Green accounting, profitability, and firm value: empirical evidence from PT Bukit Asam Tbk

Abstract

Purpose: to examine the effect of green accounting, proxied by the Proper rating, and profitability, measured by return on equity (ROE), on firm value, measured using price to book value (PBV), at PT Bukit Asam Tbk.

Method: this study employs a quantitative research approach using secondary data obtained from the annual financial reports and sustainability reports of PT Bukit Asam Tbk for the 2019–2023 period. Firm value is measured using price-to-book value (PBV), green accounting is proxied by the Proper rating, and profitability is measured by return on equity (ROE). The data are analysed using multiple linear regression, and statistical testing is conducted in SPSS.

Findings: the results of this study indicate that green accounting and profitability do not have a significant effect on firm value at PT Bukit Asam Tbk during the 2019–2023 period. These findings suggest that, within the coal mining sector, firm value is more strongly affected by external factors and market perceptions rather than environmental performance and profitability alone.

Implications: this study implies that environmental performance and profitability alone are insufficient to increase firm value in the coal mining sector. Companies need to integrate financial performance, sustainability strategies, and risk management while improving transparency to enhance market confidence.

Originality: it focuses on Indonesia’s coal mining sector, specifically PT Bukit Asam Tbk, using Proper ratings as a proxy for green accounting, and provides new insights into how environmental and financial performance relate to firm value in a high-risk industry.