Profitability and Market Value Effect on Carbon Emission Disclosures: The Moderating Role of Environmental Performance
Climate change is an issue that is of concern to the global public and scientific community. There is a close relationship between climate change and carbon emissions, which are the primary cause of global warming. Reporting on carbon emissions is essential for corporate accountability to stakehold...
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EconJournals
2024-05-01
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| Series: | International Journal of Energy Economics and Policy |
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| Online Access: | https://www.econjournals.com.tr/index.php/ijeep/article/view/15915 |
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| author | Fitra Dharma Maran Marimutu Liza Alvia |
| author_facet | Fitra Dharma Maran Marimutu Liza Alvia |
| author_sort | Fitra Dharma |
| collection | DOAJ |
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Climate change is an issue that is of concern to the global public and scientific community. There is a close relationship between climate change and carbon emissions, which are the primary cause of global warming. Reporting on carbon emissions is essential for corporate accountability to stakeholders when evaluating a company's financial and non-financial performance. Good management of carbon emissions will enhance the company's reputation. This study analyses the impact of company profitability and market value on the disclosure of carbon emissions, with environmental performance serving as a moderating variable in the context of Indonesian public companies. This study concludes that: (1) There is no significant impact on profitability, as measured by Return on Assets, on Carbon Emission Disclosure; (2) The study finds that there is a statistically significant positive relationship between market value, measured by Tobin's Q, and the level of carbon emission disclosure. This relationship is significant at a 5% significance level; (3) The moderating effect of environmental performance on the relationship between profitability, as measured by return on assets, and carbon emission disclosure is found to be insignificant; (4) The significance level of 10% indicates that the relationship between environmental performance, as a measure of a company's environmental practices, and market value, as represented by Tobin's Q, is strengthened concerning the disclosure of carbon emissions. This research can contribute to developing accounting knowledge to close gaps in the body of knowledge regarding the disclosure of carbon emissions in developing nations, particularly Indonesia.
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| format | Article |
| id | doaj-art-1ac9fc5317154b4295325f895ab3f0e7 |
| institution | Kabale University |
| issn | 2146-4553 |
| language | English |
| publishDate | 2024-05-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj-art-1ac9fc5317154b4295325f895ab3f0e72024-12-27T01:04:26ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532024-05-0114310.32479/ijeep.15915Profitability and Market Value Effect on Carbon Emission Disclosures: The Moderating Role of Environmental PerformanceFitra Dharma0Maran Marimutu1Liza Alvia2Univeristy of Lampung, IndonesiaUniversiti Teknologi Petronas, MalaysiaUniveristy of Lampung, Indonesia Climate change is an issue that is of concern to the global public and scientific community. There is a close relationship between climate change and carbon emissions, which are the primary cause of global warming. Reporting on carbon emissions is essential for corporate accountability to stakeholders when evaluating a company's financial and non-financial performance. Good management of carbon emissions will enhance the company's reputation. This study analyses the impact of company profitability and market value on the disclosure of carbon emissions, with environmental performance serving as a moderating variable in the context of Indonesian public companies. This study concludes that: (1) There is no significant impact on profitability, as measured by Return on Assets, on Carbon Emission Disclosure; (2) The study finds that there is a statistically significant positive relationship between market value, measured by Tobin's Q, and the level of carbon emission disclosure. This relationship is significant at a 5% significance level; (3) The moderating effect of environmental performance on the relationship between profitability, as measured by return on assets, and carbon emission disclosure is found to be insignificant; (4) The significance level of 10% indicates that the relationship between environmental performance, as a measure of a company's environmental practices, and market value, as represented by Tobin's Q, is strengthened concerning the disclosure of carbon emissions. This research can contribute to developing accounting knowledge to close gaps in the body of knowledge regarding the disclosure of carbon emissions in developing nations, particularly Indonesia. https://www.econjournals.com.tr/index.php/ijeep/article/view/15915Carbon Emission Disclosure, Market Value, Oil and Gas Industry, Public Listed Company, Profitability |
| spellingShingle | Fitra Dharma Maran Marimutu Liza Alvia Profitability and Market Value Effect on Carbon Emission Disclosures: The Moderating Role of Environmental Performance International Journal of Energy Economics and Policy Carbon Emission Disclosure, Market Value, Oil and Gas Industry, Public Listed Company, Profitability |
| title | Profitability and Market Value Effect on Carbon Emission Disclosures: The Moderating Role of Environmental Performance |
| title_full | Profitability and Market Value Effect on Carbon Emission Disclosures: The Moderating Role of Environmental Performance |
| title_fullStr | Profitability and Market Value Effect on Carbon Emission Disclosures: The Moderating Role of Environmental Performance |
| title_full_unstemmed | Profitability and Market Value Effect on Carbon Emission Disclosures: The Moderating Role of Environmental Performance |
| title_short | Profitability and Market Value Effect on Carbon Emission Disclosures: The Moderating Role of Environmental Performance |
| title_sort | profitability and market value effect on carbon emission disclosures the moderating role of environmental performance |
| topic | Carbon Emission Disclosure, Market Value, Oil and Gas Industry, Public Listed Company, Profitability |
| url | https://www.econjournals.com.tr/index.php/ijeep/article/view/15915 |
| work_keys_str_mv | AT fitradharma profitabilityandmarketvalueeffectoncarbonemissiondisclosuresthemoderatingroleofenvironmentalperformance AT maranmarimutu profitabilityandmarketvalueeffectoncarbonemissiondisclosuresthemoderatingroleofenvironmentalperformance AT lizaalvia profitabilityandmarketvalueeffectoncarbonemissiondisclosuresthemoderatingroleofenvironmentalperformance |