The Impact of Environmental Accounting on Firm Value: Evidence from Indonesian Manufacturing Firms

The objective of this study is to examine the impact of the implementation of environmental accounting on firm value in manufacturing companies. Specifically, the study will analyze how environmental costs, environmental performance, and the disclosure of environmental accounting information affect firm value. The research method employed is quantitative, with the collection of samples being carried out through the purposive sampling technique. A total of 130 data samples were collected from manufacturing companies that were listed on the Indonesia Stock Exchange during the 2018-2022 period. The data utilized in this study were derived from the company's annual report and sustainability report, which were subsequently subjected to multiple linear regression analyses using the Eviews 12 application. The disclosure of sustainability reports will adhere to the 2016 GRI Standard, which encompasses a total assessment of eight items. The findings indicated that environmental costs and the disclosure of environmental information did not exert a substantial impact on firm value. Conversely, environmental performance outcomes demonstrated a significant influence on firm value. It is imperative that companies include a detailed account of their corporate social responsibility activities, particularly those pertaining to the environment, within their annual and/or sustainability reports. This practice will contribute to enhancing the quality of accounting information within the corporate environment.