Abstract

This study investigates the impact of carbon emission disclosure, environmental performance (ISO 14001 certification), and institutional ownership on firm value in Indonesia’s energy and banking sectors during the 2021–2023 period. Using panel data regression on a sample of 93 firms, the findings reveal a significant yet negative relationship between carbon emission disclosure and firm value, suggesting that transparency in carbon reporting may be perceived as a financial burden by market participants. Conversely, environmental performance, as measured by ISO 14001 certification, and institutional ownership do not exhibit significant effects on firm value. These results indicate that while sustainability practices are gaining traction, their financial implications remain unclear in certain contexts. The study highlights the need for refined regulatory frameworks and stakeholder engagement to balance corporate sustainability initiatives with market expectations.