DOES ENVIRONMENTAL CULTURE AND INTELLECTUAL CAPITAL ENHANCE FIRM VALUE AMID POLITICAL INFLUENCE?

Authors

  • Burhanuddin Universitas Islam Riau
  • Alfurkaniati Universitas Islam Riau
  • Dian Saputra Universitas Islam Riau
  • Zidan Dwinanda Arifin Universitas Islam Riau
  • Galih Agestri Pangestu Universitas Islam Riau

DOI:

https://doi.org/10.23969/jrak.v17i2.21807

Keywords:

environmental, organizational culture, intellectual capital, firm value, political connection

Abstract

Corporate sustainability has been a key concern for investors and stakeholders, particularly in the Consumer Non-Cyclical (CNC) sector. Previous studies suggested that Environmental Organizational Culture (EOC) and Intellectual Capital (IC) could enhance firm value, but their impact remained debated. This study examined the effect of EOC and IC on firm value, with Political Connections (PC) as a moderating variable. Using panel data regression analysis on financial and sustainability reports from 2021–2022, the findings revealed that EOC and IC had a significant negative relationship with firm value. Additionally, PC moderated the relationship between EOC and firm value but did not significantly affect the IC-firm value relationship. These results suggested that investments in sustainability and intellectual capital might burden firms in the short term, whereas political connections favored tangible operational investments. This study provided insights for stakeholders in balancing sustainability strategies, intellectual capital, and firm value.

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Published

2025-04-19