The Moderating Role Of Good Corporate Governance In The Relationship Between Green Innovation, Environmental Disclosure And Firm Value

Samhadi; Roekhudin; Syaiful Iqbal

doi:10.22219/jrak.v14i3.33925

Authors

Samhadi Fakultas Ekonomi dan Bisnis, Universitas Brawijaya, Malang, Indonesia
Roekhudin Fakultas Ekonomi dan Bisnis, Universitas Brawijaya, Malang, Indonesia
Syaiful Iqbal Fakultas Ekonomi dan Bisnis, Universitas Brawijaya, Malang, Indonesia

DOI:

https://doi.org/10.22219/jrak.v14i3.33925

Keywords:

Environmental Disclosure, Firm Value, Good Corporate Governance, Green Innovation

Abstract

Purpose: This research examines and analyses the effect of green innovation and environmental disclosure on firm value. This study also adds the role of good corporate governance as a moderating variable on the relationship between green innovation and environmental disclosure with firm value.

Methodology/approach: This research uses an explanatory method with a quantitative approach.

Findings: The results of this study indicate that environmental disclosure has a positive effect on firm value, while green innovation has no effect on firm value. Furthermore, the results of the moderation regression analysis show that the role of good governance can strengthen the relationship between green innovation and environmental disclosure with firm value.

Practical implications: This research is expected to be a consideration for investors so that companies can implement good corporate governance through green innovation and environmental disclosure as a form of concern for the environment and sustainability.

Originality/value: This study adds the moderating variable of good corporate governance, which is thought to have a combined influence in the relationship between green innovation and environmental disclosure on firm value which aims to answer the inconsistency of previous research findings. This study also uses a research sample with the latest year, thus providing research results that are relevant to current conditions.

Downloads

Download data is not yet available.

References

Abdi, Y., Li, X., & Càmara-Turull, X. (2022). Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age. Environment, Development and Sustainability, 24(4), 5052–5079. https://doi.org/10.1007/s10668-021-01649-w

Aboud, A., & Diab, A. (2018). The impact of social, environmental and corporate governance disclosures on firm value: Evidence from Egypt. Journal of Accounting in Emerging Economies, 8(4), 442–458. https://doi.org/10.1108/JAEE-08-2017-0079

Agustia, D., Sawarjuwono, T., & Dianawati, W. (2019). The mediating effect of environmental management accounting on green innovation - Firm value relationship. International Journal of Energy Economics and Policy, 9(2), 299–306. https://doi.org/10.32479/ijeep.7438

Amalya, W. R., Sukoharsono, E. G., & Sidarta, A. L. (2023). The Relationship of Green Accounting on Financial Performance with Environmental Performance as a Mediation Variable. Atlantis Press International BV. https://doi.org/10.2991/978-94-6463-140-1_2

Angela, T., & Sari, N. (2023). The Effect of Environmental, Social, and Governance Disclosure on Firm Value. E3S Web of Conferences, 426. https://doi.org/10.1051/e3sconf/202342601078

Chen, S., Song, Y., & Gao, P. (2023). Environmental, social, and governance (ESG) performance and financial outcomes: Analyzing the impact of ESG on financial performance. Journal of Environmental Management, 345(June), 118829. https://doi.org/10.1016/j.jenvman.2023.118829

Damas, D., Maghviroh, R. EL, & Meidiyah, M. (2021). Pengaruh Eco-Efficiency, Green Inovation Dan Carbon Emission Disclosure Terhadap Nilai Perusahaan Dengan Kinerja Lingkungan Sebagai Moderasi. Jurnal Magister Akuntansi Trisakti, 8(2), 85–108. https://doi.org/10.25105/jmat.v8i2.9742

Daromes, F. E., & Kawilarang, M. F. (2020). Peran Pengungkapan Lingkungan Dalam Memediasi Pengaruh Kinerja Lingkungan Terhadap Nilai Perusahaan. Jurnal Akuntansi, 14(1), 77–101. http://ejournal.atmajaya.ac.id/index.php/JARA/article/view/1263

Deegan, C. (2014). Financial accounting theory (4th edition). McGraw-Hill Education (Australia).

