Green Gains: The Role of Environmental Initiatives and Intellectual Capital in Enhancing Firm Value in Emerging Markets
Abstract
This study explores how intellectual capital management and environmental sustainability contribute to enhancing firm value in competitive markets. It addresses a critical knowledge gap by examining the interplay between sustainability, innovation, and firm value in emerging markets, with integrated reporting considered as a moderating variable. Through panel regression analysis of 252 observations within the consumer cyclicals sector from 2021 to 2023, the findings reveal that environmental performance has a significant and positive impact on firm value. In contrast, intellectual capital does not exhibit a direct influence on firm value. Furthermore, integrated reporting weakens the relationship between environmental performance and firm value but does not moderate the link between intellectual capital and firm value. These results provide practical insights for firms seeking to refine their sustainability strategies in competitive markets and contribute to the academic discourse on the role of integrated reporting as a moderating factor in the nexus of sustainability, innovation, and value creation.
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References
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Dzahabiyya, J., Jhoansyah, D., & Deni Muhammad Danial, R. (2020). Analisis Nilai Perusahaan Dengan Model Rasio Tobin’s Q. In Jurnal Riset Akuntansi dan Keuangan Dewantara (Vol. 4, Issue 1). http://ejournal.stiedewantara.ac.id/index.php/JAD/issue/view/49
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Freeman, R. E., Dmytriyev, S. D., & Phillips, R. A. (2021). Stakeholder Theory and the Resource-Based View of the Firm. Journal of Management, 47(7), 1757–1770. https://doi.org/10.1177/0149206321993576
Grassmann, M. (2021). The Relationship Between Corporate Social Responsibility Expenditures And Firm Value: The Moderating Role Of Integrated Reporting. Journal of Cleaner Production, 285. https://doi.org/10.1016/j.jclepro.2020.124840
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Krause, T. A., & Tse, Y. (2016). Risk management and firm value: Recent theory and evidence. International Journal of Accounting and Information Management, 24(1), 56–81. https://doi.org/10.1108/IJAIM-05-2015-0027
Lang, L. H. P., & Stulz, R. M. (1994). Tobin’s q, Corporate Diversification, and Firm Performance. Journal of Political Economy, 102(6). http://www.journals.uchicago.edu/t-and-c
Lukman, H., & Tanuwijaya, H. (2021). The Effect of Financial Performance and Intellectual Capital on Firm Value with CSR as a Mediating Variable in Banking Industry. Proceedings of the Ninth International Conference on Entrepreneurship and Business Management (ICEBM 2020). https://doi.org/https://doi.org/10.2991/aebmr.k.210507.054
Mulyana, R. N. (2023, February 19). Prospek Saham Consumer Cyclicals di tengah Rotasi Sektor dan Pemantauan Khusus. https://investasi.kontan.co.id/news/prospek-saham-consumer-cyclicals-di-tengah-rotasi-sektor-dan-pemantauan-khusus
Myers, S. C. (1984). The Capital Structure Puzzle. The Journal of Finance, 39(3), 574–592. https://doi.org/10.1111/j.1540-6261.1984.tb03646.x
Napitupulu, R. B., Simanjuntak, T. P., Hutabarat, L., Damanik, H., Harianja, H., Sirait, R. T. M., & Ria, C. E. (2021). Penelitian Bisnis, Teknik dan Analisis Data dengan SPSS-STATA-EVIEWS. Madenatera.
Ni, Y., Cheng, Y. R., & Huang, P. (2020). Do intellectual capitals matter to firm value enhancement? Evidences from Taiwan. Journal of Intellectual Capital, 22(4), 725–743. https://doi.org/10.1108/JIC-10-2019-0235
Nuryaman. (2015). The Influence of Intellectual Capital on The Firm’s Value with The Financial Performance as Intervening Variable. Procedia - Social and Behavioral Sciences, 211, 292–298. https://doi.org/10.1016/j.sbspro.2015.11.037
Prawirasasra, K. P. (2015). Analysis of Relationship of Environmental Performance and Firm Value. Advances in Economics, Business and Management Research. https://doi.org/https://doi.org/10.2991/iceb-15.2015.31
Pulic, A. (2004). Intellectual capital – does it create or destroy value? Measuring Business Excellence, 8(1), 62–68. https://doi.org/10.1108/13683040410524757
Putra, I. N. W. A., & Ratnadi, N. M. D. (2021). Intellectual Capital and Its Disclosure on Firm Value. International Journal of Finance & Banking Studies (2147-4486), 10(1), 86–95. https://doi.org/10.20525/ijfbs.v10i1.1108
Rahman, F. A., Ramadhan, S. D., & Saputra, D. (2024). The Effect of Female Directors, Board Size, Independent Commissioners and Quality of Earnings Ratio on the Integrated Reporting Quality with Political Connection as a Moderating Variable. Asia Proceedings of Social Science, 12(1). https://doi.org/https://doi.org/10.31580/631bre80
Ramadhan, S. D., Saputra, D., & Nawas, A. (2024). The Effect of Female Directors, Board Size, Independent Commissioners, and Political Connections on Tax Avoidance With Integrated Reporting Quality as a Mediating Variable: Case Study of Non-Cyclical Consumer Goods Sector Companies Listed on Idx 2019-2022. Asia Proceedings of Social Science, 12(1). https://doi.org/https://doi.org/10.31580/bej75y53
Rinsman, T. C. S., & Prasetyo, A. B. (2020). The Effects of Financial and Environmental Performances on Firm Value with Environmental Disclosure as an Intervening Variable. Jurnal Dinamika Akuntansi, 12(2), 90–99. https://doi.org/10.15294/jda.v12i2.24003
Saputra, D., & Arifin, Z. D. (2024). The Effect Of Green Accounting, Assets Turnover, Eco-Efficiency, And Financial Constraints On Firm Value. International Conference On Law And Social Sciences.
