Do Carbon Emissions And Dividend Policy Affect Stock Performance? Insight From Indonesia’s Energy Firm

Abstract

The purpose of this study is to determine how carbon emissions measured by Carbon Emissions Intensity (CEI) and dividend policy measured by Dividend Payout Ratio (DPR) affect the stock returns of energy companies listed on the Indonesia Stock Exchange (IDX) for the period 2020-2023. This study uses a quantitative and verificative research method with a causal research design. Eight companies that met the criteria were selected after conducting sample collection techniques using purposive sampling with a total of 32 analysis units. A panel data regression model was also used to test the hypotheses in this study. Based on the results of the panel data regression analysis using the Common Effect Model as the selected model, it was found that carbon emissions (CEI) did not affect stock returns, while dividend policy (DPR) had a positive effect on stock returns. Therefore, the results of this study are expected to be taken into consideration by energy sector companies in Indonesia to make the right decisions in optimizing company performance, particularly in relation to carbon emissions, dividend policy, and stock returns.