Golden Ratio of Data in Summary
Vol. 6 No. 4 (2026): August - October

The Effect of Green Investment and Green Strategy on Firm Value: Empirical Evidence from LQ45 Companies Listed on the Indonesia Stock Exchange (2020–2024)

Nahrul Ebim (Universitas Pamulang)
Fransiskus Ruben Thiodorus (Universitas Pamulang)
Jesicca Meylia Paskia (Universitas Pamulang)
Bela Nurhayani (Universitas Pamulang)
Dedra Septiaziza Muslim (Universitas Pamulang)
Mahwiyah Mahwiyah (Universitas Pamulang)



Article Info

Publish Date
26 Oct 2026

Abstract

This study examines the effects of green investment and green strategy on firm value among companies included in the LQ45 index and listed on the Indonesia Stock Exchange. Using a quantitative approach and secondary data, this study analyzes the extent to which environmentally oriented corporate practices influence market valuation. The findings indicate that green strategy has a positive and statistically significant effect on firm value, suggesting that a clear and consistent environmental orientation can strengthen investor confidence and enhance corporate reputation. In contrast, green investment has a positive but statistically insignificant effect on firm value, suggesting that its benefits may take longer to materialize or may depend on more transparent disclosure practices to be recognized by the market. Overall, these findings highlight the importance of integrating strategic sustainability initiatives into corporate decision-making to support long-term value creation and improve market perceptions in the context of sustainable finance.

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Journal Info

Abbrev

grdis

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

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