Analysis shows carbon emission disclosure positively influences firm value in Indonesian energy firms, highlighting stakeholder pressure's moderating role.
This study aims to examine the effect of Corporate Governance and Environmental Management Accounting on Firm Value, with Carbon Emission Disclosure as a mediating variable and Stakeholder Pressure as a moderating variable. Grounded in the Resource-Based View (RBV) and Triple Bottom Line (TBL) frameworks, this study conceptualizes Carbon Emission Disclosure as a strategic internal capability that enhances firm legitimacy and value creation. Using panel data regression on 105 observations from 21 Indonesian energy companies listed on the Indonesia Stock Exchange during 2019-2023, this study finds that Environmental Management Accounting and Carbon Emission Disclosure have a significant positive effect on firm value. Corporate Governance also positively influences firm value but has a negative impact on Carbon Emission Disclosure, indicating that governance mechanisms in emerging markets may still be symbolic rather than substantive. The study further reveals that Carbon Emission Disclosure mediates the relationship between EMA and firm value, but not between Corporate Governance and firm value. Stakeholder pressure functions as a pure moderator that strengthens the positive relationship between Carbon Emission Disclosure and firm value. The findings provide actionable insights for policymakers and managers in carbon-intensive industries by emphasizing the need to strengthen environmental accounting systems and stakeholder engagement mechanisms to enhance firm value. This study offers a novel integration of RBV and TBL perspectives in explaining the indirect and moderated pathways linking governance, environmental management, and firm value, particularly in the context of a developing economy with evolving sustainability regulations.
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Sari et al. (2025) studied this question.
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