The Effect of Green Innovation on Firm Value Moderated by Intellectual Capital in Indonesian Basic Materials and Chemical Industry

The Effect of Green Innovation on Firm Value Moderated by Intellectual Capital in Indonesian Basic Materials and Chemical Industry | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article The Effect of Green Innovation on Firm Value Moderated by Intellectual Capital in Indonesian Basic Materials and Chemical Industry Dwi Suhartini, Ria Sandra Alimbudiono, Tri Kartika Pertiwi, Deshinta Arrova Dewi This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-9042550/v1 This work is licensed under a CC BY 4.0 License Status: Under Revision Version 1 posted 17 You are reading this latest preprint version Abstract Despite growing pressure on manufacturing industries to adopt sustainable practices, empirical evidence on whether green innovation translates into measurable firm value remains mixed, and the boundary conditions governing this relationship—particularly the moderating role of intellectual capital—are poorly understood in emerging market contexts. This study examines the impact of green innovation on firm value and the moderating role of intellectual capital in basic materials and chemicals manufacturing companies listed on the Indonesia Stock Exchange during 2019–2023. Using panel data from 165 observations across 33 companies, this research employs Ordinary Least Squares (OLS) and Generalized Least Squares (GLS) methods with moderated regression analysis. Green innovation is measured through content analysis of sustainability reports, while firm value is assessed using Tobin's Q and Price to Book Value (PBV). Results demonstrate that both green product innovation and green process innovation significantly enhance firm value, with green process innovation showing a stronger effect. Notably, intellectual capital significantly moderates the relationship between green product innovation and firm value, but not for green process innovation. These findings remain robust across alternative measurements and estimation methods. This study contributes to the literature by integrating Resource-Based View Theory and Stakeholder Theory, providing strategic insights for manufacturing companies to optimize green innovation implementation and intellectual capital development for sustainable value creation. Green Innovation Intellectual Capital Firm Value Manufacturing Industry Sustainability Process Innovation Figures Figure 1 1. INTRODUCTION 1.1 Research Background In an increasingly complex industrial landscape, green innovation has become a primary strategy for manufacturing companies, particularly in the basic materials and chemical industries sector in Indonesia. The transition toward sustainable industrial systems has accelerated globally under the Industry 5.0 paradigm, where circular economy principles and environmentally responsible innovation are becoming central to long-term value creation (Mollik et al., 2024 ). Global climate change has served as a major catalyst in driving industrial transformation toward more sustainable practices. Indonesia's commitment in the Paris Agreement to reduce greenhouse gas emissions by 29% by 2030 has placed significant pressure on the industrial sector to adapt and innovate (Hadi, 2019 ). This is reinforced by a series of environmental cases involving basic materials and chemical manufacturing industries in Indonesia during the 2018–2023 period, which highlighted serious consequences of unsustainable industrial practices. The Jakarta Bay pollution case in 2018–2019, for instance, revealed the significant contribution of chemical sector manufacturing companies in damaging aquatic environments (Anugrah, 2022 ). This incident not only resulted in administrative sanctions but also triggered strong public pressure on the industry to adopt more sophisticated waste treatment technologies. Similarly, the gas leak at a Cilegon petrochemical plant in 2020 demonstrated the urgency of innovation in security systems and safer production processes (Joharsono, 2024 ). Additionally, the class action lawsuit related to Jakarta air pollution in 2021 (Putri, 2022 ) and the illegal waste disposal scandal in Karawang in 2022 (Ariefana, 2022 ) further emphasized the importance of better emission control and waste management. These cases not only increased regulatory and reputational risks for companies but also prompted comprehensive evaluation of industrial operational practices. The manufacturing sector has a significant impact on the environment, particularly in energy consumption and waste management. Qureshi et al. ( 2020 ) revealed that this sector is the largest energy consumer, with data from the International Energy Agency showing a contribution of 36% of total global carbon dioxide (CO2) emissions. Furthermore, Agustia et al. ( 2019 ) emphasized that rapid industrial development is directly proportional to increased pollution, not only air but also water at alarming levels, contributing to global warming. Li et al. (2020) defined green innovation as efforts to minimize energy use, reduce raw materials, and prevent pollution during production processes while prioritizing sustainable and environmentally friendly product attributes. According to Xie et al. ( 2019 ) and Yao et al. ( 2021 ), green innovation is divided into two main components: green product innovation and green process innovation. Green product innovation focuses on product modification using environmentally friendly materials to minimize ecosystem impact. Meanwhile, green process innovation emphasizes renewal and development of company production systems by utilizing current technology. Both components play important roles in industrial transformation toward more sustainable business practices. Regulatory and global market pressures have also become major drivers of green innovation adoption. Research by Lee-Makiyama ( 2021 ) shows that the implementation of the Carbon Border Adjustment Mechanism (CBAM) by the European Union could potentially affect 35% of manufacturing exports from developing countries, including Indonesia. Meanwhile, a study by He et al. ( 2022 ) revealed that institutional investors increasingly prioritize companies with strong green innovation practices. The effectiveness of green innovation in improving operational efficiency is supported by Wang et al.'s ( 2020 ) research in Asia, showing that clean production technology implementation can reduce energy consumption by up to 30% and water usage by up to 40%. In Indonesia, research by Handoko et al. ( 2021 ) found that manufacturing companies implementing green process innovation achieved average operational cost savings of 25% over a three-year period. However, green innovation implementation also presents significant challenges for companies. Agustia et al. ( 2019 ) highlighted that developing environmentally friendly processes and products requires substantial investment. Madaleno et al. ( 2020 ) even found negative impacts of environmentally friendly innovation on company performance due to increased costs that must be borne during the innovation adoption process. In line with these findings, challenges in green innovation implementation include high initial investment, uncertainty of short-term economic returns, and resistance to change that need to be overcome. This is where the role of intellectual capital becomes crucial. A company's capacity to develop, adopt, and manage green innovation heavily depends on the quality of human resources, organizational structure, and external relationships it possesses. This research aims to explore the complex relationship between green innovation, intellectual capital, and firm value in the context of the basic materials and chemical manufacturing industry in Indonesia, focusing on the 2019–2023 period. The urgency of this