The Role of Sustainability Governance Moderates the Influence of Sustainability Impact Disclosure and Carbon Emissions Disclosure on Stock Returns
Abstract
This study aims to examine the effect of sustainability impact disclosure and carbon emission disclosure on stock returns, as well as analyze the role of sustainability governance in moderating the relationship between sustainability impact disclosure and carbon emission disclosure on stock returns. The novelty of this research lies in the development of measurement of carbon emission disclosure variables. This study uses a quantitative approach with secondary data obtained from 283 company observations during the 2023–2024 period. Samples were selected using purposive sampling methods, while data analysis was carried out through classical assumption tests, multiple linear regression, and expansion tests. The results show that carbon emission disclosure has a positive effect on stock returns, while sustainability impact disclosure has no significant effect on stock returns. In addition, sustainability governance has been shown to strengthen the influence of carbon emission disclosure on stock returns, but it is unable to strengthen the effect of sustainability impact disclosure on stock returns. The results of the sensitivity test showed that the new measurements resulted in a higher adjusted R-squared value and more supported hypotheses than the previous model
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