Climate change impact on indonesian firm value: Exploring the moderating role of accounting conservatism

Climate change is one of the risks that can occur in countries across the equator, such as Indonesia. Apart from its geographical location, the industrial sector is one of Indonesia’s highest contributors to emissions. This research examines the impact of climate change and greenhouse gas (GHG) emis...

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Published in:Edelweiss Applied Science and Technology
Main Author: Sayuti A.; Mohammed N.F.; Amirrudin M.S.
Format: Article
Language:English
Published: Learning Gate 2024
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85205709463&doi=10.55214%2f25768484.v8i5.1679&partnerID=40&md5=9c41f6d3ef69cd770d6883c1b99b740a
id 2-s2.0-85205709463
spelling 2-s2.0-85205709463
Sayuti A.; Mohammed N.F.; Amirrudin M.S.
Climate change impact on indonesian firm value: Exploring the moderating role of accounting conservatism
2024
Edelweiss Applied Science and Technology
8
5
10.55214/25768484.v8i5.1679
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85205709463&doi=10.55214%2f25768484.v8i5.1679&partnerID=40&md5=9c41f6d3ef69cd770d6883c1b99b740a
Climate change is one of the risks that can occur in countries across the equator, such as Indonesia. Apart from its geographical location, the industrial sector is one of Indonesia’s highest contributors to emissions. This research examines the impact of climate change and greenhouse gas (GHG) emissions on firm value, moderated by accounting conservatism. Firm value is measured by Tobin’s Q and the market-to-book ratio. The sample consists of high-profile manufacturing industries listed on the Indonesia Stock Exchange in 2020-2021, totalling 208 companies. The results show that climate change, GHG emission issues, and accounting conservatism significantly affect firm value, both directly and moderately. Furthermore, firm value measured using the market-to-book ratio is more sensitive than when measured using Tobin's Q. This study provides a different perspective on sustainability issues and contributes to signalling theory by testing non-financial and financial performance using the same model. To improve sustainability performance, firms and governments should consider the research findings when developing policies and regulations addressing environmental challenges. © 2024 by the authors.
Learning Gate
25768484
English
Article
All Open Access; Gold Open Access
author Sayuti A.; Mohammed N.F.; Amirrudin M.S.
spellingShingle Sayuti A.; Mohammed N.F.; Amirrudin M.S.
Climate change impact on indonesian firm value: Exploring the moderating role of accounting conservatism
author_facet Sayuti A.; Mohammed N.F.; Amirrudin M.S.
author_sort Sayuti A.; Mohammed N.F.; Amirrudin M.S.
title Climate change impact on indonesian firm value: Exploring the moderating role of accounting conservatism
title_short Climate change impact on indonesian firm value: Exploring the moderating role of accounting conservatism
title_full Climate change impact on indonesian firm value: Exploring the moderating role of accounting conservatism
title_fullStr Climate change impact on indonesian firm value: Exploring the moderating role of accounting conservatism
title_full_unstemmed Climate change impact on indonesian firm value: Exploring the moderating role of accounting conservatism
title_sort Climate change impact on indonesian firm value: Exploring the moderating role of accounting conservatism
publishDate 2024
container_title Edelweiss Applied Science and Technology
container_volume 8
container_issue 5
doi_str_mv 10.55214/25768484.v8i5.1679
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85205709463&doi=10.55214%2f25768484.v8i5.1679&partnerID=40&md5=9c41f6d3ef69cd770d6883c1b99b740a
description Climate change is one of the risks that can occur in countries across the equator, such as Indonesia. Apart from its geographical location, the industrial sector is one of Indonesia’s highest contributors to emissions. This research examines the impact of climate change and greenhouse gas (GHG) emissions on firm value, moderated by accounting conservatism. Firm value is measured by Tobin’s Q and the market-to-book ratio. The sample consists of high-profile manufacturing industries listed on the Indonesia Stock Exchange in 2020-2021, totalling 208 companies. The results show that climate change, GHG emission issues, and accounting conservatism significantly affect firm value, both directly and moderately. Furthermore, firm value measured using the market-to-book ratio is more sensitive than when measured using Tobin's Q. This study provides a different perspective on sustainability issues and contributes to signalling theory by testing non-financial and financial performance using the same model. To improve sustainability performance, firms and governments should consider the research findings when developing policies and regulations addressing environmental challenges. © 2024 by the authors.
publisher Learning Gate
issn 25768484
language English
format Article
accesstype All Open Access; Gold Open Access
record_format scopus
collection Scopus
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