The Influence of Green Announcement on Energy Sector Stock Return on the Indonesia Stock Exchange with Media Coverage as a Moderating Variable

Asyarif, Muhammad Azkha (2025) The Influence of Green Announcement on Energy Sector Stock Return on the Indonesia Stock Exchange with Media Coverage as a Moderating Variable. Other thesis, Institut Teknologi Sepuluh Nopember.

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Abstract

Climate change poses increasing risks to ecosystems, economies, and human well-being, prompting a global push for sustainable business practices. In response, many companies, especially in high emission industries like the energy sector, have communicated their environmental efforts, through green announcements and other sustainability actions, to signal environmental responsibility and attract investors. This study investigates the impact of green announcements on stock returns of energy sector companies listed on the Indonesia Stock Exchange (IDX), with media coverage, specifically media visibility and media favorability, as potential moderating variables. Utilizing an event study methodology and moderated regression analysis, the research examines 58 green announcements made by 27 companies between 2021 and 2024. The findings reveal that green announcements do not generate statistically significant abnormal returns. Moreover, neither media visibility nor media favorability significantly moderates the relationship between green announcements and stock performance. These findings suggest that green announcements in Indonesia may lack market credibility and investor relevance, potentially due to weak ESG norms, limited standardization in sustainability reporting, and low investor familiarity. The study emphasizes the importance of improving the credibility and clarity of green communication strategies to strengthen investor confidence and better align financial incentives with long term environmental goals.

Item Type:	Thesis (Other)
Uncontrolled Keywords:	Energy sector, event study, green announcement, media coverage, stock return
Subjects:	H Social Sciences > HG Finance > HG4915 Stocks--Prices
Divisions:	Faculty of Creative Design and Digital Business (CREABIZ) > Business Management > 61205-(S1) Undergraduate Thesis
Depositing User:	Muhammad Azkha Asyarif
Date Deposited:	22 Jul 2025 06:32
Last Modified:	22 Jul 2025 06:32
URI:	http://repository.its.ac.id/id/eprint/120482

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