Dewantari, N. L. S., Cipta, W., & Susila, G. P. A. J. (2020). Pengaruh Ukuran Perusahaan Dan Leverage Serta Profitabilitas Terhadap Nilai Perusahaan Pada Perusahaan Food and Beverages Di Bei. Prospek: Jurnal Manajemen Dan Bisnis, 1(2), 74. https://doi.org/10.23887/pjmb.v1i2.23157

Dewi, R., & Rahmianingsih, A. (2020). Meningkatkan Nilai Perusahaan Melalui Green Innovation Dan Eco-Effisiensi. Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan Dan Akuntansi, 12(2), 225–243. https://doi.org/10.35313/ekspansi.v12i2.2241

Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45–64. https://doi.org/10.1016/j.gfj.2017.03.001

Fauziah, D. A., Sukoharsono, E. G., & Saraswati, E. (2021). Corporate Social Responsibility Disclosure, Investment Efficiency, Innovation, and Firm Value. Assets: Jurnal Akuntansi Dan Pendidikan, 10(1), 11. https://doi.org/10.25273/jap.v10i1.6259

Heshmati, A. (2018). An empirical survey of the ramifications of a green economy. International Journal of Green Economics, 12(1), 53–85. https://doi.org/10.1504/ijge.2018.092359

Hsu, C. C., Quang-Thanh, N., Chien, F. S., Li, L., & Mohsin, M. (2021). Evaluating green innovation and performance of financial development: mediating concerns of environmental regulation. Environmental Science and Pollution Research, 28(40), 57386–57397. https://doi.org/10.1007/s11356-021-14499-w

Husnaini, W., & Tjahjadi, B. (2021). Quality management, green innovation and firm value: Evidence from indonesia. International Journal of Energy Economics and Policy, 11(1), 255–262. https://doi.org/10.32479/ijeep.10282

Indrawati, N., L, A. A., . R., & Mutia Basri, Y. (2023). The Effect of Intellectual Capital and Corporate Governance on Company Performance and its Impact on Firm Value. KnE Social Sciences, 2023, 217–232. https://doi.org/10.18502/kss.v8i13.13759

Indriastuti, M., & Kartika, I. (2021). Improving Firm Value through Intellectual Capital, Good Corporate Governance and Financial Performance. Jurnal Ilmiah Akuntansi, 6(1), 85. https://doi.org/10.23887/jia.v6i1.30993

Ismiyatun, I., Aryani, N., & Ispriyahadi, H. (2021). Determinants of firm value: evidence from listed insurance companies in Indonesia. Diponegoro International Journal of Business, 4(2), 82–94. https://doi.org/10.14710/dijb.4.2.2021.82-94

Jeanice, & Kim, S. S. (2023). Pengaruh Penerapan Environmentan, Social, andGovernance Terhadap Nilai Perusahaan di Indonesia. Owner (Riset & Jurnal Akuntansi), 7(2), 1646–1653.

Karina, D. R. M., & Setiadi, I. (2020). Pengaruh Csr Terhadap Nilai Perusahaan Dengan Gcg Sebagai Pemoderasi. Jurnal Riset Akuntansi Mercu Buana, 6(1), 37. https://doi.org/10.26486/jramb.v6i1.1054

Kawi, Y. A. S., & Natalylova, K. (2022). Pengaruh Environmental Disclosure, Social Disclosure, Profitabilitas, Dan Faktor Lain Terhadap Nilai Perusahaan. E-Jurnal Akuntansi TSM, 2(3), 381–392. https://doi.org/10.34208/ejatsm.v2i3.1715

Li, L., Msaad, H., Sun, H., Tan, M. X., Lu, Y., & Lau, A. K. W. (2020). Green innovation and business sustainability: New evidence from energy intensive industry in China. International Journal of Environmental Research and Public Health, 17(21), 1–18. https://doi.org/10.3390/ijerph17217826

Li, Y., Gong, M., Zhang, X. Y., & Koh, L. (2018). The impact of environmental, social, and governance disclosure on firm value: The role of CEO power. British Accounting Review, 50(1), 60–75. https://doi.org/10.1016/j.bar.2017.09.007

