Disclosure of Carbon Emissions, Covid-19, Green Innovations, Financial Performance, and Firm Value

Authors

  • Prasetyo Ramadhan Faculty of Business and Economic, Budi Luhur University, Jakarta Selatan
  • Puspita Rani Fakultas Ekonomi dan Bisnis, Universitas Budi Luhur, Jakarta Selatan
  • Endah Sri Wahyuni Fakultas Ekonomi dan Bisnis, Universitas Budi Luhur, Jakarta Selatan

DOI:

https://doi.org/10.9744/jak.25.1.1-16

Keywords:

Disclosure of carbon emissions, COVID-19, green innovation, financial performance, firm value, path analysis

Abstract

The purpose of this study is to investigate the effect of the publication of carbon emissions, COVID-19, and green innovation on financial overall performance and their impact on firm value. The population utilized here are Indonesian companies registered at the Indonesia Stock Exchange from 2015 to 2021 acquired from forty-eight organizations as a sample using purposive sampling. Path analysis is used as the analysis method. This study found that the publication of carbon emissions had no enormous impact on financial performance, while COVID-19 had a full-size negative impact on financial overall performance and green inno­vation had a substantial-higher-quality impact on financial performance. Meanwhile, COVID-19 has an extensive negative impact on firm value, financial performance has a substantial effect on firm value, and disclosure of carbon emissions and green innovation has no massive effect on firm value. Similarly, financial performance cannot seriously mediate the effect of carbon emission disclosure on firm value. However, financial performance was capable of noticeably mediating the bad effect of COVID-19 on firm value and the big high effect of green innovation on firm value.

References

Aastvedt, T. M., Behmiri, N. B., & Lu, L. (2021). Does green innovation damage financial performance of oil and gas companies? Resources Policy, 73(October 2020). https://doi.org/10. 1016/j.resourpol.2021.102235

Ababneh, A. (2019). The impact of carbon accounting on corporate financial performance: Evidence from the energy sector in Jordan. Proceedings of the International Conference on Industrial Engineering and Operations Management, July, 1157–1163.

al-Bimani, A., & Matriano, M. (2021). The Impact of COVID-19 on the Financial Performance of Bank Dhofar. International Journal of Research in Entrepreneurship & Business Studies, 2(3), 47–56. https://doi.org/10.47259/ ijrebs.235

Alfayerds, W. D., & Setiawan, M. A. (2021). Pengaruh Pengungkapan Emisi Karbon dan Annual Report Readability terhadap Nilai Perusahaan. Jurnal Eksplorasi Akuntansi, 3(2), 349–363. https://doi.org/10.24036/jea.v3i2. 363

Andrian, T. (2020). Linking Corporate Carbon Emission, Social Responsibility Disclosures and Firm Financial Performance. Test Engineering and Management, June. https://www.research-gate.net/profile/Tommy-Andrian/publication/342437520_Linking_Corporate_Carbon_Emission_Social_Responsibility_Disclosure_and_Firm_Financial_Performance/links/5ef4512192851c35353fc517/Linking-Corporate-Carbon-Emission-Social-Responsibili

Anefi Hajara, D., Rahmi, H.G.,I., & YANUAR, F. (2020). Model Non Rekursif Dalam Analisis Jalur. Jurnal Matematika UNAND, 9(1), 8. https://doi.org/10.25077/jmu.9.1.8-14.2020

Astuti, W. B., & Alfie, A. A. (2021). Covid-19 dan Kinerja Saham Perusahaan Indonesia: Pendekatan Event-Study. AKSES: Jurnal Eko¬nomi Dan Bisnis, 16(1), 57–62. https://doi.org/10.31942/akses.v16i1.4472

Azizah, W. (2021). Covid-19 in Indonesia: Analysis of Differences Earnings Management in the First Quarter. Jurnal Akuntansi, 11(1), 23–32. https://doi.org/10.33369/j.akuntansi.11.1.23 -32

Bose, S., Shams, S., Ali, M. J., & Mihret, D. (2022). COVID-19 impact, sustainability performance and firm value: international evidence. Accounting and Finance, 62(1), 597–643. https://doi.org/10.1111/acfi.12801

