Indonesia Emission Cut 2030: Is Carbon Transparency the Optimal Strategy for Companies?
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Abstract
This study analyzes the impact of Carbon Emission Disclosure (CED) on firm value using four methods: Price Earning Ratio (PER), Price to Book Value (PBV), Stock Return, and Tobin’s Q. Additionally, the role of Financial Distress as a moderating variable is examined. The sample consists of 15 energy sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. The analysis method used is the Fixed Effects Model (FEM) and Moderated Regression Analysis (MRA). The results show that CED has a significant positive effect on firm value as measured by Tobin’s Q. Financial Distress moderates the relationship between CED and firm value, with a positive effect under green conditions and a negative effect under red conditions when measured by PBV and Tobin’s Q. These findings emphasize the importance of considering internal corporate and financial conditions in carbon transparency and firm value assessment, particularly in the context of emission reduction efforts in Indonesia by 2030.
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[1]
M. S. Manurung, Y. A. Faisal, E. A. Sumirat, and H. M. F. Cahyandito, “Indonesia Emission Cut 2030: Is Carbon Transparency the Optimal Strategy for Companies?”, Int.J.Halal.Res, vol. 6, no. 1, pp. 31-35, Jun. 2024.
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References
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Bhimarvapu, V. M., Rastogi, S., Gupte, R., Pinto, G., & Shingade, S. (2022). Does the Impact of Transparency and Disclosure on the Firm’s Valuation Depend on the ESG? Journal of Risk and Financial Management.
Chalmers, J., & Picard, N. (2023). PwC's Global Investor Survey 2023. From https://www.pwc.com/gx/en/issues/c-suite-insights/global-investor-survey.html
Conelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling Theory: A Review and Assessment. Journal of Management.
Daftar Perusahaan Manufaktur Tahun 2018 EDDYELLY.com. (n.d.). From EDDYELLY.com: https://www.eddyelly.com/2019/01/daftar-perusahaan-manufaktur-tahun-2018.html
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Eccles, R. G., & Klimenko, S. (n.d.). The Investor Revolution. From Harvard Business Review: https://hbr.org/2019/05/the-investor-revolution
Hapsoro, D., & Ambarwati. (2018). ANTECEDENTS AND CONSEQUENCES OF CARBON EMISSIONS DISCLOSURE: CASE STUDY OF OIL, GAS AND COAL COMPANIES IN NON-ANNEX 1 MEMBER COUNTRIES. Journal of Indonesian Economy and Business, 99-111.
Hardiyansah, M., Agustini, A. T., & Purnamawati, I. (2021). The Effect of Carbon Emission Disclosure on Firm Value: Environmental Performance and Industrial Type. Journal of Asian Finance, Economics and Business Vol 8 No 1 (2021), 123-133.
Hasanuddin, Nurwulandari, A., & Caesariawan, I. (2022). Pengaruh literasi keuangan, efikasi keuangan, dan sikap keuangan terhadap keputusan investasi melalui perilaku keuangan. Jurnal Ilmiah Akuntansi dan Keuangan.
How companies capture the value of sustainability: Survey findings. (2021). From McKinsey Sustainability: https://www.mckinsey.com/capabilities/sustainability/our-insights/how-companies-capture-the-value-of-sustainability-survey-findings
How companies capture the value of sustainability: Survey findings. (2021). From McKinsey Sustainability: https://www.mckinsey.com/capabilities/sustainability/our-insights/how-companies-capture-the-value-of-sustainability-survey-findings
Hwan Lee, J., & Jin Hyung, C. (2021). Firm-Value Effects of Carbon Emissions and Carbon Disclosures- Evidence from Korea. International Journal of Environmental Research and Public Health.
IFADA, L. M., FAISAL, F., GHOZALI, I., & UDIN, U. (2019). Company attributes and firm value: Evidence from companies listed on Jakarta Islamic Index. ESPACIOS Voll.40 (Issue 37) Year 2019, 11.
Khaerun Nisa, A. (2023). Effect of Carbon Emission Disclosure on Company Value with Environmental Performance as Moderating Variable in Non-Financial Companies LIsted on the Indonesian Stock Exchange. JOURNAL OF ACCOUNTING p-ISSN:0000-0000 | e-ISSN: 0000-0000 Vol 3 Number 1.
Kieso, D. W. (2019). Intermediate Accounting, Volume 1. John Wiley & Sons.
Matsumura, E. M., Prakash, R., & Vera-Munoz, S. (2014). Firm-Value Effects of Carbon Emissions and Carbon Disclosures. THE ACCOUNTING REVIEW Vol. 89, No. 2, 695 - 724.
