Green accounting disclosure and firm market value: evidence from Jordan

Purpose The main objective of the study was to address the patterns and development in green accounting (GA) made by the industrial companies listed on the Amman Stock Exchange, Jordan, during 2013–2023, with the end goal of revealing the power of the GA disclosure practices on the market value (MV) of those firms. Design/methodology/approach The corporate annual reports have been examined using content analysis through a disclosure index to recognize the patterns of GA disclosures. OLS regression has been applied to test the hypothesis regarding the impact of GA disclosure on market value. Findings The multivariate results show that green accounting has a positive and statistically significant impact on MV for the listed manufacturing companies on the ASE. Practical implications The study has various implications for corporate managers, policymakers, and regulators in developing countries by providing a diagnostic tool for the status quo of green accounting disclosure, showcasing their contribution toward green production and the economy. Therefore, for corporate managers, the finding may draw attention to the role of transparent GA disclosure, which can enhance a company’s reputation, attract investors, and maximize firm value. Policymakers and regulators can utilize the findings to develop regulatory policies that standardize environmental reporting and promote sustainable business practices. Originality/value The present study is the first comprehensive investigation to collectively address aspects of green accounting disclosures, enriching and extending the GA literature by examining their implications for firm value.