research is supported by various empirical studies showing the strategic role of green innovation in improving company performance and value. Chen et al. (2020) stated that manufacturing industries in China implementing green innovation experienced significant increases in financial performance, with an average Return on Assets (ROA) 15% higher compared to companies not implementing green innovation. In line with this, a longitudinal study by Singh et al. ( 2021 ) on 300 manufacturing companies in Southeast Asia showed that investment in green product innovation positively correlates with increased company market value, measured through Tobin's Q. The role of intellectual capital in strengthening the impact of green innovation has been validated by several recent studies. Zhang and Liu ( 2022 ) found that companies with strong intellectual capital have a 40% higher success rate in implementing green innovation compared to companies with weak intellectual capital. A comprehensive study by Tram and Ngoc (2024) on the manufacturing industry in ASEAN revealed that intellectual capital acts as a catalyst that strengthens the relationship between green innovation and firm value, with significant moderation effects at a 95% confidence level. This series of empirical evidence strengthens the argument that green innovation is not only a response to regulatory and social pressures but also a business strategy that can substantially increase firm value. Prior studies confirm that sustainability-oriented innovation significantly enhances economic and performance outcomes, reinforcing its strategic role in value creation (Fan et al., 2024 ). However, research gaps still exist in Indonesia's specific context, particularly regarding the moderating role of intellectual capital in the relationship between green innovation and firm value in the basic materials and chemical industries sector. This research aims to fill that gap and provide new insights that can benefit business practitioners and policymakers in Indonesia. This research is based on two main theories: Resource-Based View Theory (RBV) and Stakeholder Theory, which provide a comprehensive framework for understanding the relationship between green innovation, intellectual capital, and firm value in the context of Indonesia's basic materials and chemical manufacturing industry. 1.2 Hypothesis Development Green process innovation refers to the renewal and development of company production systems by utilizing current environmentally friendly technology. Implementation of this strategy can improve operational efficiency through reduction of energy, water, and raw material consumption, as well as minimize waste. From the Resource-Based View (RBV) perspective, green process innovation can become a source of sustainable competitive advantage for companies because it meets VRIO criteria (Valuable, Rare, Inimitable, Organized). The complexity of clean production technology that has not been widely adopted in Indonesia's manufacturing industry makes it a rare resource. Through Stakeholder Theory, implementation of green process innovation also helps companies meet various stakeholders' expectations for cleaner and more environmentally friendly production practices, subsequently increasing company reputation and legitimacy, ultimately contributing positively to firm value. Various empirical studies support the statement that green process innovation positively influences firm value. Wang et al.'s ( 2020 ) research in Asia shows clean production technology implementation can reduce energy consumption by up to 30% and water usage by up to 40%. In Indonesia, Handoko et al.'s ( 2021 ) research found that manufacturing companies implementing green process innovation achieved average operational cost savings of 25% over a three-year period. These cost savings can in turn increase profitability and firm value. Therefore, based on strong theoretical arguments from RBV and Stakeholder Theory, as well as empirical evidence support from various previous studies, it can be hypothesized that green process innovation has a positive influence on the value of basic materials and chemical manufacturing companies in Indonesia. Companies that successfully implement green process innovation are predicted to enjoy increased efficiency, reduced costs, better reputation, and higher market value compared to companies not implementing environmentally friendly process innovation. H1. Green process innovation has a positive influence on firm value. Green product innovation focuses on modification and development of products using environmentally friendly materials to minimize negative impacts on ecosystems. Implementation of this strategy can access market segments that care about the environment and meet consumer preferences that increasingly appreciate sustainable products. This has the potential to increase company revenue through product differentiation and new market penetration. Resource-Based View (RBV) provides theoretical foundation that green product innovation can become a source of company competitive advantage. The complexity in designing products that meet environmental standards while maintaining quality and cost efficiency makes it a capability that is still rare and difficult to imitate in the industry. Cross-departmental coordination and well-organized product management systems are needed for effective green product innovation implementation. Stakeholder theory strengthens the argument that green product innovation contributes to increased firm value through fulfillment of stakeholder expectations. Development of environmentally friendly products responds to the demands of increasingly environmentally conscious consumers. Fulfillment of these expectations can increase company reputation and strengthen relationships with various stakeholders, ultimately having a positive impact on firm value. Singh et al.'s ( 2021 ) longitudinal study on 300 manufacturing companies in Southeast Asia shows investment in green product innovation positively correlates with increased company market value, measured through Tobin's Q. Yucha et al. ( 2024 ) identified a positive and significant relationship between green product innovation and repeat purchases, meaning the more intensive the implementation of green product innovation, the higher the level of repeat purchases achieved by the company. Therefore, based on the RBV and Stakeholder Theory theoretical framework, and supported by empirical findings, it can be hypothesized that green product innovation has a positive influence on the value of basic materials and chemical manufacturing companies in Indonesia. Companies that successfully develop and market innovative environmentally friendly products are predicted to increase market share, stronger reputation, and higher firm value appreciation from investors. H2. Green product innovation has a positive influence on firm value. Intellectual capital plays an important role in strengthening the positive influence of green process innovation on firm value. The three components of intellectual capital - human capital (employee expertise and knowledge in environmentally friendly process technology), structural capital (infrastructure, systems, and organizational culture supporting sustainable process innovation), and relational capital (network of relationships with stakeholders such as green technology suppliers, regulators, and communities) - synergistically increase company capability in effectively implementing environmentally friendly production process innovation. Resource-Based View (RBV) provides the theoretical framework underlying the moderation effect of intellectual capital. Human capital with high technical competence in green process technology can optimize energy efficiency, minimize waste, and reduce carbon footprint in production processes. Strong