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Riset Akuntansi dan Keuangan IndonesiaRiset Akuntansi dan Keuangan Indonesia

With the increasing awareness of stakeholders and climate change issues, companies increasingly try to manage their emissions. This study aims to examine how carbon emissions performance affects firm value and to examine the moderating role of ownership concentration and public visibility. This study uses a data set of 52 companies with 206 observations in non-financial companies listed on the Indonesia Stock Exchange during 2016-2023. The results show that carbon emission performance has a positive effect on firm value and ownership concentration cannot moderate the relationship, but public visibility can weaken the relationship between carbon emission performance and firm value. This research implies the importance of companies managing carbon emissions as a business sustainability strategy that can attract investors and maintain public visibility to avoid environmental controversy.

The study concludes that good carbon emission performance positively influences firm value, indicating that companies prioritizing environmental responsibility are favored by investors.However, ownership concentration does not strengthen this relationship, suggesting that shareholder influence on sustainability initiatives is not a primary driver of firm value.Conversely, public visibility weakens the positive correlation between carbon performance and firm value, potentially due to increased scrutiny and the risk of controversy.

Future research should investigate the impact of specific carbon emission reduction technologies on firm value, considering the varying costs and effectiveness of different approaches. Furthermore, exploring the role of government regulations and incentives in promoting carbon emission management and its subsequent effect on firm performance is crucial. Finally, a deeper understanding of investor perceptions regarding carbon emissions, including their willingness to accept lower short-term profits for long-term sustainability, would provide valuable insights for companies and policymakers. These studies should consider a broader range of variables, such as industry-specific factors and regional differences, to provide a more comprehensive understanding of the complex relationship between carbon performance, firm value, and stakeholder expectations. The research should also explore the impact of green financing and sustainable investment practices on firm value, as these are increasingly important drivers of corporate sustainability.

  1. Women on Boards as A Mechanism to Improve Carbon Emission Disclosure and Firm Value | Jurnal Ilmiah Akuntansi... ojs.unud.ac.id/index.php/jiab/article/view/68612Women on Boards as A Mechanism to Improve Carbon Emission Disclosure and Firm Value Jurnal Ilmiah Akuntansi ojs unud ac index php jiab article view 68612
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