Boshnak, H. A., Basheikh, A. M., & Basaif, M. S. (2021). The impact of firm characteristics on firm performance during the covid-19 pandemic: evidence from Saudi Arabia. Asian Economic and Financial Review, 11(9), 693–709. https://doi.org/10.18488/Journal.AEFR. 2021.119.693.709

Broadstock, D. C., Chan, K., Cheng, L. T. W., & Wang, X. (2021). The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China. Finance Research Letters, 38(June 2020), 101716. https://doi.org/10.1016/ j.frl.2020.101716

Choi, B., Luo, L., & Shrestha, P. (2021). The value relevance of carbon emissions informa¬tion from Australian-listed companies. Australian Journal of Management, 46(1), 3–23. https://doi.org/10.1177/0312896220918642

Dai, D., & Xue, Y. (2022). The Impact of Green Innovation on a Firm’s Value from the Perspective of Enterprise Life Cycles. Sustainability (Switzerland), 14(3). https://doi.org/10.3390/ su14031226

Damas, D., Maghviroh, R. EL, & Meidiyah, M. (2021). Pengaruh Eco-Efficiency, Green Inovation dan Carbon Emission Disclosure Terhadap Nilai Perusahaan Dengan Kinerja Lingkungan Sebagai Moderasi. Jurnal Magister Akuntansi Trisakti, 8(2), 85–108. https://doi.org/10.25105/jmat.v8i2.9742

Daromes, F. E., Ng, S., & Wijaya, N. (2020). Carbon Emissions Disclosure as Mechanism to Increase Environmental Performance and Control of Idiosyncratic Risk: How They Impact Firm Value. Indonesian Journal of Sustainability Accounting and Management, 4(2), 227. https://doi.org/10.28992/ijsam.v4i2.299

Daryanto, W. M., Iffah, M., & Mahardhika, R. (2021). Financial Performance Analysis of Construction Company Before and During Covid-19 Pandemic in Indonesia. International Journal of Business, Economics and Law, 24(4), 99–108.

Devi, S., Warasniasih, N. M. S., & Masdiantini, P. R. (2020). The Impact of COVID-19 Pandemic on the Financial Performance of Firms on the Indonesia Stock Exchange. Journal of Economics, Business, & Accountancy Ventura, 23(2), 226–242. https://doi.org/10.14414/jebav. v23i2.2313

Dewi, R., & Rahmianingsih, A. (2020). Mening-katkan Nilai Perusahaan Melalui Green Inno-vation dan Eco-Effisiensi. Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan dan Akuntansi, 12(2), 225–243. https://doi.org/10.35313/ ekspansi.v12i2.2241

Ding, H., Fan, H., & Lin, S. (2022). COVID-19, firm exposure, and firm value: A tale of two lockdowns. China Economic Review, 71(October 2021), 101721. https://doi.org/10.1016/j. chieco.2021.101721

Duque-Grisales, E., Aguilera-Caracuel, J., Guerrero-Villegas, J., & García-Sánchez, E. (2020). Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment. Business Strategy and the Environment, 29(8), 3286–3302. https://doi.org/10.1002/bse.2572

Esomar, M. J. F., & Christianty, R. (2021). Dampak Pandemi Covid-19 terhadap Kinerja Keuangan Perusahaan Sektor Jasa di BEI. Jkbm (Jurnal Konsep Bisnis Dan Manajemen), 7(2), 227–233. https://doi.org/10.31289/jkbm.v7i2.5266

Fadlilah, A. H., Ramadhany, A. A., Richmayati, M., Mustika, I., & Nabella, S. D. (2021). The Effect of Green Innovation on Financial Performance With Environmental Dynamism As Moderating Variable. Psychology and Education Journal, 58(1), 5228–5234. https://doi.org/10.17762/pae.v58i1.1776

Gabrielle, G., & Toly, A. A. (2019). TGabrielle, G., & Toly, A. A. (2019). The Effect Of Greenhouse Gas Emissions Disclosure And Environmental Performance On Firm Value: Indonesia Evidence. Jurnal Ilmiah Akuntansi Dan Bisnis, 14(1), 106–119.he Effect Of Greenhouse Gas Emissions Disclosure An. Jurnal Ilmiah Akuntansi Dan Bisnis, 14(1), 106–119.

