Carbon Taxes and Disclosure: Drivers of Sustainable Financial Performance in Energy Firms Lin Oktris, Agustin Fadjarenie,Muhhamad Azhari Brian
Department of Accounting Faculty Economic and Business
Universitas Mecu Buana
Abstract
Background: Carbon emissions management has become a primary focus in fostering sustainable financial performance, particularly within the energy industry. Previous research has highlighted the significance of carbon taxes and carbon emission disclosure in influencing the financial performance of energy companies.
Research Objective: This study aims to investigate the impact of carbon taxes and carbon emission disclosure on the sustainable financial performance of energy companies, considering external and internal factors influencing this relationship.
Research Methodology: The study employs a quantitative approach utilizing panel data from energy companies. The dependent variable is sustainable financial performance, while the key independent variables are the carbon tax rate and carbon emission disclosure. Panel regression analysis is used to examine the relationship between these variables.
Findings: The analysis results indicate that carbon taxes and carbon emission disclosure significantly impact the financial performance of energy companies. There is a positive relationship between the carbon tax rate and financial performance, while carbon emission disclosure significantly enhances company financial performance.
Practical Implications: These findings provide impetus for energy companies to consider carbon tax strategies and enhance transparency in carbon emission disclosure as efforts to improve sustainable financial performance.
Novelty: This research contributes novel insights into understanding the relationship between carbon taxes, carbon emission disclosure, and the financial performance of energy companies, by integrating both internal and external factors into its analysis.
Keywords: Please Carbon tax, Carbon emission disclosure, Sustainable financial performance, Energy company, Panel regression analysis. Try to Submit This Sample Abstract
