Green Bonds, Digital Finance on Green Finance Performance: The Mediating Role of GCG

Ageng Widya Nur Rohmatillah; Rina Destiana

doi:10.58905/jse.v6i1.586

Authors

Ageng Widya Nur Rohmatillah Universitas Swadaya Gunung Jati, West Java, Indonesia
Rina Destiana Universitas Swadaya Gunung Jati, West Java, Indonesia

DOI:

https://doi.org/10.58905/jse.v6i1.586

Keywords:

Green bonds, Digital finance, Green Finance Performance, Good Corporate Governance

Abstract

This study aims to investigate the impact of green bonds, digital finance and good governance on green finance performance, with good governance also acting as a mediating variable. The study focuses on financial services institutions registered with the OJK in the period 2021-2023. A quantitative approach is used, employing multiple linear regression analysis and the Sobel test. The sample includes eight banks selected through purposive sampling due to the requirement to publish annual reports for the period 2021 to 2023. The results of this study suggests that green bond and Digital Finance have a significant positive impact on Green Financial Performance. In addition, good corporate governance successfully mediates the relationship between green bonds and green financial performance. However, the link between green financial performance and digital finance isn't affected by it.

Downloads

Download data is not yet available.

References

CNN. apa itu perjanjian iklim paris [Internet]. 2023. Available from: https://www.cnnindonesia.com/teknologi/20231205215437-641-1033356/apa-itu-perjanjian-iklim-paris

Anantharajah K, Setyowati AB. Beyond promises: Realities of climate finance justice and energy transitions in Asia and the Pacific. Energy Res Soc Sci. 2022 Jul 1;89.

Argyanti IR, Lubis I, Ekonomi F, Bisnis D, Pamulang U, Selatan T, et al. Analisis Implementasi Green Finance dalam Mendukung Pembangunan Berkelanjutan: Studi Kasus Pada PT Bank Mandiri (Persero) Tbk. Pros Semin Nas Manaj [Internet]. 2025;4(1):273–7. Available from: http://openjournal.unpam.ac.id/index.php/PSM/index

Bhopal NR, Devi R. Sustainable Development Using Green Finance and Triple Bottom Line: A Bibliometric Review. IMIB J Innov Manag. 2023;

DJBP KEMENKEU. Implementasi Green Finance [Internet]. Direktorat Jenderal Perbendaharaan (DJPb) Kementerian Keuangan RI. 2024. Available from: https://djpb.kemenkeu.go.id/kppn/watampone/id/profil/309-artikel/3656-implementasi-green-finance.html

Mandiri B. Melaju untuk Menuju Masa Depan, Bank Mandiri Menjadi Pionir Perdagangan Bursa Karbon [Internet]. 2023. Available from: https://www.bankmandiri.co.id/search?keywords=MELAJU UNTUK&searchCategory=0

Davey O, Ria Wierma Putri, Tristiyanto, Yunita Maya Putri, Febryani Sabatira. GREEN BONDS IN INDONESIA: SYNERGY BETWEEN BANK INDONESIA AND OTORITAS JASA KEUANGAN’S COMMITMENT. J Cent Bank Law Institutions. 2023 May 31;2(2):199–220.

Zhao F, Bai F, Liu X, Liu Z. A Review on Renewable Energy Transition under China’s Carbon Neutrality Target. Sustain. 2022;14(22).

Azhgaliyeva D, Kapoor A, Liu Y. Green bonds for financing renewable energy and energy efficiency in South-East Asia: a review of policies. J Sustain Financ Invest [Internet]. 2020;10(2):113–40. Available from: https://doi.org/10.1080/20430795.2019.1704160

Cendekiawan M, Firmansyah A. Pengembangan Green Bonds Di Indonesia: Upaya Pemerintah Untuk Mewujudkan Keuangan Berkelanjutan. J Law, Adm Soc Sci. 2024;4(1):87–100.

Li J, Zhang G, Ned JP, Sui L. How does digital finance affect green technology innovation in the polluting industry? Based on the serial two-mediator model of financing constraints and research and development (R&D) investments. Environ Sci Pollut Res. 2023;30(29):74141–52.

