Carbon Economic Development and Corporate Value Creation: Educational Perspective on Market Evolution in Southeast Asia

Tohap Parulian; Muhammad Yamin Siregar; Azam Abdelhakeem Khalid Ahmed; Annisa Ilmi Faried

doi:10.46245/ijorer.v6i4.910

Tohap Parulian Universitas Medan Area, Indonesia
Muhammad Yamin Siregar Universitas Medan Area, Indonesia
Azam Abdelhakeem Khalid Ahmed University Drive, Malaysia
Annisa Ilmi Faried Universitas Pembangunan Panca Budi, Indonesia

DOI: https://doi.org/10.46245/ijorer.v6i4.910

Keywords: Carbon Economic, Corporate Value Creation, Educational Development, Southeast Asia Markets, Sustainable Finance

Abstract

Objective: This study investigates the relationship between carbon economic development and corporate value creation through an educational lens, examining how market evolution in Southeast Asia influences organizational learning and financial performance. The research aims to understand how companies adapt their carbon management strategies and the subsequent impact on profitability, leverage, and overall corporate valuation across different market maturity levels. Method: A comparative quantitative analysis was conducted using panel data from 240 publicly listed companies across Indonesia and Thailand during 2019-2024. The study employed multiple regression analysis with fixed effects models to examine the relationships between carbon trading participation, company size, profitability metrics (ROA, ROE), leverage ratios, and market capitalization. Educational development variables were measured through corporate sustainability reporting quality, green finance literacy indicators, and carbon management capability indices. Results: Findings reveal significant positive correlations between carbon economic participation and corporate value creation, with Indonesian firms showing 12.3% higher ROA compared to non-participating companies, while Thai counterparts demonstrated 15.7% improvement. Company size moderates this relationship, with larger firms exhibiting superior carbon economic adaptation capabilities. Leverage ratios decreased by an average of 8.2% among carbon-active companies, indicating improved financial stability through sustainable practices. Novelty: This research contributes the first comprehensive educational framework for carbon economic development in Southeast Asian markets, introducing the concept of "carbon learning curves" and providing empirical evidence of differential market evolution patterns across emerging economies in the region.

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