Green Accounting, Corporate Governance, and Firm Value: The Moderating Role of Profitability in Indonesian Mining Companies
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This study aims to examine the effects of Green Accounting and Good Corporate Governance (GCG) on firm value, with profitability serving as a moderating variable, in mining companies listed on the Indonesia Stock Exchange during the 2021–2023 period. A quantitative approach with a causal research design was employed using secondary data obtained from annual reports, sustainability reports, and financial statements. The sample consisted of 42 firm-year observations selected through purposive sampling. Data were analyzed using Moderated Regression Analysis (MRA) with IBM SPSS Statistics 27. The findings indicate that Green Accounting has a positive and significant effect on firm value, suggesting that greater environmental accountability and sustainability disclosure enhance investor confidence and corporate market value. Conversely, Good Corporate Governance has a significant negative effect on firm value, implying that governance practices in the mining sector have not yet been fully translated into value creation. Furthermore, profitability positively moderates the relationship between Green Accounting and firm value but does not moderate the relationship between Good Corporate Governance and firm value. These findings highlight the importance of integrating sustainability-oriented accounting practices with strong financial performance to enhance corporate value. The originality of this study lies in simultaneously examining the effects of Green Accounting and Good Corporate Governance on firm value by incorporating profitability as a moderating variable in the Indonesian mining industry, thereby extending the application of Stakeholder Theory, Legitimacy Theory, and Signaling Theory in explaining sustainable corporate value creation.
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