Beyond the Green Cosmetic: Evaluating the Non-Significance of Environmental Disclosure and Hedging Strategy on Market Valuation

Abstract

Purpose – This study aims to examine the effect of Environmental Disclosure and Hedging Policy on Firm Value in transportation, logistics, and energy sector companies listed on the Indonesia Stock Exchange during 2022–2024.

Design/methodology/approach – This study employs a quantitative approach using panel data regression analysis. The sample consists of 47 companies selected through purposive sampling from a population of 128 firms. Model selection was conducted using the Chow test, Hausman test, and Lagrange Multiplier test. The final estimation model used is the Random Effect Model (REM).

Findings – The results indicate that Environmental Disclosure has no significant effect on Firm Value. Similarly, Hedging Policy does not significantly influence Firm Value. These findings suggest that environmental transparency and risk management practices have not yet been fully valued by the Indonesian capital market during the observed period.

Research limitations/implications – This study is limited to secondary data obtained from annual reports and a relatively short observation period (2022–2024). Future research is recommended to extend the period and refine measurement proxies.

JEL : G32, G11, M41