Emission Performance, Environmental Disclosure, and Firm Value: Evidence from Southeast Asia

This study investigates the relationship between emission performance, environmental disclosure, and firm value in Southeast Asia, where climate-related risks are increasingly shaping corporate strategies and investor decisions. Using a sample of 206 listed firms from Indonesia, Malaysia, Singapore, and Thailand over 2022–2023, the analysis applies a 12-item environmental disclosure index and emission scores from Refinitiv LSEG, with firm value measured by the price-to-book ratio. Structural Equation Modeling (SEM) is employed to test causal pathways, complemented by ANOVA to explore cross-country and cross-industry differences. The results show that emission performance significantly enhances environmental disclosure, consistent with signaling theory and the resource-based view, where superior performance motivates firms to communicate credibility and differentiate themselves. However, environmental disclosure does not exert a significant direct effect on firm value, highlighting a disclosure–value gap in emerging markets where reporting remains heterogeneous and less valued by investors. Country-level differences suggest stronger performance in Indonesia, Singapore, and Thailand compared to Malaysia, while industry-level analysis shows that health care, energy, and financial firms lead in both emission management and disclosure. The findings provide implications for regulators, firms, and investors by underscoring the need for stronger ESG reporting frameworks and more credible disclosure practices to strengthen value relevance.