The Effect of Implementing the ISO 14001 on Stock Price Crash Risk Moderated by Firm’s Environmental Commitment among Indonesian Companies During the 2022-2024 Period

Abstract

This study aims to analyze the effect of ISO 14001 implementation on stock price crash risk with environmental commitment as a moderating variable among non-financial companies listed on the Indonesia Stock Exchange during the 2022–2024 period. This research employs a quantitative approach using panel data regression with the fixed effect model and robust standard errors. Stock price crash risk is measured using NCSKEW, DUVOL, and CRASH proxies, while environmental commitment is proxied by Scope 3 carbon emission disclosure. The results indicate that ISO 14001 implementation does not have a significant effect on stock price crash risk across all measurement proxies. Furthermore, Scope 3 disclosure and the interaction between ISO 14001 and Scope 3 are also not proven to moderate the relationship with stock price crash risk. This study is expected to contribute to the literature on environmental factors and stock price crash risk, as well as provide consideration for companies and regulators in improving environmental transparency.