PENGARUH GREEN ACCOUNTING, ESG DISCLOSURE DAN UKURAN PERUSAHAAN TERHADAP KINERJA KEUANGAN PADA SEKTOR PERBANKAN

Abstract

This study examines the effect of green accounting, Environmental, Social, and Governance (ESG) disclosure, and firm size on the financial performance of the banking sector in Indonesia, with a focus on sustainability amidst liquidity challenges. A quantitative approach was employed using secondary data obtained from annual and sustainability reports of banks listed on the Indonesia Stock Exchange (IDX) for the period 2022–2024. Data were analyzed using descriptive statistics, classical assumption testing, multiple linear regression, and hypothesis testing. The results indicate that environmental cost (BL) has a significant negative effect on financial performance (0.0430 < 0,05), while environmental activity (AL) shows no significant effect (0.2166 > 0,05). Environmental disclosure (ED) has a significant positive impact (0.0046 < 0,05), whereas social disclosure (SD) has a significant negative influence on financial performance (0.0036 < 0,05). Conversely, governance disclosure (GD) and firm size (UP) do not show significant effects, with p-values of (0.6363 > 0,05) and (0.3539 > 0,05)., respectively. This study contributes to the literature by introducing the Loan to Deposit Ratio (LDR) as a liquidity-based financial performance indicator within the context of banking sector sustainability—an approach that remains underexplored in previous research, which predominantly used profitability indicators such as Return on Assets (ROA) and analyzed these variables separately in non-banking sectors.