Destiana R. Finance Professionals Understanding of Digital Transformation Challenges and Opportunities in Financial Reporting. 2024;2(March):371–82.

Wahyudi A, Triansyah FA, Acheampong K. Green Finance and Sustainability: A Systematic Review. JURISMA J Ris Bisnis Manaj. 2023;13(2):133–44.

OECD Principles. G20/OECD Principles of Corporate Governance. G20/OECD Principles of Corporate Governance. 2016.

Li L, Msaad H, Sun H, Tan MX, Lu Y, Lau AKW. Green innovation and business sustainability: New evidence from energy intensive industry in China. Int J Environ Res Public Health. 2020;17(21):1–18.

Liu L. Green innovation, firm performance, and risk mitigation: evidence from the USA. Environ Dev Sustain [Internet]. 2024;26(9):24009–30. Available from: https://doi.org/10.1007/s10668-023-03632-z

Sila I, Cek K. The impact of environmental, social and governance dimensions of corporate social responsibility: Australian evidence. Procedia Comput Sci [Internet]. 2017;120:797–804. Available from: https://doi.org/10.1016/j.procs.2017.11.310

Khoirunnisa, & Karina A. Pengaruh GCG, CSR, dan Kredit Hijau Terhadap Kinerja Keuangan Bank. 2024;(4).

Iqbal S, Brawijaya U. THE MODERATING ROLE OF GOOD CORPORATE GOVERNANCE IN THE RELATIONSHIP BETWEEN GREEN INNOVATION, ENVIRONMENTAL DISCLOSURE AND FIRM VALUE. 2024;14(03):553–69.

Endiana IDM, DICRIYANI NLGM, ADIYADNYA MSP, PUTRA IPMJS. The Effect of Green Accounting on Corporate Sustainability and Financial Performance. J Asian Financ Econ Bus. 2020;7(12):731–8.

Fajri F. Influence Of Good Corporate Governance On Financial Sector Soe Companies Financial Performance. Risma. 2022;2(2):307–20.

Putri Fabiola V, Khusnah H. Pengaruh Green Innovation Dan Kinerja Keuangan Pada Competitive Advantage Dan Nilai Perusahaan Tahun 2015-2020. Media Mahard. 2022;20(2):295–303.

Roza Mulyadi, Maulana R. Pengaruh Green Innovation Terhadap Firm Value Dengan Environmental Management Accounting Sebagai Variabel Intervening. Account Manag J. 2022;6(2):1–12.

Keshav Mishra, Arjun Kannaujia. “Green Finance”: A Powerful Tool for Sustainability. Soc Sci J Adv Res. 2023;3(6):1–7.

Martin V. Green Finance: Regulation and Instruments1. J Cent Bank Theory Pract. 2023;12(2):185–209.

Luo Z. Research on the Development of Green Finance in Guiyang Bank. Stat Appl. 2024;13(04):1601–9.

Alamgir M, Cheng MC. Do Green Bonds Play a Role in Achieving Sustainability? Sustain. 2023;15(13).

Olawale Adisa, Bamidele Segun Ilugbusi, Ogugua Chimezie Obi, Kehinde Feranmi Awonuga, Onyeka Franca Asuzu. Green bonds in climate finance: A review of USA and African initiatives. Int J Sci Res Arch. 2024;11(1):2376–83.

Flammer C. Corporate green bonds. J financ econ [Internet]. 2021;142(2):499–516. Available from: https://doi.org/10.1016/j.jfineco.2021.01.010

Yadav S, Article O, Pradesh U, Pradesh U, Pradesh U, Pradesh U. GREEN BONDS AND SUSTAINABLE FINANCE : EMERGING TRENDS IN CORPORATE. 2024;5:591–9.

Tang DY, Zhang Y. Do shareholders benefit from green bonds? J Corp Financ [Internet]. 2020;61(December):1–18. Available from: https://doi.org/10.1016/j.jcorpfin.2018.12.001

Urekeshova A, Rakhmetulina Z, Dubina I, Barykin SE, Mottaeva AB, Niyazbekova SU. The Impact of Digital Finance on Clean Energy and Green Bonds through the Dynamics of Spillover. Int J Energy Econ Policy. 2023;13(2):441–52.

