The Effect of Green Accounting, Size, and Leverage on Firm Value: The Role of Profitability

Abstract

This research addresses a significant research gap in green accounting, company size, leverage, and firm value. A factor that is thought to influence the gap is differences in profitability. This study aims to determine the role of profitability on the effect of green accounting, company size, and leverage on firm value. The research object is manufacturing companies in the energy sector and basic materials for 4 (four) years from 2018 to 2023, which were selected based on a purposive sampling method. The testing and analysis method used was multiple linear regression analysis and moderated regression analysis. The results indicate that green accounting has a positive effect on firm value. Leverage has a negative effect on firm value. Meanwhile, company size has no effect on firm value. In addition, profitability is able to strengthen the positive effect of green accounting on firm value. Profitability is able to weaken the negative effect of leverage on firm value. Meanwhile, Profitability is not able to moderate the positive impact of company size on firm value.