The Effect of Green Accounting, Independent Board Members, and Audit Committees on Company Value, with Profitability as A Control Variable

This study investigates the influence of Green Accounting, independent commissioners, and audit committees on firm value in Basic Materials companies listed on the Indonesia Stock Exchange during 2021–2024, with profitability included as a control variable. The study is motivated by the environmental challenges faced by the Basic Materials sector, particularly the increasing demand for sustainability practices and effective corporate governance to enhance firm value. This research employed a quantitative explanatory approach using secondary panel data obtained from annual reports, sustainability reports, and financial statements. Purposive sampling resulted in 53 companies, which were subsequently reduced to 43 companies with 172 firm-year observations after outlier treatment. Data were analyzed using panel data regression with the Fixed Effect Model selected through Chow and Hausman tests. The findings reveal that Green Accounting has a significant negative effect on firm value, indicating that investors tend to perceive environmental disclosure as a short-term cost burden rather than a long-term benefit. Meanwhile, independent commissioners, audit committees, and profitability do not significantly affect firm value. These findings extend Agency Theory by suggesting that the value relevance of environmental disclosure depends on industrial characteristics and investors’ time horizons.