Hardiyansah, M., & Agustini, A. T. (2021). Carbon Emissions Disclosure and Firm Value: Does Environmental Performance Moderate This Relationship? Jurnal Ekonomi Dan Bisnis Islam (Journal of Islamic Economics and Busi¬ness), 7(1), 51. https://doi.org/10.20473/jebis.v7i1.24463

Hartono, D., Yusuf, A. A., Hastuti, S. H., Saputri, N. K., & Syaifudin, N. (2021). Effect of COVID-19 on energy consumption and carbon dioxide emissions in Indonesia. Sustainable Production and Consumption, 28, 391–404. https://doi.org/10.1016/j.spc.2021.06.003

Haxhimusa, A., & Liebensteiner, M. (2021). Effects of electricity demand reductions under a carbon pricing regime on emissions: lessons from COVID-19. Energy Policy, 156(June), 112392. https://doi.org/10.1016/j.enpol.2021.112392

Hu, D., Qiu, L., She, M., & Wang, Y. (2021). Sustaining the sustainable development: How do firms turn government green subsidies into financial performance through green innovation? Business Strategy and the Environment, 30(5), 2271–2292. https://doi.org/10.1002/bse. 2746

Hu, S., & Zhang, Y. (2021). COVID-19 pandemic and firm performance: Crosscountry evidence. International Review of Economics and Finance, 74(2020), 365–372. https://doi.org/10. 1016/j.iref.2021.03.016

Irwhantoko, I., & Basuki, B. (2016). Carbon Emission Disclosure: Studi pada Perusahaan Manufaktur Indonesia. Jurnal Akuntansi Dan Keuangan, 18(2), 92–104. https://doi.org/10.9744/jak.18.2.92-104

Kim, E., Kim, S., & Lee, J. (2021). Do foreign investors affect carbon emission disclosure? Evidence from South Korea. International Journal of Environmental Research and Public Health, 18(19). https://doi.org/10.3390/ijerph 181910097

Kurnia, P., Emrinaldi Nur, D. P., & Putra, A. A. (2021). Carbon emission disclosure and firm value: A study of manufacturing firms in Indonesia and Australia. International Journal of Energy Economics and Policy, 11(2), 83–87. https://doi.org/10.32479/ijeep.10730

Li, L., Msaad, H., Sun, H., Tan, M. X., Lu, Y., & Lau, A. K. W. (2020). Green innovation and business sustainability: New evidence from energy intensive industry in China. International Journal of Environmental Research and Public Health, 17(21), 1–18. https://doi.org/10.3390/ijerph17217826

Lin, W. L., Cheah, J. H., Azali, M., Ho, J. A., & Yip, N. (2019). Does firm size matter? Evidence on the impact of the green innovation strategy on corporate financial performance in the automotive sector. Journal of Cleaner Produc¬tion, 229, 974–988. https://doi.org/10.1016/j.jclepro.2019.04.214

Lu, W., Zhu, N., & Zhang, J. (2021). The impact of carbon disclosure on financial performance under low carbon constraints. Energies, 14(14). https://doi.org/10.3390/en14144126

Ma, Y., Zhang, Q., & Yin, Q. (2021). Top management team faultlines, green technology inno-vation and firm financial performance. Journal of Environmental Management, 285(February), 112095. https://doi.org/10.1016/j.jenvman.2021. 112095

Meyliana, M., & Sudibyo, Y. A. (2022). Effect of carbon emissions disclosure & CSR theme on firm value with firm reputation as moderating variable. Technium Sustainability, 2(2), 32–45. https://doi.org/10.47577/sustainability.v2i2.5996

Muslichah, M. (2020). The effect of environmental and social disclosure on firm value with financial performance as intervening variable. Jurnal Akuntansi & Auditing Indonesia, 24(1), 22–32. https://doi.org/10.20885/jaai.vol24.iss1. art3

