THE EFFECT OF GREEN INVESTMENT AND RETURN ON ASSETS ON FIRM VALUE (Study on Banks Listed in the SRI-Kehati Index for the period 2019 to 2024)

Abstract

Company value is very important for companies that have gone public because high company value encourages the desire for business. The step taken to increase the value of the company is for the company to contribute to society and the environment. For this reason, in banking it is necessary to have environmentally friendly bank practices (green investment) and return on assets. This study aims to determine the effect of green investment and return on assets on firm value in banks listed on the SRI-Kehati Index for the period 2019 to 2024. Disclosure of Green Investment as a variable projected by the calculation of environmental costs incurred with total assets, variables related to firm value projected by Price to Book Value. This research is quantitative research with secondary data in the form of published annual reports. Data samples were obtained using saturated sampling techniques and multiple regression data analysis. The results showed that partially green investment has no effect on firm value and return on assets has a significant effect on firm value. Simultaneously green investment and return on assets have a positive effect on firm value. Future research can use financial performance variables that focus more on the long term on firm value and the addition of data from the latest year.