THE EFFECT OF GREEN ACCOUNTING ON PROFITABILITY AND GROWTH IN A COMPANY’S STOCK PRICE

This research aims to determine the effect of green accounting on profitability
(Return on Asset, Return on Equity, and Return on sale) and growth in a company’s
stock price. The sample of this study use 32 of mining and plantation companies
listed in Indonesia Stock Exchange from 2018 – 2020. Hypothesis testing uses simple
regression analysis. The data analysis used in this study was done with E-views
version 9 application.
The results showed that green accounting measured by PROPER has a
positive effect on profitability (Return on asset, Return on Equity, Return on Sale)
and stock price growth. This means that the company follow PROPER care about the
environment which will provide benefits for the company’s future, it will affect to the
profitability and stock price growth. The better disclosure on PROPER rating will
also reduce information asymmetry to stakeholders, which means that variable green
accounting support signaling theory.