The Effect of Carbon Emissions Disclosure on Firm Value with Managerial Ownership as a Moderating Variable in Energy Sector Companies Listed on the IDX in 2020-2022

Andamari Oktia Aruti (Perbanas Institute)

Formosa Journal of Multidisciplinary Research (FJMR)
Vol. 4 No. 6 (2025): June 2025

This study aims to investigate how carbon emission disclosure can influences the firm value, with also considering managerial ownership as a moderating variable. This research is conducted on energy sector companies listed on the Indonesia Stock Exchange from 2020 to 2022. Using panel regression analysis on 261 observations, the analysis reveals that carbon emission disclosure has a positive and statistically significant effect on firm value, suggesting that transparent environmental reporting enhances investor trust. Furthermore, managerial ownership strengthens this relationship, indicating that when managers hold equity in the firm, they are more motivated to disclose sustainability practices that support long-term value creation. The study illustrates that aligning corporate governance mechanisms with clear environmental reporting can significantly contribute to enhancing a company’s market value.