WHEN SUSTAINABILITY MISLEADS: GREENWASHING, CORPORATE BEHAVIOR, AND MARKET PERFORMANCE
DOI:
https://doi.org/10.61990/ijamesc.v4i3.807Keywords:
ESG Disclosure, Operational Efficiency, Greenwashing, Tax Aggressiveness, Market PerformanceAbstract
This study examines the effect of environmental disclosure, social disclosure, governance disclosure, operational efficiency, and greenwashing on market performance, as well as the moderating role of tax aggressiveness in mining companies listed on the Indonesia Stock Exchange during 2020–2024. The study is motivated by increasing sustainability pressure and growing investor concerns regarding the credibility of ESG disclosure and greenwashing practices in environmentally sensitive industries. The sample consists of 90 firm-year observations obtained from 18 mining companies selected using purposive sampling. Panel data regression and Moderated Regression Analysis (MRA) with the Random Effect Model (REM) were employed to test the proposed hypotheses. The results indicate that environmental disclosure and operational efficiency positively affect market performance, while social disclosure and greenwashing negatively affect market performance. Governance disclosure does not significantly influence market performance. Furthermore, tax aggressiveness strengthens the negative effect of social disclosure and weakens the positive effect of operational efficiency on market performance. In contrast, tax aggressiveness strengthens the influence of governance disclosure on market performance but does not moderate the relationship between environmental disclosure, greenwashing, and market performance. These findings suggest that investors increasingly evaluate the consistency between sustainability disclosure, operational behavior, and corporate financial practices when assessing firm value and long-term sustainability credibility.
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