structural capital can accelerate adoption and implementation of environmentally friendly manufacturing practices. Relational capital can expand company access to resources and knowledge needed for successful green process innovation implementation. Stakeholder theory explains the theoretical framework that intellectual capital strengthens the impact of green process innovation on firm value through fulfillment of stakeholder expectations. Competent human capital helps companies design production processes expected by customers and regulators. Conducive structural capital facilitates companies in managing and responding to stakeholder demands for responsible manufacturing practices. Relational capital facilitates involvement and proactive communication with various stakeholders in increasing company transparency and accountability in green process innovation implementation. Empirical evidence from various recent studies confirms the moderating role of intellectual capital. Septanti et al. ( 2024 ) in the manufacturing and mining industry sector in Indonesia found that companies with strong intellectual capital, marked by ISO 14001 certification, have much higher success rates in reducing greenhouse gas emissions through environmentally friendly process innovation. Eviana et al.'s ( 2023 ) study revealed that intensive collaboration with green technology suppliers (relational capital) and effective knowledge management systems (structural capital) strengthen the positive impact of green process innovation implementation on operational performance and market value of manufacturing companies in Indonesia. Based on Resource-Based View and Stakeholder Theory theoretical foundation, and reinforced by relevant empirical findings, it can be hypothesized that Intellectual Capital moderates the positive influence of Green Process Innovation on Firm Value of basic materials and chemical manufacturing companies in Indonesia. Companies with strong intellectual capital in all three dimensions (human, structural, relational) are predicted to be more successful in implementing environmentally friendly production process innovation, thereby strengthening its positive impact on operational efficiency, company reputation, and ultimately firm value. H3. Intellectual Capital moderates the relationship between Green Process Innovation and Firm Value. Intellectual Capital plays an important role in strengthening the positive influence of green product innovation on firm value. Intellectual capital collectively can increase company capability in developing innovative environmentally friendly products, subsequently meeting expectations of consumers who increasingly appreciate sustainable products. Resource-Based View provides theoretical foundation that intellectual capital can moderate the relationship between green product innovation and firm value. Technical expertise and knowledge about sustainable product design can develop innovative environmentally friendly products that match market demand. Integrated environmental management systems and organizational culture supporting green innovation can accelerate the process of developing and launching new products. Close collaboration with environmentally friendly raw material suppliers and deep understanding of customer preferences contribute to successful commercialization of green products. Stakeholder Theory strengthens the argument for the moderating role of intellectual capital. Human capital helps companies understand and anticipate stakeholder needs for environmentally friendly products. Structural capital provides effective stakeholder relationship management systems in the context of green product development. Relational capital facilitates involvement with various stakeholders. Effective stakeholder management ultimately increases acceptance and legitimacy of green products in the market, thereby strengthening the impact of green product innovation on firm value. Zhang and Liu ( 2022 ) found companies with strong intellectual capital have a 40% higher success rate in implementing green innovation compared to companies with weak intellectual capital. Tram and Ngoc's (2024) study on the manufacturing industry in ASEAN revealed intellectual capital acts as a catalyst that strengthens the relationship between green innovation and firm value, with significant moderation effects at a 95% confidence level. Therefore, based on Resource-Based View and Stakeholder Theory, and supported by relevant empirical findings, it can be hypothesized that Intellectual Capital moderates the positive influence of Green Product Innovation on Firm Value of basic materials and chemical manufacturing companies in Indonesia. Companies with strong intellectual capital, including human capital, structural capital, and relational capital, are predicted to be more effective in developing and commercializing innovative environmentally friendly products, thereby strengthening the positive impact of green product innovation on firm value. H4. Intellectual Capital moderates the relationship between Green Product Innovation and Firm Value. 1.3 Research Conceptual Model Figure Based on the literature review and hypothesis development outlined above, this research develops a conceptual model depicting the relationship between green innovation, intellectual capital, and firm value. This model also considers three control variables: firm age, firm size, and leverage. These control variables are included to isolate the specific influence of green innovation on firm value and increase research internal validity. 2. METHODOLOGY 2.1 Sample Method and Data Collection The population in this research consists of all basic materials and chemical manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2023 period. The data used are financial reports, annual reports, and sustainability reports of sample companies during the 2019–2023 period. The data collection method is documentation study and content analysis. The research population consists of basic materials and chemical manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023, totaling 73 companies. Sample determination uses purposive sampling technique. The sampling technique uses purposive sampling with criteria: (1) Basic materials and chemical manufacturing sector companies consistently listed on IDX during the 2019–2023 period; (2) Basic materials and chemical manufacturing sector companies not experiencing losses; (3) Companies publishing complete financial reports and annual reports during the research period; (4) Companies disclosing information related to green innovation practices in sustainability reports, as follows: Table 1 Sample Selection Criteria No. Criteria Numbers 1 Basic materials and chemical manufacturing sector companies consistently listed on IDX during 2019–2023 period 73 2 Basic materials and chemical manufacturing sector companies not experiencing losses 68 3 Companies publishing complete financial reports and annual reports during research period 37 4 Companies disclosing information related to green innovation practices in sustainability reports 33 Total (Number of Samples × Research Years) 165 (33 x 5) 2.2 Variable Measurement This research uses firm value as the dependent variable measured using Tobin's Q ratio, which shows financial market estimates regarding the return value of each investment. Firm value is considered good if it produces a Tobin's Q value greater than 1, indicating that profits from company assets exceed the investment value issued. Tobin's Q calculation is performed by adding market value (total outstanding shares multiplied by current share price) with total book value of liabilities, then dividing by total company assets. Green innovation refers to company participation in obtaining ISO 14001 certification, which is an international standard for environmental