Examining the role of Islamic Corporate Governance and climate change reporting in shaping stock prices of Mining Companies in the ISSI from 2020 to 2022

Yaafiatul Hasanah; Ely Windarti Hastuti

doi:10.55942/pssj.v5i7.434

Authors

Yaafiatul Hasanah Universitas Darussalam Gontor
Ely Windarti Hastuti Universitas Mataram https://orcid.org/0009-0007-5311-860X

DOI:

https://doi.org/10.55942/pssj.v5i7.434

Keywords:

Islamic Corporate Governance, Climate Change Disclosure, Climate Disclosure Standard Board, Indonesian Sharia Stock Index, Stock Price

Abstract

Mining companies sit at the crossroads of resource extraction and environmental fallout, and their decisions ripple across the planet's greenhouse-gas ledger. The current sustainability narrative places these firms in front and center, pressuring them to clean up operations before the next climate milestone arrives. This study probes whether Islam-inflected corporate governance principles codified by Sharia scholars in Indonesia make any discernible difference when firms' climate-related announcements hit the trading floor. The analysis zeroes in on stocks listed on the Indonesian Sharia Stock Index (ISSI) from 2020 to 2022, years when market nerves about carbon were unusually frayed. Data were collected from annual reports and sustainability disclosures by 28 mining players who habitually remained compliant, allowing for purposive sampling rather than random chance. EViews 12 then handled the panel-data regression, and the output was clear enough: richer climate disclosures buoyed prices, while the Islamic governance score sat on the sideline, glaring, but statistically mute. A final test tried pairing the two variables to see if the interaction sparked any life, yet the cross-term also landed with an insignificant p-value.

Author Biographies

Yaafiatul Hasanah, Universitas Darussalam Gontor

Yaafiatul Hasanah is a fresh graduate from the Management Department at Universitas Darussalam Gontor, with a strong passion for sustainability management and green finance. Throughout her academic journey, she has actively explored topics related to sustainable economics, ethical business strategies, and the role of finance in supporting environmental transitions. She is committed to contributing to sustainable development by promoting innovative, values-based management approaches. Her interests lie in fostering collaboration between public and private sectors to build inclusive and long-term green financial systems.

Ely Windarti Hastuti, Universitas Mataram

Elly Windarti Hastuti is a lecturer at the University of Mataram with a research focus on Islamic financial management and accounting. Her academic interests include the development and governance of Islamic financial institutions, Sharia-compliant financial practices, and the integration of Islamic principles in modern accounting systems. She is actively engaged in research and scholarly activities that contribute to the advancement of Islamic finance and its role in sustainable economic development.

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