THE EFFECT OF CARBON EMISSIONS DISCLOSURE AND ENVIRONMENTAL PERFORMANCE ON FIRM VALUE: THE MODERATING ROLE OF FOREIGN BOARD REPRESENTATION (A STUDY OF ENERGY-SECTOR COMPANIES AND COMPANIES INCLUDED IN THE SRI-KEHATI INDEX LISTED ON THE INDONESIA STOCK EXCHANGE, 2021–2024)

Abstract

This study examines the effect of carbon emission disclosure and environmental performance on firm value, with foreign directors as a moderating variable. The sample consists of 27 energy sector companies and SRI-KEHATI Index companies listed on the IDX during 2021–2024 (108 observations), selected via purposive sampling. Data were analyzed using Fixed Effect panel data regression and Moderated Regression Analysis (MRA) with EViews. Results indicate: (1) carbon emission disclosure has no significant effect on firm value; (2) environmental performance has a positive and significant effect on firm value; (3) foreign directors cannot moderate the relationship between carbon emission disclosure and firm value; and (4) foreign directors cannot strengthen the relationship between environmental performance and firm value. These findings suggest that the market responds more to actual environmental performance reflected in PROPER ratings than to voluntary carbon emission disclosures in Indonesia.