Neliana, T., & Destiana, R. (2021). Determinan Nilai Perusahaan Dengan Kinerja Keuangan Sebagai Variabel Intervening. JAS (Jurnal Akuntansi Syariah), 5(2), 173–190. https://doi.org/10.46367/jas.v5i2.430

Osayantin, H., Saidu, A., & Aifuwa, S. A. (2020). Coronavirus Pandemic Outbreak and Firms Performance in Nigeria. Management and Human Resource Research Journal, 9(4), 15–25. www.cird.online/MHRRJ

Permana, A. B. S., & Bambang, T. (2020). Peng-aruh Pengungkapan Lingkungan dan Karbon terhadap Nilai Perusahan. E-Jurnal Akuntansi, 30(4), 932–944. https://garuda.ristekbrin.go. id/documents/detail/1916872

Prena, G. D., & Muliyawan, I. G. I. (2020). Pengaruh Kinerja Keuangan terhadap Nilai Perusahaan dengan Pengungkapan Corporate Social Responsibility Sebagai Variabel Pemoderasi. Wacana Ekonomi (Jurnal Ekonomi, Bisnis dan Akuntansi). 19(2), pp.131-142. https://doi.org/10.22225/we.19.2.1955.131-142

Rababah, A., Al-Haddad, L., Sial, M. S., Chunmei, Z., & Cherian, J. (2020). Analyzing the effects of COVID-19 pandemic on the financial performance of Chinese listed compa¬nies. Journal of Public Affairs, 20(4). https://doi.org/10.1002/pa.2440

Rahmawati, F. (2020). Carbon Emission Dis¬closure and Financial Performance: Study on Companies Listed in Jakarta Islamic Index (JII) 2014-2018. At-Taradhi: Jurnal Studi Ekonomi, 11(1), 18. https://doi.org/10.18592/at-taradhi.v11i1.3461

Rais, A. H., Said, D., & Usman, A. (2020). Effect of Eco-Efficiency and Corporate Social Performance on Firm Value with Financial Performance as Intervening Variables. Jurnal Akuntansi & Auditing Indonesia, 24(1), 22–32.

Rajagukguk, B., Joharindu, V. A., & Adi, P. H. (2020). Pengaruh Tax Avoidance Dan Kinerja Keuangan Terhadap Nilai Perusahaan Dengan Kepemilikan Institusional Sebagai Pemoderasi. Jurnal Akuntansi & Ekonomi, 5(2), 58–70. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/1032

Ramadhany, A. A., Fadlilah, A. H., Richmayati, M., Mustika, I., & Nabella, S. D. (2021). The Mediation Effect Firm Performance on Green Innovation and Firm Value: Evidence the Mining Industry. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(3), 1377–1783. https://doi.org/10.17762/turcomat.v12i3.909

Rizki, T., & Hartanti, D. (2021). Environmental Responsibility, Green Innovation, Firm Value: Asean-5. Journal of International Conference Proceedings, 4(3), 464–476.

Sachs, J. D., Woo, W. T., Yoshino, N., & Tag-hizadeh-hesary, F. (n.d.). Sachs2019_Reference WorkEntry_ImportanceOfGreenFinanceForAch.pdf. 1–10.

Saffitri, R. A., & Maryanti, E. (2021). The Effect of Intellectual Capital on Firm Value with Financial Performance as an Intervening Variable. Academia Open, 5, 1–17. https://doi.org/10.21070/acopen.5.2021.2388

Santosa, P. W., Aprilia, O., & Tambunan, M. E. (2020). The intervening effect of the dividend policy on financial performance and firm value in large indonesian firms. International Journal of Financial Research, 11(4), 408–420. https://doi.org/10.5430/ijfr.v11n4p408

Shen, H., Fu, M., Pan, H., Yu, Z., & Chen, Y. (2020). The Impact of the COVID-19 Pandemic on Firm Performance. Emerging Markets Finance and Trade, 56(10), 2213–2230. https://doi.org/10.1080/1540496X.2020.1785863