Wang W, Bian X. A Study on the Impact of Digital Finance on Green Technology Innovation. Smart Innov Syst Technol. 2023;358:171–80.

Han Y, Li Y, Wang Q. Digital finance, environmental regulation, and green development efficiency of China. Front Environ Sci. 2023;11(February).

Wang W. Digital finance and firm green innovation: The role of media and executives. Financ Res Lett [Internet]. 2025;74(January):106794. Available from: https://doi.org/10.1016/j.frl.2025.106794

He L, Zhou L, Qi J, Song Y, Jiang M. The Role of Digital Finance Embedded in Green Agricultural Development: Evidence from Agribusiness Enterprises in China. Land. 2024;13(10).

Jin X, Chen C, Li Y, Yu Y. Impact of Green Finance on Regional Green Innovation Performance. Sustain. 2024 Dec 1;16(23).

Siswanti I, Riyadh HA, Cahaya YF, Prowanta E, Beshr BAH. Unlocking sustainability: exploring the nexus of green banking, digital transformation, and financial performance with foreign ownership moderation. Discov Sustain. 2024;5(1).

Xie Z, Wu Y. Digital finance, financial regulation and transformation of R&D achievements. Heliyon [Internet]. 2024;10(9):e30224. Available from: https://doi.org/10.1016/j.heliyon.2024.e30224

Freeman R. Strategic Management: A stakeholder Approach”. 1984;

Beckman T, Khare A, Matear M. Does the theory of stakeholder identity and salience lead to corporate social responsibility? the case of environmental justice. Soc Responsib J. 2016;12(4):806–19.

Donaldson T, Preston LEEE. The Stakeholder Theory of the Corporation : Concepts , Evidence , and Implications Author ( s ): Thomas Donaldson and Lee E . Preston Source : The Academy of Management Review , Vol . 20 , No . 1 ( Jan ., 1995 ), pp . 65-91 Published by : Academy of Manag. Acad Manag Rev. 1995;20(1):65–91.

Tilt C. Influences on corporate social disclosure: a look at lobby groups ten years on. Sch Commer Res Pap Ser Flinders Univ [Internet]. 2001;(04):1–28. Available from: http://195.130.87.21:8080/dspace/handle/123456789/1174

Tauringana V, Chithambo L. The effect of DEFRA guidance on greenhouse gas disclosure. Br Account Rev [Internet]. 2015;47(4):425–44. Available from: http://dx.doi.org/10.1016/j.bar.2014.07.002

Andi Auliya Ramadhany. The Mediation Effect Firm Performance on Green Innovation and Firm Value: Evidence the Mining Industry. Turkish J Comput Math Educ. 2021;12(3):1377–783.

Agustia D, Sawarjuwono T, Dianawati W. The mediating effect of environmental management accounting on green innovation - Firm value relationship. Int J Energy Econ Policy. 2019;9(2):299–306.

Park SK. Debt Financing as a Sustainability Driver. Ssrn. 2020;596–610.

Kuchin I, Baranovsky G, Dranev Y, Chulok A. Does Green Bonds Placement Create Value For Firms? SSRN Electron J. 2019;

Sun G, Li T, Ai Y, Li Q. Dmoes Green Bond Promote Corporate ESG Performance? Evidence from China. 2019;

Tukhtabayev A, Dadajonova M, Sativaldiyeva G, Kholiyorov U, Hamidova S. Harnessing Green Bonds for Sustainable Development: An Empirical Impact and Insight. E3S Web Conf. 2024;574.

Lin R, Ma G, Cao J. Do Green Bonds Help to Improve Enterprises’ Financing Efficiency? Empirical Evidence Based on Chinese A-Share Listed Enterprises. Sustainability. 2024;16(17):7472.

Heydari H, Taleizadeh AA, Jolai F. Financing a two-stage sustainable supply chain using green bonds: Preventing environmental pollution and waste generation. Eng Appl Artif Intell [Internet]. 2023;117(September 2022):105583. Available from: https://doi.org/10.1016/j.engappai.2022.105583

Gomber P, Kauffman RJ, Parker C, Weber BW. On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services. J Manag Inf Syst. 2018;35(1):220–65.

