Does Green Accounting Affect Firm Value? Evidence from ASEAN Countries

Abstract

The purpose of this study is to examine whether green accounting influences firm value on companies in the ASEAN countries that have won the Asia Sustainability Reporting Awards 2021. The study utilized the exploratory quantitative method using secondary data, namely financial reports, sustainability reports, and ESG Scoring on the respective company websites of 15 Companies that have won the Asia Sustainability Reporting Awards 2021. Based on the observation years 2017-2021 of the published annual reports, this study shows that application of green accounting reporting with the dimensions of energy consumption have no significant effect on firm value using the Economic Creation Value Added (EVA) as proxy. This study shows that application of green accounting reporting with the dimensions of water consumption has a significant negative effect on EVA creation from companies in the Asia Sustainability Reporting List Awards. This study also shows that application of green accounting reporting with emission dimensions has a significant effect at a significance level of 10% with a positive direction towards EVA creation from companies in the Asia Sustainability Reporting List Awards. The findings in this study shed some lights on the importance of green accounting towards firm value of public listed companies in the ASEAN countries. The findings in this study are expected to be able to make a positive contribution to stakeholders’ interests and policies relating to other financial information required by stakeholders.

Keywords

• green accounting; economic value added, EVA, firm value, ASEAN