Environmental Performance and Green Investment Effects on Plantation Firm Value

Abstract

This research investigates environmental performance and green investment influences on firm value among plantation companies listed on the Indonesia Stock Exchange (2020–2023). Employing quantitative methodology with purposive sampling, 11 companies yielded 39 observations following outlier removal. Environmental performance was assessed through PROPER ratings, green investment via environmental cost ratios, and firm value using Tobin's Q. Multiple linear regression analysis via SPSS 26 revealed that environmental performance exhibits no significant effect on firm value, while green investment demonstrates a negative significant impact. Simultaneously, both variables explain 17.3% of firm value variation. Findings suggest that short-term green investment costs may suppress immediate valuations despite potential long-term sustainability benefits, with environmental performance not yet fully recognized in market assessments.