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Carbon Emission Disclosure and Firm Value: A Study of Manufacturing Firms in Indonesia and Australia

Author

Listed:
  • Pipin Kurnia

    (University of Riau, Riau, Indonesia)

  • D.P. Emrinaldi Nur

    (University of Riau, Riau, Indonesia)

  • Adhitya Agri Putra

    (University of Riau, Riau, Indonesia)

Abstract

This research aims to examine the effect of carbon emission disclosure on firm value in Indonesia and Australia. Research samples are 39 Indonesian manufacturing firms and 25 Australian manufacturing firms. Firm value is measured by Tobin s Q while carbon emission disclosure is measured by the carbon emission disclosure index. Based on analysis data, carbon emission disclosure in Indonesia increases firm value. It indicates carbon emission disclosure brings a competitive advantage for firms to create value. On the other hand, there is no effect of carbon emission disclosure in Australia on firm value. Carbon emission disclosure implementation is costly and leads to higher expenses and lower cash flow.

Suggested Citation

  • Pipin Kurnia & D.P. Emrinaldi Nur & Adhitya Agri Putra, 2021. "Carbon Emission Disclosure and Firm Value: A Study of Manufacturing Firms in Indonesia and Australia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 83-87.
    • Handle: RePEc:eco:journ2:2021-02-11
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    References listed on IDEAS

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    Cited by:

    1. Ma, Xuejiao & Che, Tianqi & Sun, Xiaohua, 2024. "A carbon information disclosure perspective on carbon premium: Evidence from China," Journal of Business Research, Elsevier, vol. 173(C).
    2. Ignatius Edward Riantono & Felicia Wigna Sunarto, 2022. "Factor Affecting Intentions of Indonesian Companies to Disclose Carbon Emission," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 451-459, May.

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    More about this item

    Keywords

    Carbon Emission Disclosure; Firm Value; Indonesia; Australia;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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