The Impact of Sustainability Reporting and Green Accounting Disclosure on Company Financial Performance (Case Study of PROPER Participating Companies 2019-2023)

Abstract

This study aims to analyze the influence of Sustainability Reporting and Green Accounting on corporate financial performance as measured by Return on Assets (ROA). The research data were obtained from the Ministry of Environment's PROPER report, annual reports, and sustainability reports of PROPER participating companies for 2019-2023. The analytical method used was multiple linear regression analysis with a significance level of 5%. The sample used in this study were mining and material companies participating in PROPER for 2019-2023, resulting in 40 research samples. The results showed that Sustainability Reporting had no significant effect on corporate financial performance, while Green Accounting did not significantly affect corporate financial performance. These findings indicate that sustainability and environmental accounting practices implemented by companies have not yet fully provided a tangible financial impact. Therefore, companies are advised to improve the quality of implementation and disclosure of sustainability practices in order to create economic value while strengthening corporate image in the future.