Corporate Performance in the Context of Global Carbon Regulations: A Green Accounting Disclosure Perspective

Research into the relationship between green accounting disclosure and corporate financial performance is expanding rapidly, but the results remain inconsistent. This is a worldwide phenomenon, not exclusive to Indonesia. Even across comparable industries and observation periods, many studies yield insignificant results, while others find a significant positive relationship.The purpose of this study is to investigate the impact of green accounting disclosure on corporate finance and to assess the moderating role of carbon regulations. The study discovered that green accounting disclosure improves corporate finance, as measured by corporate profitability (ROE), return on equity (ROE), and market value (Tobin's Q). This lends support to the Triple Bottom Line theory, which holds that incorporating environmental factors into corporate strategy yields long-term financial benefits. Second, carbon regulations have a moderating effect, which strengthens the positive relationship between corporate finance and green accounting disclosure. High-quality green accounting disclosure is financially advantageous for companies operating in countries with stricter carbon regulations. These findings support the idea that effective carbon policies promote a competitive advantage.