Unveiling the Moderating Power of Carbon Emission Disclosure in Ownership–Performance Dynamics

Candy Candy, Nathan Eugene Martono, Hery Haryanto

Abstract


This study aims to analyse the influence of ownership structure on financial performance, as well as the role of Carbon Emission Disclosure (CED) as a moderating variable. The ownership structure analysed includes blockholders' ownership (BO), institutional ownership (IO), foreign ownership (FO), and state ownership (SO). Financial performance is measured using Return on Assets (ROA) and Return on Equity (ROE). Research data was obtained from 525 observations of companies listed on the Indonesia Stock Exchange that disclosed carbon emissions. The regression analysis results show that FO has a positive and significant effect on financial performance, while IO has a significant negative effect. Meanwhile, BO and SO do not show significant effects. Carbon emission disclosure does not significantly affect financial performance and does not moderate the relationship between ownership structure and performance. These findings indicate that foreign ownership plays an important role in driving performance, but awareness of environmental issues such as carbon emissions has not yet become a major factor in corporate decision-making.


Keywords


carbon emission disclosure, financial performance, ownership structure

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References


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DOI: https://doi.org/10.17509/jrak.v13i3.88147

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