Corporate Governance as a Moderator in the Relationship between Climate Finance, Carbon Emission Efficiency, and Firm Value: Evidence from Global Power Companies

This study examines the effect of climate finance and carbon emission efficiency on firm value, with corporate governance acting as a moderating variable, in global electricity companies. Using a quantitative approach, this research analyzes panel data from publicly listed electricity firms across multiple countries. The results indicate that climate finance has a positive and significant effect on firm value, suggesting that investments in climate-related initiatives enhance market perception and long-term performance. Similarly, carbon emission efficiency is found to positively influence firm value, reflecting the importance of efficient environmental resource management in improving corporate competitiveness. Furthermore, the findings reveal that corporate governance strengthens the relationship between both climate finance and carbon emission efficiency with firm value. Strong governance mechanisms ensure better allocation of financial resources and enhance the credibility of environmental performance, thereby increasing investor confidence. These results highlight the importance of integrating financial, environmental, and governance dimensions in corporate strategy. This study contributes to the literature by providing empirical evidence on the combined role of sustainability and governance in value creation, particularly in a high-emission industry. The findings also offer practical implications for policymakers and corporate managers in promoting sustainable investment and strengthening governance practices to achieve long-term firm value.