The Effect of Green Accounting, Intellectual Capital, Carbon Emission Disclosure, and Leverage on Corporate Financial Performance in Basic Material Sector Companies Listed on the Indonesia Stock Exchange in 2021-2024

Abstract

This study aims to examine the effect of green accounting, intellectual capital, carbon emission disclosure, and leverage on the financial performance of basic materials sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period. This research employed a quantitative approach using secondary data. The sample was selected through purposive sampling, resulting in 168 observations from 42 companies. After removing 19 outlier observations due to normality issues, the final sample consisted of 149 observations from 41 companies. The data were analyzed using panel data regression with EViews 13. The results indicate that green accounting and carbon emission disclosure have no significant effect on financial performance. In contrast, intellectual capital has a significant positive effect, while leverage has a significant negative effect on corporate financial performance. These findings suggest that effective management of intellectual capital enhances corporate value creation. Conversely, the suboptimal use of debt financing indicates that the benefits of leverage, including tax savings, are insufficient to offset interest expenses and financing risks. As a result, leverage in this study negatively affects corporate financial performance. Furthermore, green accounting practices and carbon emission disclosure have not been able to improve financial performance because their implementation remains largely compliance-oriented and requires relatively high costs. The findings of this study are expected to enrich the literature on the determinants of corporate financial performance in the basic materials sector and provide insights for management in optimizing the utilization of intellectual capital, capital structure, and the implementation of sustainability practices.