The Effect of Green Investment and Green Strategy on Firm Value Empirical Evidence from LQ45 Companies Listed on the Indonesia Stock Exchange (2020–2024)
Article Sidebar
Main Article Content
Abstract
This study examines the effects of green investment and green strategy on firm value among companies included in the LQ45 index and listed on the Indonesia Stock Exchange. Using a quantitative approach and secondary data, this study analyzes the extent to which environmentally oriented corporate practices influence market valuation. The findings indicate that green strategy has a positive and statistically significant effect on firm value, suggesting that a clear and consistent environmental orientation can strengthen investor confidence and enhance corporate reputation. In contrast, green investment has a positive but statistically insignificant effect on firm value, suggesting that its benefits may take longer to materialize or may depend on more transparent disclosure practices to be recognized by the market. Overall, these findings highlight the importance of integrating strategic sustainability initiatives into corporate decision-making to support long-term value creation and improve market perceptions in the context of sustainable finance.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Bhatia, A., & Tuli, S. (2017). Green investments: An emerging concept for sustainable development. International Journal of Research in Management, Economics and Commerce, 7(6), 11–18.
Brigham, E. F., & Houston, J. F. (2019). Fundamentals of financial management (15th ed.). Cengage Learning.
Chen, Y., & Ma, Y. (2021). Does green investment improve energy firm performance?. Energy Policy, 153, 112252.
Diantini, N. N. A., Darmayanti, N. P. A., & Candraningrat, I. R. (2023). Green investing, environmental performance, and firm valuation: Evidence from Indonesia. Indonesian Journal of Sustainability Accounting and Management, 7(2), 329-343.
Gunawan, S. N., Sembiring, F., & Paramita, S. (2024). The Effect of Green Investment, Corporate Social Responsibility, and Good Corporate Governance on Green Company Value Mediated by Return on Investment. JASA (Jurnal Akuntansi, Audit dan Sistem Informasi Akuntansi), 8(3), 673-687.
Keown, A. J., Martin, J. D., Petty, J. W., & Scott, D. F. (2017). Foundations of finance: The logic and practice of financial management (9th ed.). Pearson.
Mahwiyah, S. G. (2024). Pengaruh profitabilitas, leverage dan ukuran perusahaan terhadap penghindaran pajak pada perusahaan manufaktur subsektor makanan dan minuman yang … (pp. 417–423). Retrieved from http://repository.eka-prasetya.ac.id/id/eprint/309
Mubarok, D. S., Hikmah, M. R., & Oktaviani, Y. (2024). Influence of Green Investment and Firm Size On Firm Value Of Sector Energy Firm Listed On Idx 2018-2022. In Iqtishaduna International Conference Proceeding (Vol. 1, pp. 40-45).
Rachmawati, S. (2021). Green strategy moderate the effect of carbon emission disclosure and environmental performance on firm value. International Journal of Contemporary Accounting, 3(2), 133-152.
Wu, J., Liu, B., Zeng, Y., & Luo, H. (2022). Good for the firm, good for the society? Causal evidence of the impact of equity incentives on a firm's green investment. International Review of Economics & Finance, 77, 435-449.
Yusoff, H., & Darus, F. (2019). Green investment and firm performance: Evidence from Malaysian public listed companies. Asian Journal of Accounting and Governance, 12(1), 45–60.
Yusuf, Y. (2020). Determinan Nilai Perusahaan Berdasarkan Kepemilikan dan Aspek Makro Ekonomi. Keberlanjutan: Jurnal Manajemen Dan Jurnal Akuntansi, 5(1), 1-14.
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, 12(5), 1866.