Saputra, W. S., Saputra, Y., Koswara, K., Wahyu Herawati, S., & Sae, L. A. S. A. (2023). The Effect of Enterprise Risk Management and Intellectual Capital Disclosure on Firm Value. Dinasti International Journal of Education Management and Social Science, 4(3). https://doi.org/10.31933/dijemss.v4i3
Septiani, E., Holiawati, & Ruhiyat, E. (2019). Environmental Performance, Intellectual Capital, Praktik Penghindaran Pajak dan Nilai Perusahaan. 21(1), 61–70. https://doi.org/https://doi.org/10.34208/jba.v21i1.426
Subaida, I., Nurkholis, & Endang, M. (2018). Effect of Intellectual Capital and Intellectual Capital Disclosure on Firm Value. JAM: Jurnal Aplikasi Manajemen, 16(1). https://doi.org/10.21776/ub.jam.2018.016
Tobin, J. (1969). A General Equilibrium Approach To Monetary Theory. Journal of Money, Credit and Banking, 1(1), 15–19.
Ulum, I. (2013). Model Pengukuran Kinerja Intellectual Capital Dengan Ib-Vaic Di Perbankan Syariah. INFERENSI, Jurnal Penelitian Sosial Keagamaan, 7(1), 185. https://inferensi.iainsalatiga.ac.id/index.php/inferensi/article/view/209
Vitolla, F., Raimo, N., & Rubino, M. (2019). Appreciations, Criticisms, Determinants, And Effects Of Integrated Reporting: A Systematic Literature Review. Corporate Social Responsibility and Environmental Management, 26(2), 518–528. https://doi.org/10.1002/csr.1734
Woolley, M. (1992). Using statistics for desk research. Aslib Proceedings, 44(5). https://doi.org/https://doi.org/10.1108/eb051276
Yadav, P. L., Han, S. H., & Rho, J. J. (2015). Impact of Environmental Performance on Firm Value for Sustainable Investment: Evidence from Large US Firms. Business Strategy and the Environment, 25(6), 402–420. https://doi.org/10.1002/bse.1883
Yu, M., & Zhao, R. (2015). Sustainability and firm valuation: An international investigation. International Journal of Accounting and Information Management, 23(3), 289–307. https://doi.org/10.1108/IJAIM-07-2014-0050
Arifin, Z. D., & Saputra, D. (2024). Financial Constraints vs Green Practices: Impact on Firm Value Energy in Indonesia. Agregat: Jurnal Ekonomi Dan Bisnis, 7(2), 153–173. https://doi.org/10.22236/agregat_vol7.i2/16369
Beaver, W., Kettler, P., & Scholes, M. (1970). The Association between Market Determined and Accounting Determined Risk Measures. Source: The Accounting Review, 45(4), 654–682. https://www.jstor.org/stable/244204
Belo, F., Gala, V. D., Salomao, J., & Vitorino, M. A. (2022). Decomposing firm value. Journal of Financial Economics, 143(2), 619–639. https://doi.org/10.1016/j.jfineco.2021.08.007
Child, J. W., & Marcoux, A. M. (1999). Freeman and Evan: Stakeholder Theory in the Original Position. In Quarterly (Vol. 9, Issue 2). http://www.jstor.orgURL:http://www.jstor.org/stable/3857472
DEFRA. (2011). Environmental Key Performance Indicators Reporting Guidelines for UK Business. Gov.UK. www.defra.gov.uk
Deswanto, R. B., & Siregar, S. V. (2018). The associations between environmental disclosures with financial performance, environmental performance, and firm value. Social Responsibility Journal, 14(1), 180–193. https://doi.org/10.1108/SRJ-01-2017-0005
Dzahabiyya, J., Jhoansyah, D., & Deni Muhammad Danial, R. (2020). Analisis Nilai Perusahaan Dengan Model Rasio Tobin’s Q. In Jurnal Riset Akuntansi dan Keuangan Dewantara (Vol. 4, Issue 1). http://ejournal.stiedewantara.ac.id/index.php/JAD/issue/view/49
Effendi, B. (2021). The Impact of Environmental Performance on Firm Value: Evidence from Indonesia. Advances in Economics, Business and Management Research, 7. https://doi.org/https://doi.org/10.2991/aebmr.k.210416.021
Firdaus, Saputra, D., & Allif Ananda, Y. (2024). The Effect Of Green Accounting, Carbon Emission, Eco-Efficiency, And Gender Diversity On Firm Value. International Conference on Law and Social Science, 2024: International Conference on Law and Social Sciences (ICLSS 2024).
