UNLOCKING VALUE THROUGH SUSTAINABILITY: ASSESSING THE IMPACT OF GREEN ACCOUNTING ON CORPORATE FINANCIAL PERFORMANCE WITH ESG SCORES AS A MEDIATING VARIABLE

Authors

  • Sastaviyana Yuliangga Accounting Program Student, Faculty of Economics, Universitas Terbuka, Indonesia
  • Dwi Fitra Arreski Accounting Program, Faculty of Economics, Universitas Terbuka, Indonesia

Keywords:

ESG Score, Financial Performance, Green Accounting, Indonesia Stock Exchange, Sustainability Reporting

Abstract

This research investigates the impact of implementing green accounting practices on the financial performance of corporations, with corporate reputation, proxied by ESG scores, as an mediating variable. Utilizing a quantitative methodology, this study analyzes secondary data sourced from the 2024 annual and sustainability reports of cross-industry companies listed on the Indonesia Stock Exchange. Green accounting is operationalized through four key dimensions: environmental cost disclosures, waste management, energy efficiency, and environmental investments. Financial performance is assessed utilizing ROA, while the mediating effect of ESG reputation is tested through path analysis and the Sobel test to evaluate both direct and indirect relationships. The findings aim to determine whether ESG performance amplifies the financial impact of sustainability practices and to offer strategic insights for firms seeking to balance environmental accountability with profitability.

Downloads

Published

2025-09-15

Issue

Vol. 2 No. 1 (2025): Thematic On Accounting

Section

Articles