Udeagha MC, Ngepah N. The drivers of environmental sustainability in BRICS economies: Do green finance and fintech matter? World Dev Sustain [Internet]. 2023;3(December 2022):100096. Available from: https://doi.org/10.1016/j.wds.2023.100096

Nenavath S, Mishra S. Impact of green finance and fintech on sustainable economic growth: Empirical evidence from India. Heliyon [Internet]. 2023;9(5):e16301. Available from: https://doi.org/10.1016/j.heliyon.2023.e16301

Zhang Y. Role of green finance, green bonds, public private partnership, and technology innovation in carbon neutrality and sustainable development. Heliyon [Internet]. 2024;10(18):e37189. Available from: https://doi.org/10.1016/j.heliyon.2024.e37189

Abdi Y, Li X, Càmara-Turull X. Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age. Environ Dev Sustain [Internet]. 2022;24(4):5052–79. Available from: https://doi.org/10.1007/s10668-021-01649-w

Indriastuti M, Kartika I. Improving Firm Value through Intellectual Capital, Good Corporate Governance and Financial Performance. J Ilm Akunt. 2021;6(1):85.

Sugiyono. Metode Penelitian Pendidikan (Quantitative, Kualitatif, dan Kombinasi). Bandung Alf. 2019;

Riyadh HA, Al-Shmam MA, Huang HH, Gunawan B, Alfaiza SA. The analysis of green accounting cost impact on corporations financial performance. Int J Energy Econ Policy. 2020;10(6):421–6.

Ehlers T, Packer F. Green bond finance and certification. BIS Q Rev. 2017;(September):89–104.

Salvi A, Vitolla F, Rubino M, Giakoumelou A, Raimo N. Online information on digitalisation processes and its impact on firm value. J Bus Res [Internet]. 2021;124(June 2020):437–44. Available from: https://doi.org/10.1016/j.jbusres.2020.10.025

Hair JF, Black WC, Babin BJ, Anderson RE. Multivariate Data Analysis. 8th ed. Annabel Ainscow; 2019.

Field A. Discovering Statistics Using IBM SPSS Statistics. Third. London: Sage Publication; 2009.

Tabachnick BG, Fidell LS. Pearson New International Edition: Using Multivariate Statistics. Sixth. London: Pearson Education Limited; 2014.

Wahyuni MFAN, Saraswati E, Prastiwi A. Digital Technology and CSR Disclosure on Firm Value Moderated by Financial Flexibility and Firm Size. J Keuang dan Perbank. 2023;27(3):339–47.

Ningsi EH, Manurung L, Rizki MN. Integrasi Green Finance Terhadap Nilai Perusahaan : Perspektif Sektor Perbankan Di Indonesia. J Ekon Bisnis Manaj Prima. 2024;5(2):1–10.

Ummah MS. No 主観的健康感を中心とした在宅高齢者における健康関連指標に関する共分散構造分析Title. Sustain [Internet]. 2019;11(1):1–14. Available from: http://scioteca.caf.com/bitstream/handle/123456789/1091/RED2017-Eng-8ene.pdf?sequence=12&isAllowed=y%0Ahttp://dx.doi.org/10.1016/j.regsciurbeco.2008.06.005%0Ahttps://www.researchgate.net/publication/305320484_SISTEM_PEMBETUNGAN_TERPUSAT_STRATEGI_MELESTARI

Handayani S, Nyoman Alit Triani N, Mohd Ali M. How Do Profitability and ISO 14001 Certification Impact Sustainability Reporting? AKRUAL J Akunt. 2024;15(2):2085–9643.

Ruhiyat E, Rahman Hakim D, Handy I. Does Stakeholder Pressure Determine Sustainability Reporting Disclosure? : Evidence From High-Level Governance Companies. J Reviu Akunt dan Keuang. 2022;12(2):416–37.

Pamungkas C, Edy Susena. Classification Analysis Of Regional Characteristics Using Convolutional Neural Network On Satellite Image. J AKSI (Akuntansi dan Sist Informasi). 2022;7(1):62–6.

Mariska Purwaamijaya B, Prasetyo Y. The Effect of Artificial Intelligence (AI) on Human Capital Management in Indonesia. J Manaj dan Kewirausahaan. 2022;10(2):168–74.