Corporate Green Performance and Firm Value in Environmentally Sensitive Sectors on the Indonesia Stock Exchange

Ambarwati Akib; Sri Utami

doi:10.63922/ijevss.v5i02.3668

Ambarwati Akib Universitas Negeri Makassar, Indonesia
Sri Utami Universitas Negeri Makassar, Indonesia

DOI: https://doi.org/10.63922/ijevss.v5i02.3668

Keywords: environmental disclosure, environmental performance, firm value, PROPER, environmentally sensitive sectors

Abstract

This study aims to examine the effect of environmental disclosure and environmental performance on firm value in environmentally sensitive sector companies listed on the Indonesia Stock Exchange. Environmentally sensitive sectors were selected because their operational activities have a high potential for ecological impact; therefore, environmental transparency and environmental performance are important aspects of market valuation. This study employs a quantitative approach with an associative research design. The data used are secondary data obtained from annual reports, sustainability reports, PROPER data, and corporate market information. The sample was determined using purposive sampling, resulting in 90 observations. Firm value is measured using Tobin's Q, environmental disclosure is measured using a disclosure index based on the GRI Standards, and environmental performance is measured using PROPER scores. The data were analyzed using multiple linear regression with SPSS 26. The results indicate that environmental disclosure has a positive and significant effect on firm value. Environmental performance also has a positive and significant effect on firm value. These findings indicate that environmental information transparency and achievements in environmental management can enhance investors' positive perceptions of companies, particularly in industries facing regulatory pressure and reputational risk in the Indonesian capital market. This study confirms that sustainability practices are not merely a form of compliance, but also contribute to sustainable firm value creation and long-term competitive advantage.

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