The Effect of Green Accounting, Profitability, and Firm Size on the Firm Value of Energy Companies Listed on the IDX From 2020 To 2024

Abstract

This paper summarizes a quantitative study examining whether green accounting, profitability, and firm size influence the market value of energy companies listed on the Indonesia Stock Exchange (IDX) during 2020-2024. The research problem arises from the tension between environmental responsibility and financial performance in the energy sector, where firms are expected to create shareholder value while managing environmental impacts. The study uses firm value as the dependent variable, measured by Tobin's Q. Green accounting is measured by Environmental Expenditure, profitability by Return on Assets (ROA), and firm size by the natural logarithm of total assets. Secondary data were collected from annual financial reports and analyzed using panel data regression with EViews 10. The sample consists of 25 energy companies over five years, producing 125 firm-year observations. Model selection tests indicate that the Random Effects Model is the most appropriate estimation model. The findings show that green accounting has a negative but insignificant effect on firm value. In contrast, profitability and firm size have positive and significant effects on firm value. These results suggest that investors in the energy sector still respond more strongly to financial performance and asset scale than to environmental expenditure disclosure. The study contributes by providing updated empirical evidence for the post-pandemic energy sector in Indonesia and by clarifying the relative importance of environmental and financial indicators in shaping market value.