Strengthening Emission Carbon Disclosure in Increasing Firm Value

This study employs quantitative methodology with a causal comparative design to investigate how green accounting, financial performance, and environmental performance influence firm value, while also examining carbon emission disclosure as a moderating variable in these relationships. The research population comprises mining companies listed on the Indonesia Stock Exchange during 2019-2023, with 16 companies selected through purposive sampling, yielding 80 total observations. Data collection relies on secondary sources, specifically sustainability and annual reports from these mining companies. The analytical approach combines multiple linear regression with Moderated Regression Analysis (MRA) or interaction testing to examine the proposed relationships. The results show that firm value is unaffected by financial performance or green accounting. Firm value is impacted by environmental performance. Carbon emission dislosure has not been shown to mitigate the impact of firm value on financial performance. It has been demonstrated that the impact of environmental performance and green accounting on firm value is mitigated by carbon emission disclosure. The study’s implications can broaden our understanding of environmental reporting and carbon emission disclosure in relation to a company’s environmental sustainability, and stock market conclusions are based on companies that receive positive signals from investors. The study’s findings may encourage business to reveal carbon emissions and stress the benefit of environmental preservation in order to boost their perceived worth to stakeholders and investors.