The Impact of Greenwashing on Firm Value: The Moderating Role of Independent Commissioners
DOI:
https://doi.org/10.24036/wra.v14.i1.13Keywords:
Greenwashing, firm value, independent commissioners, ESG disclosure and Tobin’s Q.Abstract
Purpose – This study aims to examine the effect of greenwashing on firm value in companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2024. In addition, this study investigates the role of independent commissioners in moderating the relationship between greenwashing and firm value.
Design/methodology/approach – This research employs secondary data obtained from IDX-listed companies during 2021–2024, resulting in 207 observations selected through purposive sampling. Greenwashing is measured as the gap between ESG disclosure scores and ESG performance scores, while firm value is proxied by Tobin’s Q. The data are analyzed using panel data regression.
Findings – The results indicate that greenwashing has a positive effect on firm value, suggesting that symbolic ESG disclosures remain effective in shaping investor perceptions. However, independent commissioners are not found to moderate the relationship between greenwashing and firm value.
Originality/value – This study contributes to the literature by providing empirical evidence on the effect of greenwashing in an emerging market context, particularly Indonesia, and by examining the role of corporate governance mechanisms through independent commissioners.
Research limitations/implications – The study is subject to several limitations, including limited availability of ESG data in Indonesia, a relatively short observation period, and the use of a single governance variable, which may not fully capture the overall role of corporate governance.
Article Type: Research paper
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