Proceeding International Conference on Digital Education and Social Science
Vol. 3 No. 1 (2025): Proceeding International Conference on Digital Education and Social Science 202

The Influence of Green Investment and CSR on Firm Value of Banking Sector

Suparti (ITEBIS PGRI Dewantara Jombang)
Lilik Pujiati (ITEBIS PGRI Dewantara Jombang)



Article Info

Publish Date
18 Jan 2026

Abstract

The primary objective of this study is to empirically investigate how Green Investment and CSR initiatives influence the firm value of the Indonesian banking sector over the 2020–2024 timeframe. This study was prompted by the increasing attention to sustainability issues and the strengthening of regulatory pressure from the Financial Services Authority (OJK) through POJK No. 51/POJK.03/2017. This regulation mandates that financial institutions adopt sustainable financing frameworks. Adopting a quantitative methodology, this research employs multiple linear regression to examine the interplay between variables. Through purposive sampling, 35 banking firms were identified based on predetermined benchmarks. Green Investment is quantified by the proportion of environmental spending relative to total assets, whereas CSR is assessed via the Corporate Social Responsibility Disclosure Index (CSRDI) aligned with GRI standards. The findings indicate that Green Investment significantly and favorably influences firm value, indicating that environmental initiatives increase investor confidence and market perception. Similarly, CSR was found to exert a significant and favorable impact, indicating that broader social responsibility disclosure contributes to increased company value. Overall, this study highlights the strategic importance of sustainability initiatives in strengthening long-term company value and supporting decision-making for management, investors, and regulators.

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Journal Info

Abbrev

icdess

Publisher

Subject

Computer Science & IT Economics, Econometrics & Finance Education Engineering Social Sciences

Description

The international conference on digital education and social sciences is an international seminar held in collaboration with PB PGRI and APPI PGRI. This seminar is an annual activity and will only start in 2022 with the topic 1. Tackling the digital divide 2. Engage with the new teaching and ...