Carbon Emission Disclosure and Environmental Performance Effect on Firm Value

Companies as carbon emitters must show their responsibility towards the environment by reducing carbon emissions. In order to gain legitimacy, companies need to disclose their carbon emission and have good environmental performance. These two aspects are very important because they will impact investors' perceptions and the value of the firm. This paper determines the impact of the disclosure of carbon emissions and environmental performance on firm value. The sample is seven companies on the SRI-KEHATI index from 2016-2020 (5 years). This study used quantitative methods. The secondary data is obtained from published financial reports by the Indonesia Stock Exchange (www.idx.com), sustainability reports, annual reports published through the company's website, and the Ministry of Environment and Forestry's Decree about the PROPER selection from (proper.menlhk.go.id). In order to test the hypothesis, multiple linear regression is used. This study result shows that: carbon emission disclosure has no affect the firm's value. While the environmental performance positively affects the firm value, the carbon emission disclosure and environmental performance positively affects firm's value.