Company Value in the Energy Sector: The Influence of Carbon Emission Disclosure, Eco-Efficiency, and Environmental Performance

Abstract

Growing awareness of environmental issues has encouraged companies to adopt more sustainable business practices. However, company value within the energy sector is fluctuating and does not always correspond with the increase in environmental performance. This research is structured to analyze how company value is shaped by carbon emission disclosure, eco-efficiency and environmental performance focusing on energy sector firms registered on the Indonesia Stock Exchange during the 2021-2024 period. By applying a purposive sampling method, data were gathered from annual and sustainability reports, resulting in 68 observations. Hypothesis testing was executed through multiple linear regression models via SPSS software. The final outputs indicate that company value is not significantly influenced by carbon emission disclosure, eco-efficiency, and environmental performance, whether tested partially or simultaneously. These outcomes suggest that investors’ primary focus when evaluating businesses in emerging markets has not yet prioritized environmental aspects, remaining instead dominated by financial factors. This study offers evidence that environmental elements have a fairly restricted impact on company valuation within developing economies.