Green Financing and Energy Innovation Driving Firm Performance in Southeast Asian Energy Firms

This research investigates the impact of sustainability initiatives and financial variables on Return on Assets (ROA) in Southeast Asian energy companies. The study analyzes the relationships between Renewable Energy Investment (REITI), Carbon Emission Disclosure (TCED), Fiscal Incentives for Renewable Energy Investment (FIREI), Green Financing (GFTF), and Green Energy Market Demand Growth (GEMDG), alongside financial variables like Debt-to-Equity Ratio (DER) and Dividend Payout Ratio (DPR). Using regression analysis, the research finds that REITI negatively affects ROA, while TCED positively correlates with it. Surprisingly, FIREI is negatively associated with ROA, suggesting market distortions or a focus on long-term investments. GFTF and GEMDG do not exhibit significant direct effects on ROA, and DER consistently shows a negative impact on ROA with a nuanced moderating role. DPR, however, lacks significant influence on ROA. These findings highlight the complex dynamics between sustainability efforts and financial performance, emphasizing the need for strategic financial management and careful evaluation of policy instruments to align long-term sustainability goals with financial outcomes.