management. Independent variables include green product innovation and green process innovation. Green product innovation is measured through several indicators such as product design changes to prevent pollution or toxic components, improvement of environmentally friendly packaging, and design modifications for energy efficiency during use. Green process innovation is assessed through four main aspects: reduction of harmful emissions and waste, waste recycling, efficient use of resources (water, electricity, coal, and oil), and optimization of raw material use. Both green innovation variables use content analysis method with a 0–2 assessment scale, where a score of 0 is given if the company does not disclose the intended item, a score of 1 if disclosed with simple description, and a score of 2 if disclosed with detailed description. The moderating variable intellectual capital is measured using Value Added Intellectual Coefficient (VAIC), which is a combination of three efficiency components: VACA (Value Added Capital Employed), VAHU (Value Added Human Capital), and STVA (Structural Capital Value Added). VACA is calculated by dividing value added by employed capital, VAHU is obtained from dividing value added by labor costs, while STVA is calculated by dividing structural capital by value added. Total VAIC is obtained from the sum of these three components. Value added itself is the difference between total sales and revenue with company expenses, excluding employee salary expenses. This research also includes three control variables: firm age, firm size, and leverage to reduce potential bias in estimation and increase research internal validity. Additionally, year dummy variables are used to control for time effects in panel data analysis for the 2019–2023 period. 2.3 Analysis Technique This research uses a quantitative approach with causal design to test the influence of green product innovation and green process innovation on firm value, with intellectual capital as a moderating variable. Data analysis techniques use descriptive statistical testing and inferential statistics with STATA software assistance for data processing. The main analysis method used is Multiple Regression Analysis (MRA) with an interaction approach, performed by adding product variables between independent variables and moderating variables, namely GProdI × IC and GProcI × IC. To minimize potential multicollinearity, variables involved in interactions are first centered on the mean before forming interaction variables. Data analysis is conducted through a series of systematic and comprehensive stages. The first stage begins with descriptive statistical analysis to provide an overview of research data characteristics, including calculation of minimum, maximum, mean, and standard deviation values for all variables. Before hypothesis testing, a series of classical assumption tests are conducted to ensure the research model meets Best Linear Unbiased Estimator (BLUE) assumptions. After ensuring classical assumptions are met, analysis continues to moderation regression model testing conducted in two stages. The first stage focuses on analyzing the direct influence of green process innovation and green product innovation on firm value, considering control variables of firm age, firm size, and leverage. The second stage analyzes the moderation effect of intellectual capital through calculation and testing of interactions between independent variables and moderators. Result interpretation is conducted comprehensively by linking empirical findings to theoretical context and comparing them with previous research. All analysis stages are conducted using SPSS software with a 5% significance level, and analysis results are presented in tables and graphs accompanied by in-depth discussion. To ensure validity and consistency of research results, a series of robustness tests are conducted through two main approaches. First, using alternative measurements for the firm value dependent variable by using Price to Book Value (PBV) as an additional proxy besides Tobin's Q. PBV is calculated by dividing market price per share by book value per share, reflecting market assessment of company equity book value. If testing results with PBV show consistency in direction and significance with results using Tobin's Q, then research findings can be considered robust to changes in dependent variable measurement. Second, using alternative estimation methods through Generalized Least Squares (GLS) to address potential heteroscedasticity and autocorrelation problems that may not be fully addressed in the OLS model, especially considering the panel data structure in this research. GLS is a more efficient estimation technique in dealing with homoscedasticity assumption violations by giving different weights to observations based on their variance. This approach aligns with best practices in empirical research emphasizing the importance of testing result sensitivity to various model specifications (Ioannidis et al., 2017 ). 3. RESULTS 3.1 Data Description Descriptive statistical analysis provides an overview of the characteristics of the data used. This study analyzes 165 observations from 33 manufacturing companies in the basic materials and chemicals sector listed on the Indonesia Stock Exchange during the 2019–2023 period. The following table presents the results of the descriptive statistical analysis: Table 2 Descriptive Statistical Analysis Results Variable Mean Standard Deviation Median Minimum Maximum GProdI 1.323 0.664 1.500 0.000 2.000 GProcI 1.014 0.670 1.000 0.000 2.000 IC 4.705 0.471 4.783 3.264 5.668 FV 1.225 0.144 1.216 0.888 1.588 PBV 1.559 0.330 1.508 0.645 2.378 AGE 40.242 11.684 43.000 12.000 66.000 SIZE 29.104 1.641 28.743 26.164 32.683 LEV 0.386 0.171 0.388 0.044 0.827 Source: Data Processed with STATA, 2025 The descriptive analysis reveals several important patterns in the data. The slightly higher implementation level of green product innovation (GprodI) compared to green process innovation (GprocI) indicates that companies tend to focus more on modifying final products rather than transforming production processes. The relatively homogeneous intellectual capital (IC) at good efficiency levels demonstrates companies' readiness to support green innovation implementation. Firm value (FV) on average exceeding the book value of assets (PBV) provides a positive indication that the market appreciates the performance and prospects of companies in this sector. The sample characteristics dominated by established companies with large size and moderate leverage demonstrate a strong foundation for adopting and developing sustainable green innovation practices. Table 3 Pearson Correlation Matrix Variable GProdI GProcI IC FV PBV AGE SIZE LEV GProdI 1.000 GProcI 0.438 *** 1.000 (0.000) IC 0.474 *** 0.484 *** 1.000 (0.000) (0.000) FV 0.502 *** 0.758 *** 0.578 *** 1.000 (0.000) (0.000) (0.000) PBV 0.610 *** 0.510 *** 0.441 *** 0.586 *** 1.000 (0.000) (0.000) (0.000) (0.000) AGE 0.064 0.306 *** 0.101 0.349 *** -0.131 * 1.000 (0.413) (0.000) (0.197) (0.000) (0.094) SIZE 0.344 *** 0.585 *** 0.237 *** 0.382 *** 0.136 * 0.408 *** 1.000 (0.000) (0.000) (0.002) (0.000) (0.082) (0.000) LEV 0.014 0.229 *** 0.194 ** 0.051 -0.102 0.138 * 0.355 *** 1.000 (0.861) (0.003) (0.013) (0.518) (0.192) (0.078) (0.000) Source: Data Processed with STATA, 2025 The significant positive correlation between green process innovation (GprocI) and firm value (FV) (0.758) and green product innovation (GprodI) and firm value (FV) (0.502) supports Hypothesis 1 and Hypothesis 2, which state that green innovation positively influences firm value. The significant positive correlation between intellectual capital (IC) and both dimensions of green innovation as well as firm value (FV) provides initial indication that intellectual capital (IC) potentially moderates the relationship between green innovation and firm value (FV), as hypothesized in Hypothesis 3 and Hypothesis 4. When using Price to Book Value (PBV) as an alternative measure of firm value, green product innovation (GprodI) shows a higher correlation (0.610; p < 0.01) compared to green process innovation (GprocI) (0.510; p < 0.01). This difference is interesting as it indicates that both dimensions of green innovation have different influences on market perception depending on the valuation metric used. Control variables show varied correlation patterns, where firm size (SIZE) has positive correlations with almost all variables, while firm age (AGE) and leverage (LEV) show more selective relationships. 