The Effect of Green Accounting and Environmental Performance on Profitability

Abstract

The purpose of this study is to examine the effect of Green Accounting and Environmental Performance on profitability. The population of this study used mining, basic industry, and chemical companies listed on the Indonesia Stock Exchange (IDX) in 2023. The sample in this study used a purposive sampling method with a sample size of 42 companies. The data used came from financial reports that can be downloaded from www.idx.co.id. Hypothesis testing uses multiple regression analysis. Data analysis uses SPSS 26 software. The results of the study show that Green Accounting has an effect on profitability. Environmental Performance does not affect profitability because not all investors consider Environmental Performance as an indicator in investing because good environmental performance does not necessarily indicate that a company can provide benefits to investors. Because Environmental Performance cannot motivate company management to increase profitability. Investor decision making does not only focus on the company's Environmental Performance, such as having to pay attention to stock prices, dividends, and capital structure when investing their shares.