Green Gains: The Role of Environmental Initiatives and Intellectual Capital in Enhancing Firm Value in Emerging Markets

Abstract

This study explores how intellectual capital management and
environmental sustainability contribute to enhancing firm value in
competitive markets. It addresses a critical knowledge gap by
examining the interplay between sustainability, innovation, and firm
value in emerging markets, with integrated reporting considered as a
moderating variable. Through panel regression analysis of 252
observations within the consumer cyclicals sector from 2021 to 2023,
the findings reveal that environmental performance has a significant
and positive impact on firm value. In contrast, intellectual capital does
not exhibit a direct influence on firm value. Furthermore, integrated
reporting weakens the relationship between environmental
performance and firm value but does not moderate the link between
intellectual capital and firm value. These results provide practical
insights for firms seeking to refine their sustainability strategies in
competitive markets and contribute to the academic discourse on the
role of integrated reporting as a moderating factor in the nexus of
sustainability, innovation, and value creation.