3.2 Hypothesis Testing Results Hypothesis testing in this study was conducted using the Ordinary Least Squares (OLS) method with a Moderated Regression Analysis (MRA) approach. Regression analysis was performed in stages to test the direct effects of green product innovation and green process innovation on firm value (H1 and H2), as well as to test the moderating effects of intellectual capital on these relationships (H3 and H4). The regression models use Tobin's Q as the primary measure of firm value with control variables including firm age, firm size, and leverage, as well as year dummies to control for time effects. The following is a summary of the hypothesis testing results: Table 4 Hypothesis Testing Results with Tobin's Q Variable (1) (2) (3) (4) (5) (6) FV FV FV FV FV FV GProdI 0.043 *** 0.027 ** 0.037 *** 0.055 *** 0.037 *** 0.051 *** (3.53) (2.17) (3.21) (4.50) (2.89) (4.74) GProcI 0.143 *** 0.127 *** 0.133 *** 0.155 *** 0.135 *** 0.149 *** (11.15) (9.74) (10.66) (11.08) (9.42) (11.61) IC 0.069 *** 0.082 *** 0.073 *** 0.086 *** (3.66) (4.86) (3.70) (5.04) GProdI*IC 0.078 *** 0.109 *** (2.94) (4.30) GProcI*IC 0.038 0.022 (1.31) (0.83) AGE 0.002 *** 0.002 *** 0.003 *** (3.85) (4.10) (5.51) SIZE -0.016 *** -0.012 ** -0.018 *** (-2.71) (-2.15) (-3.85) LEV -0.069 * -0.102 ** -0.097 *** (-1.77) (-2.54) (-2.77) _cons 1.016 *** 0.732 *** 0.621 *** 1.384 *** 0.995 *** 1.030 *** (60.00) (9.00) (8.38) (9.05) (5.24) (6.60) Year FE Yes Yes Yes Yes Yes Yes r2 0.622 0.655 0.704 0.668 0.704 0.769 r2_a 0.607 0.640 0.687 0.649 0.685 0.751 N 165 165 165 165 165 165 t statistics in parentheses * p < 0.1, ** p < 0.05, *** p < 0.01 Source: Data Processed with STATA, 2025 3.3 Robustness Test: Hypothesis Testing With Price to Book Value (PBV) To ensure the validity and consistency of research findings, a robustness test was conducted by replacing the firm value measurement indicator from Tobin's Q to Price to Book Value (PBV). PBV is a ratio that measures the market's valuation of a company's book value of equity, calculated by dividing the market price per share by the book value per share. Using PBV as an alternative measure allows this study to confirm whether the relationships among green innovation, intellectual capital, and firm value are consistent across different valuation metrics. The following are the hypothesis testing results using PBV as the dependent variable: Table 5 Hypothesis Testing Results with Price to Book Value (PBV) (1) (2) (3) (4) (5) (6) PBV PBV PBV PBV PBV PBV GProdI 0.233 *** 0.217 *** 0.242 *** 0.235 *** 0.218 *** 0.261 *** (6.78) (6.22) (8.18) (6.74) (6.28) (9.56) GProcI 0.147 *** 0.130 *** 0.157 *** 0.254 *** 0.236 *** 0.282 *** (4.58) (3.96) (5.09) (7.47) (6.97) (10.39) IC 0.071 0.114 ** 0.068 0.109 *** (1.34) (2.61) (1.29) (2.90) GProdI*IC 0.325 *** 0.340 *** (4.93) (5.83) GProcI*IC 0.045 0.072 (0.61) (1.23) AGE -0.006 *** -0.006 *** -0.005 *** (-3.52) (-3.44) (-3.22) SIZE -0.039 *** -0.035 ** -0.054 *** (-2.61) (-2.43) (-4.45) LEV -0.252 ** -0.282 *** -0.268 *** (-2.57) (-2.70) (-3.11) _cons 1.102 *** 0.807 *** 0.450 ** 2.481 *** 2.117 *** 2.226 *** (17.98) (3.38) (2.20) (6.46) (4.65) (5.81) Year FE Yes Yes Yes Yes Yes Yes r2 0.446 0.453 0.558 0.564 0.570 0.690 r2_a 0.425 0.429 0.532 0.539 0.542 0.666 N 165 165 165 165 165 165 t statistics in parentheses * p < 0.1, ** p < 0.05, *** p < 0.01 Source: Data Processed with STATA, 2025 3.4 Additional Robustness Test with Generalized Least Squares (GLS) Method As an additional robustness test, this study employs an alternative estimation method, Generalized Least Squares (GLS) with panels (heteroskedastic) option to address potential heteroskedasticity issues in panel data. GLS is a more efficient estimation technique in dealing with violations of the homoskedasticity assumption by assigning different weights to observations based on their variance (Wooldridge, 2010 ). The application of GLS provides more robust and efficient estimates when heteroskedasticity exists in panel data. If GLS estimation results show consistency with OLS results in terms of direction of effect and statistical significance, this strengthens confidence in the research findings and indicates that the results are not sensitive to the estimation method used. The following is a summary of the additional GLS robustness testing results: Table 6 GLS Estimation Results with Tobin's Q Variable (1) (2) (3) (4) (5) (6) FV FV FV FV FV FV GProdI 0.048 *** 0.039 *** 0.041 *** 0.059 *** 0.047 *** 0.047 *** (4.69) (3.58) (4.06) (5.53) (4.27) (4.83) GProcI 0.137 *** 0.121 *** 0.126 *** 0.168 *** 0.147 *** 0.161 *** (14.86) (12.18) (13.48) (14.89) (12.55) (15.73) IC 0.064 *** 0.078 *** 0.066 *** 0.085 *** (4.13) (5.52) (4.40) (6.64) GProdI*IC 0.087 *** 0.114 *** (3.98) (5.98) GProcI*IC 0.034 0.012 (1.56) (0.62) AGE 0.002 *** 0.002 *** 0.003 *** (4.25) (4.89) (6.48) SIZE -0.018 *** -0.015 *** -0.019 *** (-3.85) (-3.19) (-4.94) LEV -0.089 *** -0.101 *** -0.113 *** (-2.73) (-2.95) (-3.91) _cons 1.011 *** 0.735 *** 0.635 *** 1.451 *** 1.087 *** 1.071 *** (67.59) (10.86) (10.09) (11.59) (7.26) (8.62) Year FE Yes Yes Yes Yes Yes Yes chi2 407.640 435.013 541.716 538.805 595.343 830.058 N 165 165 165 165 165 165 t statistics in parentheses * p < 0.1, ** p < 0.05, *** p < 0.01 Source: Data Processed with STATA, 2025 3.5 Additional Robustness Test: GLS Estimation With Price to Book Value (PBV) As a continuation of the robustness test, this study also estimates the model using the Generalized Least Squares (GLS) method with Price to Book Value (PBV) as an alternative measure of firm value. The combination of alternative estimation method (GLS) and alternative measurement (PBV) provides comprehensive validation of the study's main findings. GLS with panels (heteroskedastic) option is used to address potential heteroskedasticity issues in panel data, producing more efficient estimates by assigning different weights to observations based on their variance. The following is a summary of the additional GLS robustness testing results using PBV as the dependent variable: Table 7 GLS Estimation Results with Price to Book Value (PBV) (1) (2) (3) (4) (5) (6) PBV PBV PBV PBV PBV PBV GProdI 0.242 *** 0.240 *** 0.270 *** 0.256 *** 0.242 *** 0.282 *** (8.24) (7.66) (9.94) (9.18) (8.22) (11.42) GProcI 0.154 *** 0.144 *** 0.181 *** 0.265 *** 0.254 *** 0.305 *** (5.92) (4.99) (7.27) (9.08) (8.30) (14.14) IC 0.026 0.102 *** 0.067 * 0.096 *** (0.62) (2.77) (1.76) (3.37) GProdI*IC 0.296 *** 0.358 *** (6.10) (8.68) GProcI*IC 0.079 0.060 (1.38) (1.37) AGE -0.007 *** -0.007 *** -0.005 *** (-4.89) (-5.09) (-4.79) SIZE -0.042 *** -0.040 *** -0.060 *** (-3.73) (-3.52) (-6.43) LEV -0.227 *** -0.247 *** -0.272 *** (-2.69) (-2.79) (-3.79) _cons 1.096 *** 0.991 *** 0.471 *** 2.544 *** 2.247 *** 2.426 *** (26.00) (5.56) (2.85) (8.85) (6.35) (8.68) Year FE Yes Yes Yes Yes Yes Yes chi2 194.726 189.125 356.981 295.841 304.215 632.624 N 165 165 165 165 165 165 t statistics in parentheses * p < 0.1, ** p < 0.05, *** p < 0.01 Source: Data Processed with STATA, 2025 The consistent rejection of Hypothesis 4 across all method-measurement combinations (OLS-Tobin's