GREEN DISCLOSURE AND INNOVATION TO CORPORATE LOAN: CASE OF LQ45 INDEX COMPANIES

• Main Author: Pendyala, Srinivas
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/81804
• Institution: Institut Teknologi Bandung

The study explores the impact of environmental disclosure and green innovation on corporate access to bank loans within the context of Indonesia, a nation committed to significant reductions in greenhouse gas emissions as part of the Paris Agreement. Despite the global emphasis on sustainable finance, there remains a gap in the literature concerning Indonesia's specific circumstances. This research addresses this gap by investigating two primary questions: how do green disclosure practices and green innovation affect a company's ability to secure loans from banks? Utilizing a quantitative research approach, panel data from 45 companies listed on the LQ45 index between 2018 and 2022 were analyzed using linear regression models. The findings reveal a positive correlation between both green disclosure and green innovation with corporate access to bank loans. This indicates that companies with better environmental practices and innovations not only comply with regulatory requirements but also enhance their financial performance by improving their loan acquisition processes. These results have significant implications for policymakers, financial institutions, and corporations, suggesting that stronger emphasis on sustainable practices can lead to improved financial outcomes and support Indonesia’s broader environmental goals.