KnE Social Sciences

Published date: Sep 16 2025

Journal Title: KnE Social Sciences

Issue title: The Mercu Buana Ecobiz Energy International Conference: Sustainability and ESG Reporting in the Energy Sector

Pages: 1 - 14

DOI: 10.18502/kss.v10i21.19685

Lin Oktrislin.oktris@mercubuana.ac.idDepartment of Accounting, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta

Agustin FadjarenieDepartment of Accounting, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta

Muhhamad Azhari BrianDepartment of Accounting, Faculty of Economic and Business, Universitas Mercu Buana, Jakarta

Background: Carbon emissions management has become a primary focus in fostering sustainable financial performance, particularly within the energy industry. Previous research has highlighted the significance of carbon taxes and carbon emission disclosure in influencing the financial performance of energy companies. However, despite extensive studies, there remains a gap in understanding how internal and external factors interact in this relationship, which this research aims to address. Research Objective: This study aims to investigate the impact of carbon taxes and carbon emission disclosure on the sustainable financial performance of energy companies. Additionally, it considers external factors such as environmental policies and internal factors like corporate strategy and operational efficiency that may influence this relationship. Research Methodology: The study employs a quantitative approach, utilizing panel data from energy companies over several years. The dependent variable in this research is sustainable financial performance, while the primary independent variables are the carbon tax rate and carbon emission disclosure. Panel regression analysis is employed to examine the relationship between these variables, accounting for control variables such as company size and leverage levels. Novelty: This research offers novel insights by integrating both internal and external factors into the analysis of the impact of carbon taxes and carbon emission disclosure on the financial performance of energy companies. Consequently, it makes a significant contribution to the literature on environmental accounting and carbon tax policies. The findings are expected to provide important guidance for companies seeking to improve their sustainable financial performance amidst growing demands for environmental transparency

Keywords: carbon tax, carbon emission disclosure, sustainable financial performance, energy company, panel regression analysis

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