Moderating Role of Good Corporate Governance in the Effects of Green Finance, Leverage, and Profitability on Firm Value

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides empirical evidence on the moderating role of governance in the green finance–firm value relationship, useful for corporate finance and sustainability scholars.

🏢実務担当者:Offers insights for corporate sustainability teams in emerging markets on how governance structures influence green finance outcomes.

🏛政策担当者:Suggests that governance mechanisms can moderate the impact of green finance, which may inform regulatory design.

This study analyzes the influence of green finance, leverage, and profitability on firm value, with Good Corporate Governance (GCG) as a moderating variable, in energy companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2024. Using a quantitative explanatory approach, the study employs secondary data from annual and sustainability reports, with purposive sampling resulting in 11 firms and 72 firm-year observations. Panel data regression using Fixed Effect Model (FEM) and Moderated Regression Analysis (MRA) was applied, measuring firm value by Price-to-Book Value (PBV), green finance by Green Finance Disclosure Index (GFDI), leverage by Debt-to-Asset Ratio (DAR), profitability by Net Profit Margin (NPM), and GCG by institutional ownership. The results indicate that green finance positively and significantly affects firm value, while leverage has a negative and significant effect. Profitability shows no significant influence. Moreover, GCG moderates the relationships between green finance and firm value and between leverage and firm value by reducing their effects, but it does not moderate profitability. These findings highlight the importance of governance in improving firm value.

• semanticscholar https://doi.org/10.55927/ajabm.v5i1.16first seen 2026-05-06 00:45:01