THE EFFECT OF GREEN ACCOUNTING AND CORPORATE SOCIAL RESPONSIBILITY ON COMPANY VALUE WITH FINANCIAL PERFORMANCE AS A MEDIATION VARIABLE IN THE BASIC AND CHEMICAL INDUSTRY SECTORS ON THE INDONESIA STOCK EXCHANGE (IDX) (PERIOD 2023–2024)

Abstract

This study examines the effects of green accounting and corporate social responsibility (CSR) on firm value and tests financial performance as a mediating variable. The population comprises basic and chemical industry companies listed on the Indonesia Stock Exchange in 2023–2024. Purposive sampling produced 42 firm-year observations. Green accounting is measured by the natural logarithm of environmental costs, CSR by a disclosure index based on 119 Global Reporting Initiative indicators, financial performance by return on equity (ROE), and firm value by price-to-book value (PBV). The data were analyzed using descriptive statistics, classical assumption tests, path analysis, and the Sobel test. The results show that green accounting, CSR, and ROE do not have significant direct effects on firm value. Green accounting and CSR also do not significantly affect ROE. The reported indirect-effect evidence does not consistently support financial performance as a mediator, particularly because the constituent paths are insignificant and the CSR indirect effect is not significant. These findings indicate that sustainability spending and disclosure were not yet priced by investors during the short observation period. Companies should therefore connect environmental and social initiatives to measurable operational efficiency, risk reduction, and long-term financial outcomes rather than treating them primarily as compliance disclosures.