Green Accounting and Disclosure of Sustainability Report on Firm Values in Indonesia

. The industry must deal with environmental issues by implementing green accounting and disclosure of sustainability reports. This study aimed to determine the effect of implementing green accounting and disclosure of sustainability reports on firm value. The research was conducted in Indonesia Manufacturing companies with an observation period of 2019-2021. The data analysis technique used is Multiple Linear Regression Analysis. The study results show that applying green accounting has a positive effect on firm value, and disclosure of sustainability reports has a negative effect on firm value. The application of green accounting can significantly increase the company's value. However, the disclosure of the sustainability report shows a negative result because the company continues to improve its sustainability reports, but the increase is not in line with firm value.


Introduction
Scientists are holding demonstrations in various parts of the world to reveal the severity of the impact of climate change on the earth today.The background of the demonstration was the report released by Intergovernmental Panel on Climate Change (IPCC) which stated that currently the increase in the amount of carbon dioxide in the atmosphere was already at a dangerous level.The existence of industries is suspected as the initial cause of global warming, some researchers argue that global warming has slowly started to occur since the 19th century following the rise of the industrial revolution in the United States and other countries.Companies are currently trying to develop operating strategies for sustainable business management so that they can increase their positive long-term impact on society and the environment.One way is by companies getting more involved in environmental, social and governance (ESG) practices.In practice, the company's ESG activities require additional operational costs which are inconsistent with maximizing company value.However, ESG and green accounting are consistent with business sustainability because companies fulfill the interests of their diverse stakeholders, which will ultimately form a good corporate image and result in better financial performance [1].
Firm value is used as an indicator of how the market values the company as a whole.Firm value is the market price of the company's shares formed between buyers and sellers in transactions, the stock market price is considered a reflection of the true value of a company's assets [2].Firm value is one of the factors that investors pay attention in choosing a company to invest their capital in, because company value is related to stock prices.High corporate value will be followed by the prosperity of the shareholders, the wealth of shareholders and the company can be represented by the market price of the company's shares [3].However, currently there are still many companies that are only concerned with company profits without regard to the environmental impact caused by their business activities.This can be seen from the many cases of environmental pollution committed by several companies.
With increasing environmental problems, environmental accounting (green accounting) emerges as a solution to the problems between the environment with companies and the surrounding community.According to Hidayat [4] Green accounting is a practice that combines the principles of environmental management and conservation into reporting practices that include an analysis of costs and benefits.Thus, applying green accounting makes it possible to see the impact of practicing sustainable business strategies.Looking at the current state of the environment, investors are not only interested in financial reports that explain company profits, but are also interested in companies that run a business that refers to environmental, social and business governance (ESG) principles [5].
The impact on the activities carried out by the company on the economy, environment and social can be seen in the sustainability report.By issuing sustainability report, the company has shown its seriousness in maintaining environmental balance and sustainability, minimizing social inequalities and the economic welfare of the community, so that the community will give a good perception if the company is able to provide reciprocal relationships with the environment.According to Qureshi et al [6] by disclosing sustainability report shows good management implementation so as to increase the trust of stakeholders (stakeholders).
This research was conducted to see the effect of implementing Green Accounting and disclosure of sustainability report on firm value in manufacturing companies listed on the IDX.Manufacturing companies are companies whose business activities produce waste which can cause environmental pollution if not handled properly [7].The control variable used in this study is company size, the use of control variables in research to produce a more optimal analysis.

Literature Review
Stakeholder theory described that companies are not only responsible for maximizing profits for owners and investors or commonly referred to as shareholders but are also responsible for providing benefits to society, social environment and government which can be referred to as stakeholders.Relationships between companies and stakeholders are built based on beneficial concepts that build cooperation to be able to build a company's business continuity [8].Efforts made by the company to maintain relations with stakeholders and to safeguard the interests of the company have published a sustainability report [9].If the company ignores the interests of the stakeholders it can taint the company's public image, which can affect the firm's value.
Legitimacy theory asserts that companies continue to strive to ensure that they operate within the framework and norms that exist in the community or environment where the company is located [10], where they strive to ensure that their activities (companies) are accepted by society as something that " legal'.Without legitimacy, companies cannot survive regardless of how well their financial performance is.The two theories, both legitimacy theory and stakeholder theory, are theories that explain the motivation of managers or organizations to disclose sustainable reports.If stakeholder theory is motivated by accountability to stakeholders, legitimacy theory uses motivation to gain approval or acceptance from society [11].
By implementing green accounting, companies disclose all environmental costs, both internal and external, according to research conducted by [12] disclosing environmental costs is more attractive to investors because it addresses their environmental conditions.The application of green accounting can help companies take advantage of a growing market to increase the value of the company.According to research conducted by Erlangga, Fauzi, and Sumiati [13] the application of green accounting has a significant effect on firm value because it can provide a positive image and a sense of trust in stakeholders for the company's future sustainability, the results is in accordance with the research conducted by [14] in which the application of green accounting affects company value because applying green accounting can give a good reputation to the company.
[15] Corporate Social Responsibility Disclosure (CSRD) has an effect on increasing company value, because it has non-financial information which is an added value for investors.Research conducted by [16] states that disclosure of Sustainability Report has a significant influence on company value, because the disclosure of a GRI-based sustainability report can give a good reputation to the company so that it can affect company value.The results of this study are in line with the results of research conducted by [14] in which CSRD will provide a good image and reputation for the company to the investors, so they are interested in investing in companies that can increase company profitability.The greater the company's profit, the greater the company's ability to pay dividends, which has an impact on company value.
Due to the expanding interest of stakeholders not only to the firm's financial aspect and profit but also the company's effort to be more sustainable to the environment.Green accounting and CSRD discloses environmental costs and activités done by companies in order to have good reputation and improve company's public image among society which increases the firm's value.The following hypothesis can be determined: H1: The effect of applying green accounting has a significant positive effect on firm value H2: Disclosure of sustainability report has a significant positive effect on firm value

