The Role of Corporate Governance Mechanism and Green Innovation on Firm Performance

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Published: Dec 14, 2025
DOI: https://doi.org/10.64458/asbnic.v2.90
Keywords:
Corporate Governance, Ownership, Board Size, Green Innovation, Firm Performance

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Khoirina Noor Anindya
Universitas Islam Indonesia, Indonesia

Abstract

This study examines the influence of corporate governance mechanism, specifically ownership concentration and board size on green innovation and its subsequent impact on firm performance. The research aims to understand how corporate governance structures can support Sustainable Development Goals (SDGs) through green innovation adoption, particularly within the Indonesian oil and gas industry. The sample comprises 10 Indonesian oil and gas companies from 2015 to 2024. This research uses archival data collection, especially secondary data from Annual Report, Sustainability Report and Corporate Social Responsibility Report. The analytical tool used in this research is EViews with the Generalized Least Square (GLS) technique. The findings indicate that corporate governance mechanism, as measured by ownership concentration and board size, have no effect on green innovation. This suggests that these governance factors may not be primary drivers of green innovation in this sector. Furthermore, the study reveals that green innovation negatively impacts the firm performance. This implies potential challenges or costs associated with green innovation implementation in the firm.

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Vol. 2 (2025): Volume 2, Tahun 2025
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Articles
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