a negative affect on firm value (PBV proxy) and financial performance (ROA) is able to mediate green intellectual capital on firm value (PBV proxy).