Effect of Top Management Team Characteristics and Green Innovation on Firm Performance in Indonesia: Role of Carbon Emission Disclosure


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Authors

  • Bambang Tjahjadi Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia,
  • Noorlailie Soewarno Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia,
  • Khairul Anuar Kamarudin Faculty of Business, University of Wollongong in Dubai, Dubai, UAE.
  • Sazkiya Aldina Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia,
  • Tsanya El Karima Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia,
  • Annisa Ayu Putri Sutarsa Faculty of Economics and Business Universitas Airlangga, Surabaya, Indonesia

DOI:

https://doi.org/10.32479/ijeep.14222

Keywords:

TMT Characteristics, Green Innovation, Carbon Emission Disclosure, Firm Performance, Economic Growth and Productivity

Abstract

The purpose of this study is to investigate whether top management team (TMT) characteristics and green innovation (GI) affect firm performance, and if so, whether the effect is mediated by carbon emission disclosure (CED). This quantitative study employs the partial least square structural equation modeling (PLS-SEM) to test the hypotheses. The data were collected from the high-profile companies listed in the Indonesia Stock Exchange (IDX) for the 2015 - 2019 period.  A mediating research framework was developed to explain the association among constructs.  Using agency theory and sustainability theory (triple bottom line), the results show the following findings. First, TMT characteristics positively affect firm performance. Second, GI positively affects on firm performance. Third, CED partially mediates the effect of TMT characteristics on firm performance. Fourth, CED partially mediates the effect of GI on firm performance. The current study addresses the existing research gaps and debates in the previous studies in term of proposing a more comprehensive framework by adding CED as a mediating variable. This study also builds a new dataset and focuses on environmental issues in the Indonesian research setting as an emerging country and a two-tier governance system adopter.

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Author Biographies

Bambang Tjahjadi, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia,

Bambang Tjahjadi is a professor of accounting at Faculty of Economics and Business Universitas Airlangga, Surabaya, Indonesia. He has been teaching accounting for more than 30 years. His research interest including management accounting, strategic management, and performance management. Bambang is a member of professional organization such as Certified Professional Marketers and Certified Management Accountant.

Noorlailie Soewarno, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia,

Noorlailie Soewarno is a Doctor of accounting at Faculty of Economics and Business Universitas Airlangga, Surabaya, Indonesia. She has been teaching accounting for more than 20 years. Her research interest including management accounting, strategic management, and performance management.

Khairul Anuar Kamarudin, Faculty of Business, University of Wollongong in Dubai, Dubai, UAE.

Dr Khairul Kamarudin is an Associate Professor at the University of Wollongong in Dubai (UOWD).Prior to joining UOWD, Dr Kamarudin was the undergraduate Head of Programme and Research Coordinator at MARA University of Technology, Malaysia. Dr Khairul’s research interest areas are auditing, corporate governance, competition and accounting quality. He has received numerous international research grants to investigate issues relating auditing, market-based accounting research, corporate governance and financial reporting.

Sazkiya Aldina, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia,

Sazkiya Aldina is an assistant of accounting of Professor Bambang Tjahjadi. Her research interest including management accounting.

Tsanya El Karima, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia,

Tsanya El Karima is an assistant of accounting of Professor Bambang Tjahjadi. Her research interest including management accounting.

Annisa Ayu Putri Sutarsa, Faculty of Economics and Business Universitas Airlangga, Surabaya, Indonesia

Annisa Ayu Putri Sutarsa is an assistant of accounting of Professor Bambang Tjahjadi. Her research interest including management accounting.

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Published

2023-09-16

How to Cite

Tjahjadi, B., Soewarno, N., Kamarudin, K. A., Aldina, S., Karima, T. E., & Sutarsa, A. A. P. (2023). Effect of Top Management Team Characteristics and Green Innovation on Firm Performance in Indonesia: Role of Carbon Emission Disclosure. International Journal of Energy Economics and Policy, 13(5), 44–53. https://doi.org/10.32479/ijeep.14222

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Articles