Siddique, M. A., Akhtaruzzaman, M., Rashid, A., & Hammami, H. (2021). Carbon disclosure, carbon performance and financial performance: International evidence. International Review of Financial Analysis, 75(February), 101734. https://doi.org/10.1016/j.irfa.2021.101734

Sohn, J., Lee, J., & Kim, N. (2020). Going green inside and out: Corporate environmental res¬pon-sibility and financial performance under regulatory stringency. Sustainability (Switzerland), 12(9). https://doi.org/10.3390/su12093850

Suniantari, I. G. A. P., & Yasa, G. W. (2022). Kinerja Lingkungan, Kepemilikan Manajerial dan Nilai Perusahaan. E-Jurnal Akuntansi, 32(2), 3847. https://doi.org/10.24843/eja.2022.v32.i02.p19

Tinungki, G. M., Robiyanto, R., & Hartono, P. G. (2022). The Effect of COVID-19 Pandemic on Corporate Dividend Policy in Indonesia: The Static and Dynamic Panel Data Approaches. Economies, 10(1). https://doi.org/10.3390/economies10010011

Tuesta, Y. N., Soler, C. C., & Feliu, V. R. (2020). The influence of carbon management on the financial performance of European companies. Sustainability (Switzerland), 12(12), 1–21. https://doi.org/10.3390/SU12124951

van Emous, R., Krušinskas, R., & Westerman, W. (2021). Carbon emissions reduction and corporate financial performance: the influence of country‐level characteristics. Energies, 14(19), 1–19. https://doi.org/10.3390/en14196029

Velte, P., Stawinoga, M., & Lueg, R. (2020). Carbon performance and disclosure: A systematic review of governance-related determinants and financial consequences. Journal of Cleaner Production, 254, 120063. https://doi.org/10.1016/j.jclepro.2020.120063

Wang, Y., Ouyang, Z., Lin, T. Y., & Chiu, S. H. (2021). Does corporate green innovation enhance the persistence of financial performance? Evidence from Chinese listed corporations. ACM International Conference Proceeding Series, 64–69. https://doi.org/10.1145/3460824.3460835

Wibowo, D. P., Widyastuti, S., Murtanto, & Faisal, A. R. (2022). The Effect of Tax Planning, Tax Avoidance and Profitability on Company Value With Financial Performance as Intervening Variables. Budapest International Research and Critics Institute Journal, 5(1), 1589–1600.

Xie, X., Huo, J., & Zou, H. (2019). Green process innovation, green product innovation, and corporate financial performance: A content analysis method. Journal of Business Research, 101(June 2018), 697–706. https://doi.org/10.1016/j.jbusres.2019.01.010

Xie, Z., Wang, J., & Zhao, G. (2022). Impact of Green Innovation on Firm Value: Evidence From Listed Companies in China’s Heavy Pollution Industries. Frontiers in Energy Research, 9(January), 1–17. https://doi.org/10.3389/ fenrg.2021.806926

Xue, M., Boadu, F., & Xie, Y. (2019). The penetration of green innovation on firm performance: Effects of absorptive capacity and managerial environmental concern. Sustainability (Switzerland), 11(9). https://doi.org/10.3390/su11092455

Yi, Y., Zeng, S., Chen, H., & Shi, J. J. (2021). When Does It Pay to Be Good? A Meta-Analysis of the Relationship Between Green Innovation and Financial Performance. IEEE Transactions on Engineering Management, 1–11. https://doi.org/10.1109/TEM.2021.3079098

Yoo, S., Keeley, A. R., & Managi, S. (2021). Does sustainability activities performance matter during financial crises? Investigating the case of COVID-19. Energy Policy, 155(March), 112330. https://doi.org/10.1016/j.enpol.2021.112330

Zhang, F., Qin, X., & Liu, L. (2020). The interaction effect between ESG and green innovation and its impact on firm value from the perspective of information disclosure. Sustainability (Switzerland), 12(6). https://doi.org/10. 3390/su12051866

Downloads

Published

2023-05-02

Issue

Vol. 25 No. 1 (2023): MAY 2023

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. Authors retain the copyright and publishing right, and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) followingthe publication of the article, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).<a href="http://creativecommons.org/lice