The Effects of Green Accounting, Green Intellectual Capital, and Environmental Performance on Firm Value

Abstract

Growing pressure to implement sustainability practices and Environmental, Social, and Governance (ESG) principles has encouraged energy companies to integrate environmental considerations into their business strategies. Nevertheless, empirical evidence on the relationship between sustainability practices and firm value remains inconclusive, particularly in emerging markets. This study examines the effects of green accounting, green intellectual capital, and environmental performance on firm value among energy companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2025 period. A quantitative explanatory research design was employed using secondary data obtained from companies' annual reports and sustainability reports. The sample consisted of 17 companies, resulting in 68 firm-year observations selected through purposive sampling. Data were analyzed using multiple linear regression. The findings indicate that green accounting and green intellectual capital do not have statistically significant effects on firm value, whereas environmental performance has a negative and significant effect on firm value. These results suggest that sustainability-related information has not yet been fully incorporated into investors' valuation decisions within Indonesia's energy sector. This study contributes to the sustainability accounting and corporate finance literature by providing empirical evidence from an emerging market and offers practical implications for managers in aligning sustainability initiatives with operational efficiency and financial performance to enhance long-term firm value.