This study examines the impact of green accounting disclosure on financial performance indicators of European industrial companies during the period 2010-2022, as eight indicators of green accounting disclosure were used as independent variables, and these indicators were considered dummy variables with an amount of (0, 1), and the ROA, ROE and EPS dependent variables, and the data were extracted from the DataStream database for 1050 firms. Using multiple regression analysis, the results of the study showed a variation in the effect of green accounting disclosure indicators on the financial performance indicators of industrial companies. Environmental Expenditures Investments, Environmental Expenditures, Environment Management Team, Policy Energy Efficiency, Renewable Energy Use, Policy Emissions, and Environmental Supply Chain Management have a positive effect on the ROA, ROE, and EPS with different level. The firm size as control variable affects the impact of the green accounting disclosure on the financial performance. Finally, the study recommended a set of recommendations, including that regulations and instructions related to green disclosures and sustainability disclosures be taken into account within the company’s internal strategies, and disclosures should be provided periodically to stakeholders to preserve the company’s funding sources, which fundamentally affect the companies’ financial performance indicators.

Keywords   : Green accounting, financial performance indicators, ROA, ROE, ROE, Green accounting disclosure indicators.

Title

Studies in Systems Decision and Control 587- Springer Nature , scopus

Publisher

Springer Nature , scopus

Publisher Country

Switzerland

Indexing

Scopus

Impact Factor

None

Publication Type

Online only

Volume

587

Year

2025

Pages

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