Abstract:
This study investigates the influence of carbon performance and financial indicators which
consist of liquidity, profitability, financial leverage, and activity ratio, towards firm value,
while also exploring the moderating role of board gender diversity (BGD) in the
infrastructure and energy sectors. Amidst the increased regulatory and stakeholder pressure
for sustainability and transparent disclosure, this research addresses the inconsistencies in the
previous studies about the relationship between carbon performance, financial indicators, and
firm value. Through using the quantitative approach, this study analyses secondary data from
annual reports, sustainability disclosures, and the Indonesia Stock Exchange (IDX) for the
period of 2020-2024, which comprised 29 companies and 145 observations. The firm value
is measured by using Tobin’s Q. Additionally, multiple regression analysis of the panel data
is conducted using EViews 12. The findings of the study reveal that carbon performance,
liquidity, profitability, and leverage significantly and positively influence the firm value.
Meanwhile, the activity ratio does not show any significant influence. Also, BGD only can
weaken the relationship between financial leverage and firm value. This study provides
strong empirical evidence about how carbon performance and financial indicators shape the
firm value and contributes to the literature about sustainability and governance in the
developing countries. This study offers strategic insights for firms in the capital-intensive
and highly regulated industries so they can align with the sustainable growth objectives.
