The impact of disclosure of green accounting information on company performance on the Indonesia Stock Exchange

Abstract

This study examines how disclosing green accounting information affects company performance. The data involves 43 companies listed on the Indonesian Stock Exchange (IDX) during 2019-2022. The data consists of the disclosure of qualitative information (number of report pages needed to describe each corporate social responsibilities (CSR) activity), quantitative green accounting disclosures (presence of tables detailing and comparing each activity), the volume of disclosure (number of pages of the annual report assigned to CSR), the business sector contribution to environmental damage, and company performance. Data were analyzed using linear regression. The results show that the ratio of the number of pages per activity has a negative effect. In contrast, the number of pages positively affects company performance. Meanwhile, a specific table has a positive effect only on ROE. Therefore, this study concludes that companies must develop green accounting as a quantitative approach to maintain company performance.