Freeman, R. E., Dmytriyev, S. D., & Phillips, R. A. (2021). Stakeholder Theory and the Resource-Based View of the Firm. Journal of Management, 47(7), 1757–1770. https://doi.org/10.1177/0149206321993576
Grassmann, M. (2021). The Relationship Between Corporate Social Responsibility Expenditures And Firm Value: The Moderating Role Of Integrated Reporting. Journal of Cleaner Production, 285. https://doi.org/10.1016/j.jclepro.2020.124840
Gujarati, D. N., & Porter, D. C. (2004). Basic Econometrics (A. E. Hilbert & N. Fox, Eds.; 5th ed.). Douglas Reiner.
Hall, M., & Weiss, L. (1967). Firm Size and Profitability. The Review of Economics and Statistics, 49(3), 319–331.
Hassel, L., Nilsson, H., & Nyquist, S. (2011). The Value Relevance Of Environmental Performance. European Accounting Review, 14(1), 41–61. https://doi.org/10.1080/0963818042000279722
IFRS Foundation. (2013). The International
Ilinitch, A. Y., Soderstrom, N. S., & Thomas, T. E. (1998). Measuring corporate environmental performance. Journal of Accounting and Public Policy, 17, 383–408. https://doi.org/https://doi.org/10.1016/S0278-4254(98)10012-1
Jensen, M. C., & Meckling, W. H. (1976). Theory Of The Firm: Managerial Behavior, Agency Costs And Ownership Structure. In Journal of Financial Economics (Vol. 3). Q North-Holland Publishing Company.
Konar, S., & Cohen, M. A. (2001). Does The Market Value Environmental Performance? The Review of Economics and Statistics, 83(2), 281–289. https://doi.org/https://doi.org/10.1162/00346530151143815
Krause, T. A., & Tse, Y. (2016). Risk management and firm value: Recent theory and evidence. International Journal of Accounting and Information Management, 24(1), 56–81. https://doi.org/10.1108/IJAIM-05-2015-0027
Lang, L. H. P., & Stulz, R. M. (1994). Tobin’s q, Corporate Diversification, and Firm Performance. Journal of Political Economy, 102(6). http://www.journals.uchicago.edu/t-and-c
Lukman, H., & Tanuwijaya, H. (2021). The Effect of Financial Performance and Intellectual Capital on Firm Value with CSR as a Mediating Variable in Banking Industry. Proceedings of the Ninth International Conference on Entrepreneurship and Business Management (ICEBM 2020). https://doi.org/https://doi.org/10.2991/aebmr.k.210507.054
Mulyana, R. N. (2023, February 19). Prospek Saham Consumer Cyclicals di tengah Rotasi Sektor dan Pemantauan Khusus. https://investasi.kontan.co.id/news/prospek-saham-consumer-cyclicals-di-tengah-rotasi-sektor-dan-pemantauan-khusus
Myers, S. C. (1984). The Capital Structure Puzzle. The Journal of Finance, 39(3), 574–592. https://doi.org/10.1111/j.1540-6261.1984.tb03646.x
Napitupulu, R. B., Simanjuntak, T. P., Hutabarat, L., Damanik, H., Harianja, H., Sirait, R. T. M., & Ria, C. E. (2021). Penelitian Bisnis, Teknik dan Analisis Data dengan SPSS-STATA-EVIEWS. Madenatera.
