The Role of Financial Performance in Moderating Green Accounting, Company Size, Leverage on Company Value

Abstract

Purpose: Company value is a benchmark related to company performance, both internally and externally. An increase in company value can improve investor welfare, so that investors will tend to invest their capital in the company. Apart from that, company value can also be a benchmark for the success of a company. This research aims to examine how green accounting, company size and leverage on company value are moderated by financial performance.

Methodology/approach: The data used in this research were taken from the financial reports of Energy Sector companies listed on the Indonesia Stock Exchange for the period 2019 – 2023.

Results/findings: The research results show that green accounting does not have a significant effect on company value, while company size does not have a significant effect on company value. On the other hand, leverage has been proven to have a significant positive effect on company value. Financial performance is unable to moderate the relationship between green accounting and company value. However, financial performance has been proven to strengthen the relationship between company size and company value. Additionally, financial performance is also unable to moderate the relationship between leverage and company value.

Limitations: Short research period from 2019 to 2023 and only covers energy companies

Contribution: These findings provide insights for companies in determining the factors that can enhance the company's value, as well as the importance of considering financial performance as a balancing factor in the company's financial relationships.

Novelty: The presence of the Financial Performance variable to moderate the independent variable against the dependent variable.