Quantitative analysis examines the effects of carbon disclosure on firm value in the energy sector, suggesting operational costs may outweigh benefits.
Key Points
Carbon emission disclosure shows a significant negative effect on firm value, suggesting operational costs may outpace financial returns.
Profitability, measured by Return on Assets (ROA), presents a positive but insignificant relationship with firm value in this analysis.
Panel data regression was utilized, employing a Random Effect Model based on multiple statistical tests to ensure robustness in findings.
The results highlight that environmental transparency does not always enhance firm value, implying a complex investor response in emerging markets.