Does Being Green Pay Off? Green Intellectual Capital, Accounting, and Firm Value

Abstract

This study examines the influence of Green Intellectual Capital (GIC) and Green Accounting (GA) on Firm Value (FV), with Green Competitive Advantage (GCA) as a mediator. Using purposive sampling, 147 observations were collected from basic materials companies listed on the Indonesia Stock Exchange (IDX) for the 2020–2024 period. Data were analyzed using PLS-SEM. Findings reveal that both GIC and GA significantly enhance FV, indicating that green intellectual capital and environmental transparency serve as vital signals for investors. While GIC significantly strengthens GCA, GA has no significant effect on competitive advantage. Furthermore, GCA effectively mediates the relationship between GIC and FV, whereas its mediating role for GA was not supported. These findings align with Resource-Based View (RBV) theory, suggesting that green resources enhance market value when managed as unique strategic capabilities. Companies should optimize green intellectual assets and environmental reporting quality to strengthen competitiveness and achieve sustainable corporate value.