The Effect of Green Accounting and Corporate Social Responsibility Implementation on the Financial Performance of Energy Sector Companies Listed on the Indonesia Stock Exchange

Abstract

This study is urgent because understanding how green accounting and CSR affect financial performance can support sustainable business practices in energy sector companies. This study aims to analyze the impact of Green Accounting and Corporate Social Responsibility (CSR) implementation on the financial performance of energy sector companies listed on the Indonesia Stock Exchange during the 2019-2024 period. A quantitative approach was employed using secondary data obtained from financial statements, annual reports, and corporate sustainability reports. The study population consisted of 91 energy sector companies. Through purposive sampling, a sample of 10 companies was selected for a six-year observation period. Green Accounting was measured using a dummy variable, CSR was measured using the CSR Disclosure Index based on GRI G4 guidelines, and financial performance was measured using Return on Assets (ROA). Analysis was conducted using EViews, involving panel data model selection tests (Chow, Hausman, and Lagrange Multiplier tests) and hypothesis testing (t-test, F-test, and coefficient of determination). The results indicate that Green Accounting has a positive and significant effect on financial performance, with a coefficient of 63,110.1385, a t-statistic of 2.534317, and a probability of 0.0141. CSR showed a coefficient of -6,920.1940, a t-statistic of -0.245974, and a probability of 0.8066, indicating no significant effect on financial performance. Simultaneously, Green Accounting and CSR significantly influenced financial performance, with an F-statistic of 3.213313 and a probability of 0.047743. The Adjusted R-squared value of 0.070909 indicates that the model explains 7.09% of the variation in financial performance. The findings demonstrate that, on an individual basis, Green Accounting implementation has a stronger relationship with financial performance than CSR, while the combined integration of Green Accounting and CSR shows a significant relationship with the financial performance of energy sector companies.