Impact of Green Accounting, Environmental Performance, and Company Size on theProfitability of the Energy Sector: A Study of Indonesian Companies (2019-2023)

Abstract

The energy sector is an economic sector that requires large capital investments. In conducting their activities, investors will look at the profitability of a company when investing their capital. The energy sector is one of the contributors to state revenue that attracts investors. However, the activities carried out by companies in this sector have environmental impacts, which affect their profitability. In efforts to account for the environment, the field of accounting that plays an important role is green accounting. Green accounting is not the only aspect that determines profitability; environmental performance is equally important. Companies that consistently demonstrate both qualities will enhance their value in the public. The purpose of this research is to assess the impact of green accounting, environmental performance, and company size on the profitability of the energy sector listed on the Indonesia Stock Exchange from 2019-2023, utilizing secondary data from annual reports and sustainability reports. The sample size consists of 13 companies using a purposive sampling approach. The approach used is a quantitative method, with statistical testing using Eviews, involving data analysis that includes
descriptive analysis, panel data regression analysis, classica assumption test analysis, and hypothesis testing. The results of the study show that, partially, environmental performance and company size affect profitability, but green accounting does not. This research is expected to be used by companies to evaluate the implementation of green accounting and environmental performance in order to enhance environmental interests, achieve a good corporate image, and generate profits in line with the company's objectives by conducting environmental activities.