Q, OLS-PBV, GLS-Tobin's Q, GLS-PBV) strengthens the conclusion that the characteristics of green process innovation, which are more technical, standardized, and regulation-bound, make its implementation less dependent on intellectual capital differentiation. Process innovations such as emission reduction, waste treatment, and energy efficiency have clear implementation standards (such as ISO 14001) and directly measurable benefits, allowing the market to evaluate them without requiring reinforcement from intellectual capital. Thus, Hypothesis 4 remains rejected. Table 8 Comparison of All Estimation Methods (Full Model) GProdI OLS FV OLS PBV GLS FV GLS PBV 0.051*** 0.261*** 0.047*** 0.282*** GProcI 0.149*** 0.282*** 0.161*** 0.305*** IC 0.086*** 0.109*** 0.085*** 0.096*** GProdI×IC 0.109*** 0.340*** 0.114*** 0.358*** GProcI×IC 0.022 n.s. 0.072 n.s. 0.012 n.s. 0.060 n.s. Age 0.003*** -0.005*** 0.003*** -0.005*** Size -0.018*** -0.054*** -0.019*** -0.060*** Leverage -0.097*** -0.268*** -0.113*** -0.272*** Note: *** p < 0,01; ** p < 0,05; * p < 0,1; n.s. = not significant Source: Data Processed with STATA, 2025 The comprehensive comparison shows very high consistency across all combinations of estimation methods and firm value measurements. All main research variables (GProdI, GProcI, and GProdI×IC) show positive directional effects and consistent significance levels (p < 0.01) across all four model specifications. Similarly, the interaction variable GProcI×IC is consistently insignificant across all specifications, with p-values ranging from 0.171 to 0.536. Intellectual capital (IC) shows significant positive direct effects across all models, with significance levels varying from p < 0.01 to p < 0.10. 3.6 Discussion 3.6.1 Green Process Innovation on Firm Value Research results show that green process innovation has a positive and significant effect on firm value in the basic materials and chemicals manufacturing industry in Indonesia. This finding confirms that in the context of capital-intensive basic materials and chemicals manufacturing industry, innovation in environmentally friendly production processes makes a substantial contribution to firm value creation. From the Resource-Based View (RBV) Theory perspective, green process innovation can be explained as a source of sustainable competitive advantage because it meets the VRIO criteria (Valuable, Rare, Inimitable, Organized). First, green process innovation is valuable because it directly contributes to improving operational efficiency through reduced consumption of energy, water, and raw materials, as well as minimizing waste, which ultimately reduces production costs significantly in the long term. Second, the complexity of cleaner production technology that has not been widely adopted in Indonesia's manufacturing industry makes it a rare resource. Third, long-term organizational learning processes and large required investments make green process innovation difficult to imitate by competitors. Fourth, effective implementation requires well-organized organizational structure and environmental management systems. Stakeholder Theory provides a complementary explanation of how green process innovation contributes to increasing firm value. This theory emphasizes that implementing green process innovation helps companies meet stakeholder expectations for cleaner and more environmentally friendly production practices. This can enhance the company's reputation and legitimacy in the eyes of regulators, communities, employees, and other stakeholders (Jakhar et al., 2018). In the context of Indonesia's basic materials and chemicals manufacturing industry facing increasingly strict environmental regulations, the ability to meet stakeholder expectations through more sustainable production processes becomes an important determinant in maintaining and increasing firm value. These research findings align with various previous empirical studies confirming the positive relationship between green process innovation and firm value. Research by Wang et al. ( 2020 ) in Asia shows that implementing cleaner production technology can reduce energy consumption by up to 30% and water usage by up to 40%. These resource savings directly contribute to reduced operational costs and increased company profitability. In the Indonesian context, research by Handoko et al. ( 2021 ) found that manufacturing companies implementing green process innovation achieved average operational cost savings of 25% over a three-year period. A study by Eviana et al. ( 2023 ) on 45 manufacturing companies in Indonesia during 2018–2021 also confirmed that green process innovation implementation contributes to long-term operational cost reductions of 12–18%. A study by He et al. ( 2022 ) reveals that institutional investors increasingly prioritize companies with strong green innovation practices. Research by Kim et al. ( 2023 ) also reveals a global trend where companies with strong green innovation practices have better access to sustainable financing, with average capital costs 1.5% lower compared to conventional companies. These findings indicate that the market gives positive appreciation to companies implementing green process innovation, reflected in increased firm value through reduced cost of capital and increased market valuation. The integration of both theories (RBV and Stakeholder Theory) explains how green process innovation increases firm value through two main mechanisms. First, through developing unique internal capabilities in environmentally friendly production processes (RBV) that create competitive advantage through cost efficiency and differentiation. Second, through meeting stakeholder expectations for more sustainable manufacturing practices (Stakeholder Theory) that enhance legitimacy, reputation, and access to external resources. Xie et al. ( 2019 ) in their research on manufacturing companies in China found that green process innovation meeting VRIO criteria significantly contributes to improving environmental performance and company competitive advantage. Li et al. (2020) define green innovation as efforts to minimize energy use, reduce raw materials, and prevent pollution during production processes while prioritizing sustainable and environmentally friendly product attributes. Based on this analysis, it can be concluded that green process innovation has a positive and significant effect on the value of basic materials and chemicals manufacturing companies in Indonesia. This positive relationship is supported by strong theoretical foundations from Resource-Based View Theory and Stakeholder Theory, and confirmed by various empirical evidence from previous research. Companies successfully implementing green process innovation have been proven to enjoy improved operational efficiency, reduced production costs, better reputation among stakeholders, and higher market value compared to companies not implementing environmentally friendly process innovation. These findings provide important implications for business practitioners and policymakers in optimizing green process innovation implementation as a sustainable firm value enhancement strategy. 