Published: 2025-12-23
The Effect of Environmental Disclosure and Green Innovation on Firm Value
DOI: 10.35870/ijmsit.v5i2.6017
Downloads
Abstract
This study aims to analyze the effect of environmental disclosure and green innovation on firm value. The research employs a quantitative approach using correlation analysis and panel data regression, assisted by EViews 12 software. The data consist of secondary data obtained from the annual financial reports of 20 companies listed on the Indonesia Stock Exchange during the 2020–2024 period, resulting in 100 observations. The empirical results indicate that environmental disclosure has a significant positive effect on firm value, while green innovation does not show a significant influence. These findings suggest that transparent environmental disclosure plays a crucial role in enhancing firm value by strengthening investor confidence. Practically, this study provides insights for investors in evaluating corporate sustainability performance and encourages companies to improve the quality of their environmental disclosures and green innovation strategies to support long-term sustainability and value creation.
Keywords
Article Information
This article has been peer-reviewed and published in the International Journal of Management Science and Information Technology. The content is available under the terms of the Creative Commons Attribution 4.0 International License.
-
Issue: Vol. 5 No. 2 (2025)
-
Section: Articles
-
Published: %750 %e, %2025
-
License: CC BY 4.0
-
Copyright: © 2025 Authors
-
DOI: 10.35870/ijmsit.v5i2.6017
AI Research Hub
This article is indexed and available through various AI-powered research tools and citation platforms. Our AI Research Hub ensures that scholarly work is discoverable, accessible, and easily integrated into the global research ecosystem. By leveraging artificial intelligence for indexing, recommendation, and citation analysis, we enhance the visibility and impact of published research.
Ahmad Rifqi Hidayat
Faculty of Business and Economics, Applied Undergraduate Study Program in Financial Analysis, Universitas Islam Indonesia, Sleman Regency, Special Region of Yogyakarta Province, Indonesia
-
Abdi, Y., Li, X., & Càmara-Turull, X. (2022). Exploring The Impact of Sustainability (ESG) Disclosure on Firm Value and Financial Performance (FP) in Airline Industry: The Moderating Role of Size and Age. Environment, Development and Sustainability, 24(4), 5052–5079. https://doi.org/10.1007/s10668-021-01649-w
-
Aboud, A., & Diab, A. (2018). The impact of social, environmental and corporate governance disclosures on firm value: Evidence from Egypt. Journal of Accounting in Emerging Economies, 8(4), 442–458. https://doi.org/10.1108/JAEE-08-2017-0079
-
Agustia, D., Sawarjuwono, T., & Dianawati, W. (2019). The mediating effect of environmental management accounting on green innovation : firm value relationship The Mediating Effect of Environmental Management Accounting on Green Innovation - Firm Value Relationship. International Journal of Energy Economics and Policy, 9(2), 299–306. https://doi.org/10.32479/ijeep.7438.This
-
Damas, D., & Tarisa, B. (2022). The Moderating Role Of Environmental Management Accounting On Firm Value. Jurnal Akuntansi Trisakti, 9(2), 281–306. https://doi.org/10.25105/jat.v9i2.14005
-
Damas, D., Maghviroh, R. EL, & Meidiyah, I. (2021). Pengaruh Eco-Efficiency, Green Innovation, 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 ISSN
-
Deswanto, R. B., & Siregar, S. V. (2018). The associations between environmental disclosures with financial performance, environmental performance, and firm value. Social Responsibility Journal, 14(1), 180–193. https://doi.org/10.1108/SRJ-01-2017-0005
-
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 Business), 7(1), 51. https://doi.org/10.20473/jebis.v7i1.24463
-
Husnaini, W., & Tjahjadi, B. (2021). Quality Management , Green Innovation and Firm Value : Evidence from Indonesia. International Journal of Energy Economics and Policy, 11(1), 255–262.
-
Indrawati, N., L., A. A., Rofika, & Basri, Y. M. (2023). The Effect of Intellectual Capital and Corporate Governance on Company Performance and its Impact on Firm Value. KnE Social Sciences, 217–232. https://doi.org/10.18502/KSS.V8I13.13759
-
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
-
Li, Y., Gong, M., Zhang, X., & Koh, L. (2018). The Impact of Environmental, Social, and Governance Disclosure on Firm Value: The Role of CEO Power. The British Accounting Review, 50(1), 60–75. https://doi.org/10.1016/j.bar.2017.09.007
-
Liu, L. (2024). Green innovation, firm performance, and risk mitigation: evidence from the USA. Environment, Development and Sustainability, 26(9), 24009–24030. https://doi.org/10.1007/s10668-023-03632-z
-
Melinda, A., & Wardhani, R. (2020). The Effect Of Environmental, Social, Governance, And Controversies On Firms’ Value: Evidence From Asia. International Symposia in Economic Theory and Econometrics, 27(June 2020), 147–173. https://doi.org/10.1108/S1571-038620200000027011
-
Pan, Y. (2022). Green Innovation, Environmental Information Disclosure and Firm Value. Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022), 558–569. https://doi.org/10.2991/978-94-6463-036-7_83
-
Saraswati, W., Sukoharsono, E. G., Saraswati, E., & Prastiwi, A. (2022). The Effect Of Sustainability Reporting Practices on The Quality of Csr Disclosures in Banking in Indonesia. International Journal of Environmental, Sustainability and Social Science, 3(3), 644–653. https://doi.org/10.38142/ijesss.v3i3.264
-
Sumarno, D. C., Andayani, W., & Prihatiningtias, Y. W. (2023). The Effect of Environmental , Social and Governance ( ESG ) Assessment on Firm Value with Profitability as a Mediating Variable. APMBA (Asia Pacific Management and Business Application), 12(1), 55–64. https://doi.org/10.21776/ub.apmba.2023.012.01.4
-
Wu, H., & Li, J. (2023). The relationship between environmental disclosure and financial performance : mediating effect of economic development and information penetration. Economic Research-Ekonomska Istraživanja, 36(1), 116–142. https://doi.org/10.1080/1331677X.2022.2072355
-
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
-
Yao, Iq., Huang, L., & Li, M. (2019). The effects of tech and non-tech innovation on brand equity in China : The role of institutional environments. PLoS ONE, 14(5), 1–24. https://doi.org/10.1371/ journal.pone.0215634 Editor:
-
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, 12(5), 1–18. https://doi.org/10.3390/su12051866
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. Copyright Retention and Open Access License
Authors retain copyright of their work and grant the journal non-exclusive right of first publication under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
This license allows unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
2. Rights Granted Under CC BY 4.0
Under this license, readers are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, including commercial use
- No additional restrictions — the licensor cannot revoke these freedoms as long as license terms are followed
3. Attribution Requirements
All uses must include:
- Proper citation of the original work
- Link to the Creative Commons license
- Indication if changes were made to the original work
- No suggestion that the licensor endorses the user or their use
4. Additional Distribution Rights
Authors may:
- Deposit the published version in institutional repositories
- Share through academic social networks
- Include in books, monographs, or other publications
- Post on personal or institutional websites
Requirement: All additional distributions must maintain the CC BY 4.0 license and proper attribution.
5. Self-Archiving and Pre-Print Sharing
Authors are encouraged to:
- Share pre-prints and post-prints online
- Deposit in subject-specific repositories (e.g., arXiv, bioRxiv)
- Engage in scholarly communication throughout the publication process
6. Open Access Commitment
This journal provides immediate open access to all content, supporting the global exchange of knowledge without financial, legal, or technical barriers.