Model Exploration of Firm Value by means of Green Finance Disclosure in Companies List on Indonesia Stock Exchange
Dita Eka Pertiwi Sirait(a*), Ainul Mardhiyah (b), Shintami Octavia (b)

a) Faculty of economics, Universitas Negeri Medan
Jalan Willem Iskandar Psr V, Medan 20221, Indonesia
*ditaekapertiwi[at]unimed.ac.id
b) Faculty of economics, Universitas Negeri Medan
Jalan Willem Iskandar Psr V, Medan 20221, Indonesia

Abstract

The company^s goal is to increase its value. Companies with good performance typically also have good firm value. Various factors can cause fluctuations in firm value, one of which is the implementation of good corporate governance. Corporate governance must be adapted to current conditions, where companies consider not only internal factors but also their impact on the environment. Companies should now utilize green finance principles to reduce their environmental impact and support sustainable development. The issue of green finance has been widely discussed in the past five years. There are 27 energy sector companies listed on the Indonesia Stock Exchange that have routinely submitted sustainability reports as a tangible manifestation of their commitment to implementing sustainable corporate management practices. Governance can be seen from the implementation of a set of standards used by companies to assess environmental, social, and corporate governance performance, better known by the abbreviation ESG. This study aims to examine and analyze the effect of green finance disclosure on company value in Indonesia. Various previous studies have been conducted on this topic, but the results of these studies show that there is still an inconsistent research result between one study and another. It is hoped that this research can be integrated into teaching materials for related courses, such as: capital markets, financial management, introduction to management, and investment management.
The results of this study indicate that the final model selected is the REM (Random Effect Model). Disclosure of environmental aspects (government) has a negative and significant effect on firm value, disclosure of governance aspects has a positive and significant effect on firm value, while disclosure of social and economic aspects does not have a significant effect on firm value.

Keywords: Firm Value, ESG, ESG disclosure

Topic: Economics, Social and Early childhood Education