Authors : Lisandri; Shaiful Anuar Syahdan; Gemi Ruwanti

Volume/Issue : Volume 10 - 2025, Issue 12 - December

Google Scholar : https://tinyurl.com/4euta8tt

Scribd : https://tinyurl.com/25s28zhv

DOI : https://doi.org/10.38124/ijisrt/25dec412

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Note : Google Scholar may take 30 to 40 days to display the article.

Abstract : This study aims to examine the influence of green investment (GI) and good corporate governance (GCG) on sustainable value creation (SVC) among companies listed in Indonesia’s SRI-KEHATI Index during the 2020–2024 period. Using a quantitative approach through panel data regression and the Fixed-Effect Model (FEM), this research explores how environmental investment and governance practices collectively contribute to the creation of long-term market value. The empirical results show that GI has a positive and statistically significant effect on SVC, indicating that green-oriented investment is perceived by the market as a credible signal of efficiency, innovation, and long-term resilience. Meanwhile, GCG demonstrates a positive but relatively less significant influence, implying that good governance enhances corporate credibility and investor trust, although its impact is relatively weaker than that of GI. When tested simultaneously, the combination of GI and GCG provides a positive and significant effect on SVC, which indicates that companies integrating environmental investment with superior governance are more capable of generating sustainable value in a sustainability- oriented market. These findings affirm that SVC is not merely a financial outcome but the result of strategic alignment between sustainability commitments and institutional accountability, consistent with ESG.

Keywords : Green Investment; Good Corporate Governance; Sustainable Value Creation; Tobin’s Q; SRI-KEHATI Index.

References :

1. Aguilera, R. V., Judge, W. Q., & Terjesen, S. (2021). Corporate governance deviance: Beyond agency theory. Academy of Management Review, 46(4), 811–834. https://doi.org/10.5465/amr.2019.0049
2. Ahmad, S. (2021). Green investment and firm performance: Evidence from emerging markets. Journal of Sustainable Finance & Investment, 11(3), 215–233. https://doi.org/10.1080/20430795.2019.1699000
3. Al-Hadi, A. (2020). Corporate governance and firm value: The moderating role of board independence. International Journal of Corporate Governance, 7(2), 89–107. https://doi.org/10.1504/IJCG.2020.108875
4. Baltagi, B. H. (2021). Econometric analysis of panel data (6th ed.). Springer Nature.
5. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
6. Byron, K., & Post, C. (2016). Women on boards of directors and corporate social performance: A meta-analysis. Corporate Governance: An International Review, 24(4), 428–442. https://doi.org/10.1111/corg.12165
7. Chang, N. (2005). Environmental management and green investment strategies. Environmental Economics and Policy Studies, 7(4), 345–367. https://doi.org/10.1007/s10018-005-0241-5
8. Chung, K. H., & Pruitt, S. W. (1994). A simple approximation of Tobin’s Q. Financial Management, 23(3), 70–74. https://doi.org/10.2307/3665623

9. Claessens, S., & Yurtoglu, B. (2013). Corporate governance in emerging markets: A survey. Emerging Markets Review, 15, 1–33. https://doi.org/10.1016/j.ememar.2012.03.002
10. Clark, G. L., Feiner, A., & Viehs, M. (2015). From the stockholder to the stakeholder: How sustainability can drive financial outperformance. University of Oxford, Arabesque Partners.
11. Committee on Publication Ethics (COPE). (2022). Guidelines on good publication practice. COPE Council. https://publicationethics.org
12. Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). SAGE Publications.
13. Delmas, M. A., & Burbano, V. C. (2011). The drivers of greenwashing. California Management Review, 54(1), 64–87. https://doi.org/10.1525/cmr.2011.54.1.64
14. Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835–2857. https://doi.org/10.1287/mnsc.2014.1984
15. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman Publishing.
16. Hart, S. L., & Milstein, M. B. (2003). Creating sustainable value. Academy of Management Executive, 17(2), 56–69. https://doi.org/10.5465/ame.2003.10025194
17. Huang, C., & Li, M. (2022). Environmental innovation, firm value, and governance quality: Evidence from Asian markets. Asia-Pacific Journal of Management, 39(3), 801–825. https://doi.org/10.1007/s10490-021-09758-2
18. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
19. Kehati Foundation. (2024). Indeks SRI-KEHATI: Sustainable and responsible investment. Yayasan Keanekaragaman Hayati Indonesia. https://kehati.or.id/indeks-sri-kehati/
20. Khan, F. (2022). Environmental investment and market valuation: Evidence from Asian emerging economies. Environmental Economics & Policy Studies, 24(4), 765–789. https://doi.org/10.1007/s10018-021-00323-7
21. Kementerian Lingkungan Hidup dan Kehutanan (KLHK). (2024). Laporan kinerja PROPER: Penilaian peringkat kinerja perusahaan dalam pengelolaan lingkungan hidup. Jakarta: KLHK.
22. Murwaningsari, E., & Riyanti, B. P. D. (2023). Corporate governance, environmental performance, and carbon emission disclosure: Evidence from Indonesia. Jurnal Akuntansi dan Keuangan Indonesia, 20(1), 1–17. https://doi.org/10.21002/jaki.v20i1.1413
23. Nguyen, P. (2023). Corporate governance mechanisms and firm valuation: Empirical evidence from ASEAN markets. Journal of Asian Business and Economic Studies, 30(2), 122–138. https://doi.org/10.1108/JABES-05-2022-0047
24. OECD. (2023). Corporate governance and sustainability in emerging markets: Trends and policy challenges. OECD Publishing. https://doi.org/10.1787/9789264305548-en
25. Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1–2), 62–77.
26. Porter, M. E., & Van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97–118. https://doi.org/10.1257/jep.9.4.97
27. Pratiwi, R., & Nugroho, A. (2023). Corporate governance and sustainability reporting compliance: Evidence from Indonesia. Asian Journal of Business and Accounting, 16(1), 1–23. https://doi.org/10.22452/ajba.vol16no1.1
28. Sari, D. P., & Wulandari, S. (2021). Environmental performance, firm size, and corporate value: Evidence from Indonesian listed firms. Jurnal Ekonomi dan Keuangan, 25(2), 156–168. https://doi.org/10.24034/jek.2021.v25i2.1834
29. Wahyu Fikri, A., & Umaimah, S. (2025). Green investment and ESG-driven corporate transformation in Southeast Asia. International Journal of Sustainable Business Studies, 19(1), 45–62.
30. Widarwati, R., Tanuwijaya, E., & Prakoso, A. (2024). Environmental, social, and governance disclosure and firm value: The moderating role of green innovation. International Journal of Accounting Research, 28(3), 145–163. https://doi.org/10.1016/j.ijar.2024.02.006