3.6.2 Green Product Innovation on Firm Value Research results prove that green product innovation has a positive and significant effect on firm value in the basic materials and chemicals manufacturing industry in Indonesia. Green product innovation is defined as the development and introduction of new products designed to reduce environmental impact (Xie et al., 2019 ). According to Li et al. (2020), green innovation is an effort to minimize energy use, reduce raw materials, and prevent pollution during production processes while prioritizing sustainable and environmentally friendly product attributes. Xie et al. ( 2019 ) and Yao et al. ( 2021 ) classify green innovation into two main components: green product innovation and green process innovation. Green product innovation specifically focuses on modifying and developing products using environmentally friendly materials to minimize negative impacts on ecosystems. Based on the measurement framework developed by Xie et al. ( 2019 ), green product innovation can be measured through several main indicators: (1) making changes to product design with the aim of preventing pollution or toxic components during the production process; (2) improving and designing environmentally friendly packaging for both old and new products; and (3) making product design modifications to achieve increased energy efficiency during use. These indicators reflect comprehensive company efforts to integrate environmental sustainability aspects into the product life cycle, from the design stage to consumer use. From the Resource-Based View (RBV) Theory perspective, green product innovation can be understood as a source of sustainable competitive advantage because it meets the VRIO criteria (Valuable, Rare, Inimitable, Organized). The ability to develop innovative environmentally friendly products is a valuable resource because it allows companies to meet the continuously growing market demand for sustainable products. The complexity in designing products that meet environmental standards while maintaining quality and cost efficiency makes it a capability that is still rare and difficult to imitate in the industry. Cross-departmental coordination and well-organized product management systems are needed for effective green product innovation implementation. The RBV perspective in the context of green product innovation is supported by empirical evidence from various studies. Research conducted by Permana et al. (2021) on the manufacturing industry in Indonesia confirms that green product innovation that is valuable, rare, inimitable, and organized has positive effects on innovation performance and company profitability. This finding confirms that companies able to develop unique capabilities in creating environmentally friendly products will obtain competitive advantages reflected in increased firm value. Agustia et al. ( 2019 ) also found that companies adopting green innovation successfully reduce production costs and increase economic efficiency, thereby creating sustainable competitive advantage. Stakeholder Theory provides a complementary explanation of how green product innovation contributes to increasing firm value through meeting stakeholder expectations. Developing environmentally friendly products responds to increasingly environmentally conscious consumer demand, investor expectations for sustainable product portfolios, and pressure from environmental NGOs to minimize ecological impact. Research by Jakhar et al. (2018) on manufacturing companies in India reveals that green innovation adoption helps companies meet pressure from various stakeholders, such as government regulations, consumer demands, and investor requirements, thereby increasing company reputation and value. A study by Erlinda et al. (2022) on the palm oil industry in Indonesia also confirms that green innovation practices meeting multi-stakeholder expectations have positive effects on company legitimacy and sustainability performance. Meeting stakeholder expectations ultimately increases company reputation and strengthens relationships with various stakeholders, which positively impacts firm value. In the context of Indonesia's basic materials and chemicals manufacturing industry, the ability to develop products meeting environmental standards and stakeholder expectations becomes an important determinant in maintaining social legitimacy and increasing firm value. Implementing green product innovation allows companies to access environmentally conscious market segments and meet increasingly appreciative consumer preferences for sustainable products. Yucha et al. ( 2024 ) identified a positive and significant relationship between green product innovation and repeat purchases, meaning that the more intensive the green product innovation implementation, the higher the level of repeat purchases achieved by the company. This finding indicates that innovative green products can build customer loyalty that ultimately contributes to increased revenue and firm value. Strong empirical evidence regarding the positive relationship between green product innovation and firm value is strengthened by a longitudinal study by Singh et al. ( 2021 ) on 300 manufacturing companies in Southeast Asia proving that investment in green product innovation positively correlates with increased company market value, as measured by Tobin's Q. This finding confirms that the market gives positive appreciation to companies consistently developing environmentally friendly products, reflected in higher valuations. Dewi and Rahmianingsih ( 2020 ) also reveal that green innovation implementation provides dual benefits for companies, not only in environmental sustainability aspects but also in operational efficiency improvement. Huang and Li ( 2017 ) found that companies adopting green innovation successfully reduce production costs and increase economic efficiency. However, green product innovation implementation also presents significant challenges for companies. Agustia et al. ( 2019 ) highlight that developing environmentally friendly processes and products requires substantial investment. Madaleno et al. ( 2020 ) even found negative impacts of environmentally friendly innovation on company performance in the short term due to increased costs that must be borne during the innovation adoption process. Consistent with these findings, Huang and Li ( 2017 ) observed that although green innovation provides various benefits, often the costs incurred are not commensurate with the benefits obtained by companies in the short term. The robustness of these research findings is confirmed through testing with alternative measures of firm value, namely Price to Book Value (PBV). Test results show that green product innovation still has a positive and significant effect on PBV (β = 0.261, t = 9.56, p < 0.01). Interestingly, the green product innovation coefficient in the PBV model (0.261) is much larger compared to the Tobin's Q model (0.051). This indicates that green product innovation has a more substantial impact on market valuation of company equity compared to total asset valuation. Investors appear to give higher appreciation to the company's ability to develop environmentally friendly products when valuing company equity. The integration of Resource-Based View Theory and Stakeholder Theory provides comprehensive understanding of green product innovation mechanisms in increasing firm value. Through the RBV perspective, green product innovation creates competitive advantage through product differentiation and access to sustainable market segments. Through the Stakeholder Theory perspective, green product innovation increases company legitimacy and reputation through meeting multi-stakeholder expectations. Both mechanisms synergistically contribute to increased firm value reflected in higher market valuations. 