The Impact of Sustainability Assurance, Carbon Emission Disclosure, and Green Investment on Market Reaction: The Mediating Role of Financial Performance
DOI:
https://doi.org/10.32493/JABI.v9i2.y2026.p216-243Keywords:
Sustainability Assurance, Carbon Emission Disclosure, Green Investment, Market Reaction, Financial PerformanceAbstract
This study aims to analyze the impact of sustainability assurance, carbon emission disclosure, green investment, and financial performance on market reaction, with financial performance as a mediating variable. Using a quantitative approach with panel data regression methods, this research utilizes secondary data from annual reports and sustainability reports of energy sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2021–2023. The research sample consists of 46 companies with a total of 138 observation data selected thru purposive sampling technique. The research results show that carbon emission disclosure, green investment, and financial performance partially have a significant positive effect on market reaction, while sustainability assurance does not significantly affect market reaction. The research results also prove that sustainability assurance and carbon emission disclosure significantly positively affect financial performance, while green investment does not significantly affect financial performance. Mediation test results in statistical analysis, proven that financial performance acts as a partial mediation in the influence of carbon emission disclosure on market reaction. However mediation in the influence of sustainability assurance on market reaction, does not mediate the influence of green investment on market reaction. These findings that the confirm that the credibility of sustainability disclosures and solid financial conditions are important factors in shaping investor perceptions, while green investments are viewed as a positive signal that the market accepts directly without the mediation of financial performance.
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