THE EFFECT OF GREEN ACCOUNTING AND ENVIRONMENTAL PERFORMANCE ON FINANCIAL PERFORMANCE AS MEASURED BY ROA IN MANUFACTURING INDUSTRY COMPANIES LISTED ON THE IDX IN THE 2021-2024 PERIOD

Abstract

This study aims to analyze the influence of green accounting and environmental performance on the financial performance of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2024 period. This study uses a quantitative approach with secondary data obtained from annual reports, corporate performance reports, and publications of the Corporate Performance Rating Program in Environmental Management (PROPER). The sample was selected using a purposive sampling method, resulting in 13 manufacturing companies that met the study criteria. Data analysis was performed using multiple linear regression. The results show that green accounting has a positive effect on financial performance, indicating that the implementation and dissemination of environmental activities can increase stakeholder trust and company operational efficiency, thus impacting profitability. Furthermore, environmental performance, as measured by the PROPER rating, also has a positive effect on financial performance, implying that companies with good environmental performance tend to gain a better reputation and support from investors, thus improving their financial performance.