Carbon emissions disclosure and firm value: A study of firms in Indonesia
Desy Maharani, Inggrite Puspita, Kholidah Suhaimah & Kamalah Saadah
Abstract
This study aims to examine the effect of carbon emissions disclosure on firm value in Indonesia using statistical analysis methods. This research uses panel data which consists of a combination of time series and cross section. A total of 1,830 data from 366 Indonesian companies were collected from annual reports and sustainability reports for an observation period from 2018 to 2022 as a sample of the research. Firm value is measured using Tobin’s Q. The results showed that the disclosure of carbon emissions had an effect on firm value. It was also figured out that a control variable, leverage, affected firm value. These results indicate that information about carbon emissions promotes firm value. The disclosure of carbon emissions by the company will affect investors' decisions. This is consistent with the stakeholder theory, according to which investors have the right to obtain information about the company’s activities from annual reports and sustainability reports. Companies are encouraged to foster the initiative to disclose carbon emissions as an effort to reduce the threats of global warming and strengthen stakeholders’ trust in making investment decisions.
Keywords
carbon emissions, disclosure, firm value, stakeholder, Indonesia
Author information & Contribution
Desy Maharani. Faculty of Economics and Business, Universitas Swadaya Gunung Jati
Inggrite Puspita. Faculty of Economics and Business, Universitas Swadaya Gunung Jati
Kholidah Suhaimah. Faculty of Economics and Business, Universitas Swadaya Gunung Jati
Kamalah Saadah. Corresponding author. Faculty of Economics and Business, Universitas Swadaya Gunung Jati, Email: kamalah.saadah@ugj.ac.id
Disclosure statement
No potential conflict of interest was reported by the author(s).
Funding
This work was not supported by any funding.
Institutional Review Board Statement
Data and Materials Availability
The data supporting the findings of this study are available from the corresponding author upon reasonable request.
AI Declaration
Notes
Acknowledgement
References
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Cite this article:
Maharani, D., Puspita, I., Suhaimah, K. & Saadah, K. (2024). Carbon emissions disclosure and firm value: A study of firms in Indonesia. International Journal of Academe and Industry Research, 5(3), 22-45. https://doi.org/10.53378/ijair.353078
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