Liu, L. (2023). Green innovation, firm performance, and risk mitigation: evidence from the USA. Environment, Development and Sustainability, 0123456789. https://doi.org/10.1007/s10668-023-03632-z

Maharani, Z., & Sudibijo, Y. A. (2023). Pengaruh Green Innovation, Environmental Management Accounting Dan Environmental Strategy Terhadap Environmental Performance Dengan Code of Conduct Sebagai Pemoderasi. Jurnal Ekonomi Trisakti, 3(1), 1861–1870. https://doi.org/10.25105/jet.v3i1.15580

Mar’ati, F. S., & Darsono, D. (2023). The Impact of Environmental Performance and Environmental Disclosures on Economic Performance. Accounting Analysis Journal, 11(1), 54–63. https://doi.org/10.15294/aaj.v11i1.59280

Miles, D. A. (2017). A taxonomy of research gaps: Identifying and defining the seven research gaps methodological gap. Doctoral Student Workshop: Finding Research Gaps - Research Methods and Strategies, August, 1–15. https://www.researchgate.net/profile/Sanusi-Sani-Maimagani/post/What-is-a-research-gap-or-knowledge-gap-in-research-and-literature-Is-gap-explored-or-constructed-How-can-gap-in-research-be-identified/attachment/612e5570647f3906fc94fab2/AS%3A10628998501539

Pan, Y. (2022). Green Innovation, Environmental Information Disclosure and Firm Value. 558–569. https://doi.org/10.2991/978-94-6463-036-7_83

Permatasari, F., & Widianingsih, L. P. (2020). Pengungkapan Corporate Social Responsibility Terhadap Kinerja Keuangan Dengan Good Corporate Governance Sebagai Variabel Moderasi. Media Akuntansi Dan Perpajakan Indonesia, 1(2), 87–114. https://doi.org/10.37715/mapi.v1i2.1404

Pokhariyal, G. (2019). Importance of moderating and intervening variables on the relationship between independent and dependent variables. International Journal of Statistics and Applied Mathematics, 4(5), 1–4. www.mathsjournal.com

Putra, M. T. S., & Putri, I. G. A. M. A. D. (2022). Pengaruh Pengungkapan Corporate Social Responsibility terhadap Nilai Perusahaan dengan Good Corporate Governance sebagai Variabel Pemoderasi. E-Jurnal Akuntansi, 32(5), 1317. https://doi.org/10.24843/eja.2022.v32.i05.p15

Putri Fabiola, V., & Khusnah, H. (2022). Pengaruh Green Innovation Dan Kinerja Keuangan Pada Competitive Advantage Dan Nilai Perusahaan Tahun 2015-2020. Media Mahardhika, 20(2), 295–303. https://doi.org/10.29062/mahardika.v20i2.346

Putri, J., Budiyanto, B., Triyonowati, T., & Ilham, I. (2023). Growth, Intellectual Capital, Financial Performance And Firm Value : Evidence From Indonesia Automotive Firms. International Journal of Science, Technology & Management, 4(1), 139–146. https://doi.org/10.46729/ijstm.v4i1.723

Qiu, Y., Shaukat, A., & Tharyan, R. (2016). Environmental and social disclosures: Link with corporate financial performance. British Accounting Review, 48(1), 102–116. https://doi.org/10.1016/j.bar.2014.10.007

Roza Mulyadi, & Maulana, R. (2022). Pengaruh Green Innovation Terhadap Firm Value Dengan Environmental Management Accounting Sebagai Variabel Intervening. Accounting and Management Journal, 6(2), 1–12. https://doi.org/10.33086/amj.v6i2.3325

Safitri, V. A., Sari, L., & Gamayuni, R. R. (2019). Research and Development, Environmental Investments, to Eco-Efficiency, and Firm Value. The Indonesian Journal of Accounting Research, 22(03), 377–396. https://doi.org/10.33312/ijar.446

