The Effect of Green Accounting, Firm Size, and Carbon Emission Disclosure on the- Financial Performance of Energy Sector Companies Listed on the Indonesia Stock Exchange (BEI) in 2019- 2023

Abstract

This study examines the influence of green accounting, firm size, and carbon emission disclosure on financial performance of companies in the energy sector listed on the IDX from 2019 to 2023. Green accounting is an accounting approach that incorporates the measurement of environmental costs and performance as part of evaluating a company's performance. In this study, green accounting is measured by comparing corporate social responsibility (CSR) costs to the company's annual net profit. Firm size is a scale that classifies the magnitude of a business entity based on total assets, sales volume, or stock market value. In this study, firm size is measured based on the total asset value. Carbon emission disclosure is a form of corporate social responsibility (CSR) presented in the annual report and sustainability report. The measurement method refers to five thematic categories with a total of 18 disclosure items. The dependent variable in this study is financial performance, measured based on Return on Assets (ROA). The population of this study is energy sector companies because it is one of the sectors that is relatively closely related to the environment. The data was obtained from annual and sustainability reports and analyzed using multiple linear regression. The data processing results show that green accounting has no effect on financial performance, firm size has a positive effect on financial performance, and carbon emission disclosure has a negative effect on financial performance. This study provides insights for stakeholders in promoting the sustainability of the energy sector