Environmental Investment and Good Corporate Governance as Determinants of Sustainable Company Value

Mediaty Mediaty (), Darwis Said, Anis Anshari Mas’ud and Nurhalija
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Mediaty Mediaty: Universitas Hasanuddin
Darwis Said: Universitas Hasanuddin
Anis Anshari Mas’ud: Universitas Hasanuddin
Nurhalija: Universitas Sulawesi Barat

A chapter in Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), 2026, pp 1309-1319 from Springer

Abstract: Abstract The purpose of this study is to investigate how environmental investment and good corporate governance (GCG) affect sustainable company value where company size as control variable. This research uses the secondary data on 30 manufacturing companies that listed in the Indonesian Stock Exchange for the periods of 2020 to 2023. Classical assumptions were checked prior to using the multiple regression model. The result is evidential that the investment on the environment does not affect a lot significantly for sustainable corporate value, which are informing that the Indonesian capital market was not totally recognize to allocate funds budget for environment as a long-term strategy to form creation value. Instead the effect of good corporate governance on increasing the sustainable corporate value becomes positive due to a kind of investors firm’s attention on transparency, accountability, and internal control system. Company size (as reflected by size) also failed to exert influence or to moderate the relationship of 2 independent variables with company value. Since the results are robust these implications suggest that it’s easier to our assumption that the environmental decent corporate governance is an issue of perception in the market and this investment must be communicated as a strategic tool, not only for burden. The findings of this study guide the management to invest the resources efficiently and are useful for regulators in fostering the behaviour of ESG that is consistent with investor expectation in Indonesian capital market.

Keywords: Environmental Investment; Good Corporate Governance; Company Size; Sustainable Corporate Values; Indonesian capital market (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-709-5_90

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