Research Methodology
This study uses a quantitative method using secondary data of manufacturing companies listed on the Indonesia Stock Exchange (IDX).The population used in this study were 146 manufacturing companies listed on the IDX.(5)

Number of companies that meet the sample criteria 19
Total Sample (19 companies x 3 periods) 57 Based on predetermined criteria showed in Table 1, a total of 57 data were obtained for research (19 companies x 3 years).This research was carried out by testing the hypothesis which was carried out using multiple linear regression analysis.
The variables in this study consisted of three types, namely dependent, independent and control variables.
A. The dependent variable (Y) in this study is firm value as measured using the Tobin's Q formula [17], namely: B. The independent variables in this study are green accounting (X1) and disclosure of sustainability report (X2).Green accounting is measured using the PROPER rating.The variable of sustainability reporting is measured through the Sustainability Report Disclosure Index (SRDI).SRDI assesses social responsibility according to the criteria according to the Global Reporting Initiative (GRI).The SRDI calculation is carried out using a dummy variable by giving a score of 0-1 for each indicator, namely: 1) A value of 0 is given if an indicator item is not disclosed.2) A value of 1 is given if an indicator item is disclosed.SRDI calculation formula: = C.The control variable used in this study is company size (SIZE).Company size is measured using the natural logarithm of the company's total assets.

Results and Discussion
In this study, descriptive statistical analysis was carried out to find out possible distribution patterns, if the standard deviation of a variable is higher, then the data in that variable is increasingly spread out from its average value.And vice versa, if the standard deviation of a variable is lower, then the data in that variable is increasingly collected at its average value.Table 3 showed the descriptive statistics results, and can be concluded that the data in this study are spread evenly because the standard deviation value of each variable is smaller than the average value.
Next, the classical assumption testing is used to ensure that the regression model is not biased so that the results of estimates or predictions can be trusted, for the regression equation used consists of normality tests, multicollinearity tests, autocorrelation tests, and heteroscedasticity tests and no problems are found.Source: Output SPSS 27 Table 4 showed that the data used in this study were normally distributed because the value was greater than 0.05, which was shown in the Asymp sig (2-tailed) score of 0.200.6 showed the results of the Glejser test in the significance column for the Green Accounting variable results of 0.151 which is above 0.05.The Sustainability Reporting variable is 0.303 which is above 0.05.The variable Size of 0.065 is above 0.05, which means that there is no heteroscedasticity and all variables are homoscedastic, or there is no similarity of variance in the residuals from one observation to another.7 showed that the Durbin Watson (DW) value in this study was 2.762.Because the number of samples used in this study was 57 with the independent variable being 3, the value in the Durbin Atson table was 1.6845, while the value 4-1.6845 was 2.3155.Therefore it can be concluded that 1.6845 < 2.262 < 2.3155 so that the results indicate that the data in this study did not experience autocorrelation.
Hypothesis testing was carried out using multiple linear regression analysis.Then an f test is carried out to find out whether the independent variables simultaneously have a significant effect on the dependent variable.Source: Output SPSS 27 Table 9 showed that the independent variables have an influence on the dependent variables simultaneously.The results of the regression analysis presented in table 9 show the F-count value of 14,354 while the F-table is 2,776, so the regression model can describe the independent variables jointly influencing the dependent variable.From table 10, it can be seen that the coefficient (R) is 0.670.This value indicates that the relationship between the green accounting, sustainability reporting, and size variables with firm value is stated to have a fairly strong relationship because it has a value of 0.670 > 0.50.
Meanwhile, the coefficient of determination in the Adjusted R-Square column is 0.417 or 41%.This means that the independent variables in this study, namely green accounting, sustainability reporting, and size, have an effect of 41% on firm value variables, then the remaining 59% are influenced by other independent variables not examined in this study.Based on the results of the tests that have been carried out, the following is a summary of the obtained results of the research hypothesis:

