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Abstract
Sustainability reporting has become increasingly important in corporate governance, yet its value relevance remains uncertain in emerging-market settings where disclosure quality and institutional assurance are uneven. This study examines the effects of carbon emission disclosure, debt financing, and firm size on firm value in Indonesia’s energy and mining sector. It focuses on whether market valuation in a sustainability-sensitive industry is shaped by external disclosure, financing structure, or the organizational capacity that supports credible governance and reporting. Using a quantitative explanatory design, the study analyzes panel data from 70 firm-year observations spanning 2018 to 2024. The results show that firm size has a positive and significant effect on firm value, whereas carbon emission disclosure and debt financing do not. These findings indicate that, in this context, disclosure alone is insufficient to generate market value unless stronger internal capabilities and higher governance quality support it. The study contributes to the development of carbon emission disclosure research in Indonesia by showing that the market responds less to disclosure volume than to the organizational conditions that make disclosure credible. The findings also offer broader insight for sustainability accounting in Asian markets, where reporting reform is advancing faster than assurance and enforcement capacity.
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Article Type: Research Article
EUR J SUSTAIN DEV RES, Volume 10, Issue 3, 2026, Article No: em0410
https://doi.org/10.29333/ejosdr/18716
Publication date: 01 Jul 2026
Online publication date: 04 Jun 2026
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