Saputra, M. F. M. (2020). Pengaruh Kinerja Lingkungan Dan Biaya Lingkungan Terhadap Kinerja Keuangan Dengan Pengungkapan Lingkungan Sebagai Variabel Intervening (Studi Empiris Pada Perusahaan Pertambangan Yang Terdaftar di BEI Tahun 2014-2018. Jurnal Riset Akuntansi Tirtayasa, 5(2), 123–138. https://doi.org/10.48181/jratirtayasa.v5i2.8956

Saraswati, W., Sukoharsono, E. G., Saraswati, E., & Prastiwi, A. (2022). The Effect Of Sustainability Reporting Practices On The Quality Of CSR Disclosures In Banking In Indonesia. International Journal of Environmental, Sustainability, and Social Science, 3(3), 644–653. https://doi.org/10.38142/ijesss.v3i3.264

Sekaran, U., & Bougie, R. (2017). Metodologi Penelitian Untuk Bisnis Pendekatan Pengembangan Keahlian (6 (Enam)). Salemba Empat.

Sila, I., & Cek, K. (2017). The impact of environmental, social and governance dimensions of corporate social responsibility: Australian evidence. Procedia Computer Science, 120, 797–804. https://doi.org/10.1016/j.procs.2017.11.310

Söderholm, P. (2020). The green economy transition: the challenges of technological change for sustainability. Sustainable Earth, 3(1). https://doi.org/10.1186/s42055-020-00029-y

Sumarno, D. C., Andayani, W., & Prihatiningtyas, Y. W. (2023). The Effect of Environmental, Social and Governance (ESG) Assessment on Firm Value with Profitability as a Mediating Variable. Asia Pacific Management and Business Application, 12(1), 55–64. https://doi.org/10.21776/ub.apmba.2023.012.01.4

Susanti, N. D., & Handayani, S. (2022). Peran moderasi good corporate governance pada hubungan corporate social responsibility dengan nilai perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 4(11), 4848–4856. https://doi.org/10.32670/fairvalue.v4i11.1816

Ting, I. W. K., Azizan, N. A., Bhaskaran, R. K., & Sukumaran, S. K. (2020). Corporate social performance and firm performance: Comparative study among developed and emerging market firms. Sustainability (Switzerland), 12(1). https://doi.org/10.3390/SU12010026

Tonay, C., & Murwaningsari, E. (2022). Pengaruh Green Innovation Dan Green Intellectual Capital. Jurnal Bisnis Dan Akuntansi, 24(2), 283–294.

Utomo, D., Machmuddah, Z., & Hapsari, D. I. (2022). Sizing Up Integrated Reporting Disclosure and Value: The Indonesia and Singapore Cases. Proceedings of the 2nd International Conference on Industry 4.0 and Artificial Intelligence (ICIAI 2021), 175(Iciai 2021), 58–61. https://doi.org/10.2991/aisr.k.220201.011

Wu, H., & Li, J. (2023). The relationship between environmental disclosure and financial performance: mediating effect of economic development and information penetration. Economic Research-Ekonomska Istrazivanja , 36(1), 116–142. https://doi.org/10.1080/1331677X.2022.2072355

Xie, Z., Wang, J., & Zhao, G. (2022). Impact of Green Innovation on Firm Value: Evidence From Listed Companies in China’s Heavy Pollution Industries. Frontiers in Energy Research, 9(January), 1–17. https://doi.org/10.3389/fenrg.2021.806926

Yao, Q., Huang, L., & Li, M. (2019). The effects of tech and non-tech innovation on brand equity in China: The role of institutional environments. PLoS ONE, 14(5), 1–24. https://doi.org/10.1371/journal.pone.0215634

Zhang, F., Qin, X., & Liu, L. (2020). The interaction effect between ESG and green innovation and its impact on firm value from the perspective of information disclosure. Sustainability (Switzerland), 12(6). https://doi.org/10.3390/su12051866

Zulfia, N., & Widijoko, G. (2019). Pengaruh Corporate Social Responsibility Dan Profitabilitas Terhadap Nilai Perusahaan Dengan Good Corporate Governance Sebagai Variabel Pemoderasi. Jurnal Ilmiah Mahasiswa FEB UB, 7(2), 1–24.