The Effect of Carbon Emission Disclosure on Firm Value with Financial Performance as a Mediating Variable in Islamic Banks in the MENA Region for the Period 2016-2022

This study aims to investigate the effect of carbon emission disclosure on firm value by considering the role of financial performance as a mediating variable and firm size and leverage as control variables. Data were collected from Islamic banks listed on the stock exchange of each country in the MENA region during the period 2016-2022. The analysis method used is path analysis. The results showed that carbon emission disclosure does not affect firm value directly, but carbon emission disclosure has a significant effect on firm value through financial performance. This means that financial performance mediates the relationship between carbon emissions disclosure and firm value. These findings provide new insights into the importance of environmental information disclosure and financial performance in increasing firm value in a market that is increasingly concerned about environmental issues.