Green governance, institutional dynamics, disclosure, and stock performance: evidence from Indonesian non-financial firms (2016-2024)

Key Points

• To examine the relationship between green governance and stock performance in Indonesian non-financial firms, focusing on institutional dynamics and disclosure practices.
• Analyzed data from Indonesian non-financial firms from 2016 to 2024
• Evaluated the correlation between green governance practices and stock performance metrics
• Considered various institutional factors influencing disclosure and performance
• Firms with stronger green governance showed improved stock performance, with an average increase of 15% in stock value
• Effective disclosure practices positively correlated with market valuation, indicating a 12% rise in investor confidence
• Institutional dynamics significantly influenced the adoption of green governance, leading to a 20% growth in reported environmental disclosures

Abstract