Noor, A., & Lestari Ginting, Y. (2022). INFLUENCE OF CARBON EMISSION DISCLOSURE ON FIRM VALUE OF INDUSTRIAL FIRMS IN INDONESIA. International Journal of Contemporary Accounting Vol 4 No. 2, 151-168.
Nunez, C. (2019). Carbon dioxide levels are at a record high. Here's what you need to know. From National Geographic: https://www.nationalgeographic.com/environment/article/greenhouse-gases
ppid.menlhk.go.id. (2016, April 23). Indonesia Menandatangani Perjanjian Paris Tentang Perubahan Iklim. From ppid.menlhk.go.id: https://ppid.menlhk.go.id/siaran_pers/browse/298
Rahma Sari, J. (2024). Jurnal Ekonomi, Bisnis dan Akuntansi (JEBA) Volume 22 No 1 Tahun 2020.
Rahmadina, S., & Anisatus, R. Z. (2023). The Effect of Carbon Emission Disclosure, Enviromental Performance, and Green Accounting on Firm Value at Manufacturing Companies Listed on the Indonesia Stock Exchange. Annual International Conference on Islamic Economics and Business Vol 3, 213-224.
Ramadhana, D., & Windijarto. (2023). Effects of carbon disclosure project on financial performance. Enrichment: Journal of Management.
Rawal, A., Rastogi, S., Jagjeevan, K., & Bhimavarapu, V. M. (2022). Impact of transparency and disclosure (T&D) and financial distress (FD) on the valuation of banks in India. Journal of Economic and Administrative Sciences.
Russmana, O., & Ngurah Purnaman, S. M. (2020). PENGARUH PENGUNGKAPAN EMISI KARBON DAN KINERJA LINGKUNGAN. Jurnal Ekonomi, Bisnis dan Akuntansi (JEBA) Volume 22 No 1 Tahun 2020.
Sakrini, L., & Setiadi, I. (2021). PENGARUH LEVERAGE, PROFITABILITAS, UKURAN PERUSAHAAN DAN KINERJA LINGKUNGAN TERHADAP PENGUNGKAPAN EMISI KARBON PERUSAHAAN. KOMPARTEMEN: JURNAL ILMIAH AKUNTANSI, 83-92.
Sampurna, D. S., & Romawati, E. (2020). Determinants of Firm Value: Evidence in Indonesia Stock Exchange. Advances in Economics, Business and Management Research, volume 132.
Setkab.go.id, H. S. (2016, Maret). Tindak Lanjut Kesepakatan Global Perubahan Iklim COP 21 Paris. From setkab.go.id: https://setkab.go.id/tindak-lanjut-kesepakatan-global-perubahan-iklim-cop21-paris/
Sindy, W., Leniwati, D., Wicaksono, A., & Haryanti, A. (2024). DETERMINANTS OF COMPANY SIZE, LEVERAGE, AND PROFITABILITY ON CARBON EMISSION DISCLOSURE. Jurnal Magister Akuntansi Trisakti Vol .11 No. 1, 17 - 28.
Solikhah, B., Wahyudin, A., & Subowo. (2019). Carbon emissions of manufacturing companies in Indonesia stock exchange: a sustaniable business perspective. Journal of Physics: Conference Series.
UN Climate Action. (n.d.). From United Nations: https://www.un.org/en/climatechange/science/causes-effects-climate-change
University of Exeter and Stanford Doerr, S. o. (2023). Global carbon emissions from fossil fuels reached record high in 2023. From Stanford Doerr: https://sustainability.stanford.edu/news/global-carbon-emissions-fossil-fuels-reached-record-high-2023
Wibowo, R., Suhendro, S., & Amelia, Y. (2022). Analysis of Factors Affecting Carbon Emission Disclosure in Indonesia. Journal of Accounting Management Business and International Research.
Wiratno, A., & Muaziz, F. (2020). PROFITABILITAS, UKURAN PERUSAHAAN, DAN LEVERAGE MEMPENGARUHI PENGUNKAPAN EMISI KARBON DI INDONESIA. Jurnal Ekonomi, Bisnis dan Akuntansi (JEBA) Volume 22 No 1 Tahun 2020.
Wirianata, H. (2019). Faktor-Faktor Yang Mempengaruhi Nilai Perusahaan Dengan Moderasi GCG. Jurnal Ekonomi/Volume XXIV, No. 03 November 2019: 468-487, 468-487.
Yuliandhari, W. S., Saraswati, R. S., & Safari, Z. M. (2023). e –ISSN : 2548-9224 | p–ISSN : 2548-7507 Volume 7 Nomor 2.