The Influence of Green Accounting and Corporate Social Responsibility (CSR) on Firm Value

Abstract

This study aims to analyze the impact of Green Accounting implementation and Corporate Social Responsibility (CSR) disclosure on firm value, proxied by Return on Equity (ROE). Employing a quantitative approach with a descriptive-verificative method, the research population comprises all issuers in the property and real estate sub-sector listed in the Ministry of Environment and Forestry’s (KLHK) Company Performance Rating Program in Environmental Management (PROPER). Using purposive sampling, 10 corporate entities were selected over a five-year observation period (2021–2025), yielding 50 panel data observations. Data were extracted from integrated financial reports, sustainability reports, and official KLHK decrees, then processed using multiple linear regression via IBM SPSS software. Descriptive analysis classified the issuers' implementation of Green Accounting and CSR as falling within the "moderate" category. Partial hypothesis testing (t-test) revealed that Green Accounting has a significant negative effect on firm value (sig. 0.001 < 0.05). Similarly, the CSR disclosure variable was found to negatively affect return on equity (sig. 0.030 < 0.05). However, simultaneous testing (F-test) showed that both instruments significantly influence firm value (sig. 0.000 < 0.05), with a coefficient of determination (R²) of 35.1%. This phenomenon of negative correlation confirms the applicability of agency theory in the short term, wherein the capitalization of environmental restoration costs and the allocation of social funds act as expenses that reduce net profit for conventional shareholders.