Impact of Green Accounting, Sustainability Reporting, and Profitability on Indonesian Energy Firm Value

Abstract

Growing sustainability awareness has compelled energy sector companies to integrate environmental and financial factors to enhance firm value. This study aims to analyse the impact of green accounting, sustainability reporting, and profitability on the firm value of energy sector companies listed on the Indonesia Stock Exchange (IDX) over the 2022–2024 period.  This study adopted a quantitative approach using secondary data drawn from the annual reports and sustainability reports of 44 energy sector companies. Data were analysed using multiple linear regression with SPSS. Green accounting has no significant effect on firm value. Sustainability report disclosure shows a statistically significant negative effect, whereas profitability exerts a significant positive influence on firm value. Simultaneously, all three variables exert a significant combined effect on firm value. Investors in the energy sector remain predominantly focused on financial performance metrics rather than sustainability disclosures. Broader disclosures are not necessarily received positively by the market unless accompanied by tangible economic performance improvements. Nevertheless, both financial and sustainability-related factors jointly contribute to determining a company's market value.