The Effect of Environmental Accounting Disclosure and Environmental Performance on Company Value

Abstract

This study analyses how environmental accounting disclosure and environmental performance affect partially and simultaneously on Company Value. The focus of the research is companies listed in the LQ-45 index during the 2019-2023 period. This study uses quantitative data with secondary sources analysed by the panel data regression method with the help of the Econometric views 12 data processing application. The stages of analysis include descriptive analysis, classical assumption test, and hypothesis testing. The research sample was obtained through purposive sampling technique, resulting in 11 companies at the initial stage. However, there is one company with extreme data so that outliers are made. The total sample became 10 companies with an observation period of 5 years, resulting in 50 observations to be the basis of empirical analysis. The research findings show that environmental accounting disclosure has a significant positive effect on Company Value. Conversely, environmental performance is found to have a negative effect on Company Value. Nevertheless, simultaneously both  variables have an influence on Company Value. The panel data regression model developed in this study shows a coefficient of determination (R2) value of 17% where the two independent variables can explain the dependent variable by 17%, while the remaining 83% is influenced by other factors outside the research model.