THE ROLE OF CORPORATE GOVERNANCE AS A MODERATING VARIABLE OF THE INFLUENCE OF CARBON EMISSION DISCLOSURE ON FIRM VALUE

Abstract

This research aims to test and analyze the effect of carbon emissions disclosure on company value, as well as to examine the role of corporate governance mechanisms in moderating this relationship. This research uses quantitative methods with secondary data in the form of annual and sustainability reports of non-cyclical consumer, energy, industrial and logistics transportation sector companies listed on the Indonesia Stock Exchange (BEI) for the 2018 - 2022 period with a total of 37 samples and 185 data observations. The analysis used in this research is descriptive statistical analysis, panel data regression analysis, and moderated regression analysis (MRA) with the help of Eviews 10 software. The results of this research show that disclosure of carbon emissions has a positive and significant effect on environmental values. However, the corporate governance mechanism of independent commissioners and institutional ownership cannot moderate the positive relationship between carbon emission disclosure and firm value. Meanwhile, the corporate governance mechanism of the board of commissioners can strengthen the positive relationship between carbon emission disclosure and company value. It is hoped that companies can continue to increase their level of voluntary disclosure in order to gain a positive image from stakeholders which will lead to sustainability and financial and non-financial benefits.