Mediation Analysis of Financial Performance in the Influence of Green Accounting on Company Value

Abstract

This study aims to determine and analyze the effect of Green Accounting implementation on Company Value with Financial Performance as a mediating variable. Amidst growing concerns about current global trends and demands for environmental transparency, companies no longer focus solely on profit, but also on environmental and social responsibility. The research method used is a quantitative approach with PLS-SEM analysis. The research population includes industrial sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2020 2024. Sample selection was carried out using purposive sampling techniques, resulting in a number of companies that consistently publish sustainability reports. The results of this study indicate that green accounting does not have a significant effect on company value or financial performance. Furthermore, financial performance does not act as a mediator in this relationship. These findings confirm that companies need to improve the substantive quality and reporting of green accounting in order to increase profitability and market perception, as well as encourage further research. Transparency in the disclosure of environmental information will reduce information asymmetry between management and investors, thereby reducing uncertainty risks for shareholders. Responsible and future oriented entities. This implies that for company management, investing in environmental aspects is not merely a cost burden, but rather a long-term strategy to increase competitiveness and market value. In addition to supporting the strengthening of environmental reporting policies, it also creates a business ecosystem. Novelty and encourages further research by incorporating other variables to enrich understanding of the factors that influence company value in the context of sustainability.