Green Accounting and Intellectual Capital Efficiency as Drivers of Firm Value: Evidence from the Indonesian Mining Sector

Abstract

Post-pandemic economic conditions have increased the relevance of environmental performance and intangible resources in investor assessments, particularly in environmentally intensive industries. This study examines the relationship between PROPER-based environmental performance, intellectual capital efficiency, and firm value among mining companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2024. Using purposive sampling, the study analyzes 40 observations from 10 companies through panel data regression with the REM in Stata 15. The results indicate that environmental performance is negatively associated with firm value in both models, with and without control variables (b = −0.24, p = 0.048; b = −0.31, p = 0.021, respectively). Human capital efficiency is positively associated with firm value in the model with control variables (b = 0.019, p = 0.017). Structural capital efficiency and relational capital efficiency are not statistically significant in either model, while capital employed efficiency is significant only in the model without control variables. Higher PROPER ratings do not guarantee higher market valuations, while human capital efficiency may better attract investors. Companies should communicate environmental performance and develop employee capabilities, while regulators should ensure transparent and consistent environmental reporting.