Ni, Y., Cheng, Y. R., & Huang, P. (2020). Do intellectual capitals matter to firm value enhancement? Evidences from Taiwan. Journal of Intellectual Capital, 22(4), 725–743. https://doi.org/10.1108/JIC-10-2019-0235
Nuryaman. (2015). The Influence of Intellectual Capital on The Firm’s Value with The Financial Performance as Intervening Variable. Procedia - Social and Behavioral Sciences, 211, 292–298. https://doi.org/10.1016/j.sbspro.2015.11.037
Prawirasasra, K. P. (2015). Analysis of Relationship of Environmental Performance and Firm Value. Advances in Economics, Business and Management Research. https://doi.org/https://doi.org/10.2991/iceb-15.2015.31
Pulic, A. (2004). Intellectual capital – does it create or destroy value? Measuring Business Excellence, 8(1), 62–68. https://doi.org/10.1108/13683040410524757
Putra, I. N. W. A., & Ratnadi, N. M. D. (2021). Intellectual Capital and Its Disclosure on Firm Value. International Journal of Finance & Banking Studies (2147-4486), 10(1), 86–95. https://doi.org/10.20525/ijfbs.v10i1.1108
Rahman, F. A., Ramadhan, S. D., & Saputra, D. (2024). The Effect of Female Directors, Board Size, Independent Commissioners and Quality of Earnings Ratio on the Integrated Reporting Quality with Political Connection as a Moderating Variable. Asia Proceedings of Social Science, 12(1). https://doi.org/https://doi.org/10.31580/631bre80
Ramadhan, S. D., Saputra, D., & Nawas, A. (2024). The Effect of Female Directors, Board Size, Independent Commissioners, and Political Connections on Tax Avoidance With Integrated Reporting Quality as a Mediating Variable: Case Study of Non-Cyclical Consumer Goods Sector Companies Listed on Idx 2019-2022. Asia Proceedings of Social Science, 12(1). https://doi.org/https://doi.org/10.31580/bej75y53
Rinsman, T. C. S., & Prasetyo, A. B. (2020). The Effects of Financial and Environmental Performances on Firm Value with Environmental Disclosure as an Intervening Variable. Jurnal Dinamika Akuntansi, 12(2), 90–99. https://doi.org/10.15294/jda.v12i2.24003
Saputra, D., & Arifin, Z. D. (2024). The Effect Of Green Accounting, Assets Turnover, Eco-Efficiency, And Financial Constraints On Firm Value. International Conference On Law And Social Sciences.
Saputra, W. S., Saputra, Y., Koswara, K., Wahyu Herawati, S., & Sae, L. A. S. A. (2023). The Effect of Enterprise Risk Management and Intellectual Capital Disclosure on Firm Value. Dinasti International Journal of Education Management and Social Science, 4(3). https://doi.org/10.31933/dijemss.v4i3
Septiani, E., Holiawati, & Ruhiyat, E. (2019). Environmental Performance, Intellectual Capital, Praktik Penghindaran Pajak dan Nilai Perusahaan. 21(1), 61–70. https://doi.org/https://doi.org/10.34208/jba.v21i1.426
Subaida, I., Nurkholis, & Endang, M. (2018). Effect of Intellectual Capital and Intellectual Capital Disclosure on Firm Value. JAM: Jurnal Aplikasi Manajemen, 16(1). https://doi.org/10.21776/ub.jam.2018.016
Tobin, J. (1969). A General Equilibrium Approach To Monetary Theory. Journal of Money, Credit and Banking, 1(1), 15–19.
Ulum, I. (2013). Model Pengukuran Kinerja Intellectual Capital Dengan Ib-Vaic Di Perbankan Syariah. INFERENSI, Jurnal Penelitian Sosial Keagamaan, 7(1), 185. https://inferensi.iainsalatiga.ac.id/index.php/inferensi/article/view/209
Vitolla, F., Raimo, N., & Rubino, M. (2019). Appreciations, Criticisms, Determinants, And Effects Of Integrated Reporting: A Systematic Literature Review. Corporate Social Responsibility and Environmental Management, 26(2), 518–528. https://doi.org/10.1002/csr.1734
Woolley, M. (1992). Using statistics for desk research. Aslib Proceedings, 44(5). https://doi.org/https://doi.org/10.1108/eb051276
Yadav, P. L., Han, S. H., & Rho, J. J. (2015). Impact of Environmental Performance on Firm Value for Sustainable Investment: Evidence from Large US Firms. Business Strategy and the Environment, 25(6), 402–420. https://doi.org/10.1002/bse.1883
Yu, M., & Zhao, R. (2015). Sustainability and firm valuation: An international investigation. International Journal of Accounting and Information Management, 23(3), 289–307. https://doi.org/10.1108/IJAIM-07-2014-0050
Published
2024-12-11
How to Cite
SINAGA, Ferdinand I.P; SAPUTRA, Dian.
Green Gains: The Role of Environmental Initiatives and Intellectual Capital in Enhancing Firm Value in Emerging Markets.
E-Jurnal Akuntansi, [S.l.], v. 34, n. 12, dec. 2024.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/120790>. Date accessed: 15 jan. 2025.
doi: https://doi.org/10.24843/EJA.2024.v34.i12.p06.
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