The Effect of Applying Green Accounting on Firm Value
Table 11 displays the results of the t test, it shows that the which has a positive direction, then the calculated t value is 5.83, which means it is greater than the t table value of 2.00247, indicating that the green accounting variable can influence firm value variable.The significance value shows a value of 0.000, which means it is lower than 0.05 and the t count is 5.83.This shows that the first hypothesis (H1) in this study is accepted, namely the green accounting variable has a positive effect on firm value.
It can be said that green accounting variables have a good influence on firm value variables.Companies that apply green accounting are considered to have high social responsibility with concern for the surrounding environment that is affected by the company's activities, therefore companies that have implemented green accounting certainly have a good PROPER rating.Environmental costs incurred by the company can be regarded as a long-term investment, because good environmental conditions and natural resources will affect the sustainability of a company, so that the value of the company can increase significantly.
The results of this study are in line with the results carried out by [13] the application of green accounting has a significant effect on firm value because applying green accounting can indirectly increase firm value because it can provide a positive image and a sense of trust in stakeholders for the company's sustainability in the future.The results of this study are also in accordance with the research conducted by [14] the application of green accounting affects company value because it can give a good reputation to the company.

Effect of Disclosure Sustainability Report on Company Value
Table 11 displays the results of the t test, it shows that the sustainability reporting variableof -3.71 which has a negative direction.The significance value shows a value of 0.000, which means it is lower than 0.05 and the t count is -3.71 which is greater than the t table value, which is 2.00247.It can be concluded that the sustainability reporting variable has an effect on firm value but in a negative direction.
Disclosure of Sustainability Report will help increase company transparency, strengthen risk management, encourage stakeholder involvement, and improve communication with stakeholders as found in [16] and [19] stating that Sustainability Reporting disclosures have a significant influence on the value of the company.
However, the results of this study show a negative direction because recently the company has continued to improve its sustainability report, this can be seen from the increase in the SRDI value of a company every year.However, the increase in SRDI value was not in line with the increase in company value due to the less stable economic conditions during 2019-2021.Based on data from the Central Statistics Agency (BPS), Indonesia experienced a contraction in economic growth in 2020 of -2.07 percent.This causes economic development in Indonesia to have an unstable movement.The changes that occurred were influenced by the Covid-19 pandemic.It can be concluded that the second hypothesis (H2) in this study is rejected, namely the disclosure of sustainability report variable has a positive effect on firm value.
Table 11 displays the results of the t test, it shows that the firm size variable has a significance value of 0.89, which means it is higher than 0.05.It can be concluded that the firm size variable does not effect firm value.The result of this study is in line with the results carried out by [20] and [21] firm with large value of asset does not guarantee the increase of investor's impression towards the firm, because they are focus on increasing their own profits.

Conclusion
From the discussion, observations, and results on research on the application of green accounting, and disclosure of sustainability report on the value of manufacturing companies listed on the IDX in 2019 -2021, it can be concluded as follows: 1) Green Accounting has a positive influence on firm value.This means that companies that apply green accounting will experience an increase in the company value.Good environmental conditions and natural resources will affect the sustainability of a company, so that the company's profitability can increase significantly which affects the firm's value.2) Disclosure of sustainability report influences and is statistically significant to firm value.But in a negative direction because during the study period there was an increase in the value of sustainability reporting disclosures but was not followed by an increase in firm value.
There are several limitations that interfere with the results of the analysis in this study, namely the number of observation years in this study is very short, only 3 years (2019-2022).And there are still many manufacturing companies that have not participated in the PROPER program and published sustainability report so the samples obtained were not many, namely only 19 companies.
The advice that can be given in this study is that the government can make rules to reinforce penalties for companies that do not comply with laws and regulations related to company obligations in protecting the environment, and make regulations that force companies to preserve the environment as a form of corporate responsibility for their economic activities that have an impact on the environment so that this responsibility is no longer voluntary but has become a necessity that must be fulfilled by all business sectors given the current alarming environmental conditions.Also, Companies that use the application of green accounting provides more detailed information in its financial statements so that the exact amount of costs incurred related to green accounting can be known.

Table 1 .
Sample Selection Criteria Data

Table 2 .
PROPER Rating Indicator

Table 3 .
Descriptive Statistical Analysis Results

Table 4 .
Normality Test Results

Table 5 .
Multicollinearity Test ResultsFrom Table5above it can be concluded that in the absence of multicollinearity in this study, it is shown in the results of a tolerance value greater than 0.10, namely the Green Accounting variable of 0.95, the Sustainability Reporting variable of 0.81 and the Size variable of 0.82.Whereas the VIF value shows a lower number than 10, namely the Green Accounting variable of 1.05, the Sustainability Reporting variable of 1.22 and the Size variable of 1.21.

Table 7 .
Autocorrelation Test Results

Table 8 .
Multiple Linear Regression Analysis Results

Table 8 ,
showed that the formula for the equation of multiple linear regression analysis: Firm Value variable (company value) has a coefficient value of -1.409.This shows that if all the independent variables (Green Accounting, Sustainability Reporting, and Size) have a value of 0, then the value of the dependent variable (Firm Value) is -1.409.

Table 9 .
Model Feasibility Test Results (Test F)

Table 10 .
Determination Coefficient Test Results

Table 11 .
Results of Individual Parameter Significance Test (Statistical Test t)