Determinant of Carbon Emission Disclosure and its Impact on Firm Value: Moderating Role of Profitability
DOI:
https://doi.org/10.55927/ijba.v6i4.16874Keywords:
Carbon Emission Disclosure, Firm Value, Profitability, Firm Size, Environmental Management SystemAbstract
This study aims to identify determinants of carbon emission disclosure (CED) and to examine how CED, moderated by profitability, affects firm value. This study employs multiple liner regression to test determinants of CED (firm size, leverage and environmental management system). A moderated regression analysis assesses the effect of CED on firm value with profitability as moderator. Results show firm size is the only significant determinant of CED. This reflects that indicating that larger firms tend to disclose more information related to carbon emissions. Furthermore, this research also revealed that profitability strengthens the positive impact of carbon emission disclosure on firm value, indicating that carbon transparency is more valued by stakeholders when firms demonstrate strong financial performance. This study contributes to the literature on environmental disclosure and firm value by providing empirical evidence on the determinants of carbon emission disclosure and highlighting the moderating role of profitability.
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