3.6.3 Intellectual Capital Moderates the Relationship Between Green Process Innovation and Firm Value Research results show that intellectual capital does not play a significant moderating role in the relationship between green process innovation and firm value in the basic materials and chemicals manufacturing industry in Indonesia. Therefore, the hypothesis stating that intellectual capital moderates the relationship between green process innovation and firm value is rejected. Intellectual capital in this study is measured using the Value Added Intellectual Coefficient (VAIC), which is a combination of three efficiency components: VACA (Value Added Capital Employed), VAHU (Value Added Human Capital), and STVA (Structural Capital Value Added) (Acuña-Opazo & González, 2021). All three intellectual capital components, such as human capital (employee expertise and knowledge in environmentally friendly process technology), structural capital (infrastructure, systems, and organizational culture supporting sustainable process innovation), and relational capital (network of relationships with stakeholders such as green technology suppliers, regulators, and communities), are theoretically hypothesized to strengthen company capabilities in effectively implementing environmentally friendly production process innovation. From the Resource-Based View (RBV) Theory perspective, theoretically intellectual capital is expected to strengthen the effect of green process innovation on firm value. Human capital with high technical competence in green process technology should enable companies to optimize energy efficiency, minimize waste, and reduce carbon footprint in production processes. Strong structural capital, such as comprehensive environmental management systems and a continuous improvement culture in process innovation, should accelerate the adoption and implementation of environmentally friendly manufacturing practices. Relational capital, including strategic partnerships with leading green process technology suppliers and support from external stakeholders, should expand company access to resources and knowledge needed for successful green process innovation implementation. Stakeholder Theory also provides theoretical expectations regarding the moderating role of intellectual capital. Competent human capital should help companies design production processes that are not only environmentally friendly but also meet quality and safety standards expected by customers and regulators. Conducive structural capital should facilitate companies in managing and responding to stakeholder demands regarding responsible manufacturing practices. Relational capital should facilitate proactive engagement and communication with various stakeholders, thereby increasing company transparency and accountability in implementing green process innovation (Jakhar et al., 2018). The insignificant moderating effect of intellectual capital on the relationship between green process innovation and firm value can be explained from several perspectives. First, green process innovation in the basic materials and chemicals manufacturing industry tends to be more technical and standardized, where its implementation depends more on technology and physical infrastructure investment compared to intellectual capital. Wang et al. ( 2020 ) in their research in Asia found that cleaner production technology implementation can reduce energy consumption by up to 30% and water usage by up to 40%, showing that production process efficiency is more determined by physical technology adoption than intellectual capital capabilities. The capital-intensive industry characteristics make investment in equipment and production technology the main determinant of green process innovation success. Second, environmentally friendly production processes such as emission reduction, waste treatment, and energy efficiency are often regulated by standards that have clear implementation guidelines. Septanti et al. ( 2024 ) on the manufacturing and mining industry sector in Indonesia found that companies with ISO 14001 certification can reduce greenhouse gas emissions by an average of 34% compared to companies without certification. Standardization through ISO 14001 provides a structured implementation framework, so the role of intellectual capital differentiation becomes less dominant. Companies can follow these certification guidelines without requiring different levels of intellectual capital to achieve similar results in green process innovation implementation. Third, the benefits of green process innovation are more direct and measurable, so the market can evaluate them without requiring reinforcement from intellectual capital. Handoko et al. ( 2021 ) found that manufacturing companies in Indonesia implementing green process innovation achieved average operational cost savings of 25% over a three-year period. Eviana et al. ( 2023 ) in their study of 45 manufacturing companies in Indonesia during 2018–2021 also confirmed that green process innovation implementation contributes to operational cost reductions of 12–18% in the long term. These measurable and direct cost savings enable investors and the market to evaluate the impact of green process innovation on firm value independently, without requiring additional consideration of the company's intellectual capital level. The capital-intensive characteristics of the basic materials and chemicals manufacturing industry provide additional explanation for this finding. Qureshi et al. ( 2020 ) revealed that the manufacturing sector is the largest energy consumer with a contribution of 36% of total global carbon dioxide (CO2) emissions. In this context, efforts to reduce environmental impact through green process innovation are more determined by investment in cleaner production technology and edge technology (Wang & Ahmad, 2024) compared to intellectual capital capabilities. Kraus et al. ( 2020 ) also identified that the main aspects of green process innovation such as hazardous emission reduction, waste recycling, resource use efficiency, and raw material optimization are more technical-operational in nature and can be achieved through standard technology adoption. Based on the above analysis, it can be concluded that intellectual capital does not moderate the relationship between green process innovation and firm value in the basic materials and chemicals manufacturing industry in Indonesia. The insignificance of this moderating effect can be explained by the characteristics of green process innovation which are more technical, standardized, and regulation-bound (such as ISO 14001), so that its implementation depends less on intellectual capital differentiation among companies. The direct benefits of green process innovation in the form of cost efficiency and regulatory compliance can be evaluated by the market independently without requiring reinforcement from intellectual capital. This finding provides implications that in the context of capital-intensive industries, companies need to prioritize investment in technology and physical infrastructure to optimize the impact of green process innovation on firm value. 3.6.4 Intellectual Capital Moderates the Relationship Between Green Product Innovation and Firm Value Research results show that intellectual capital plays a significant positive moderating role in strengthening the relationship between green product innovation and firm value in the basic materials and chemicals manufacturing industry in Indonesia. The full model shows that after controlling for other factors such as firm age, size, and leverage, the role of intellectual capital in strengthening the relationship between green product innovation and firm value becomes more prominent. Therefore, the hypothesis stating that intellectual capital moderates the relationship between green product innovation and firm value is accepted. The robustness of these research findings is confirmed through various additional tests. Testing with Price to Book Value (PBV) as an alternative measure of firm value shows a stronger moderating effect. The interaction coefficient in the PBV model, which is more than three times larger compared to the Tobin's Q model, indicates that the role of intellectual capital in strengthening the relationship between green product innovation and firm value is more prominent when measured with PBV. The consistency of results across various model specifications and estimation methods strengthens the validity of the conclusion that intellectual capital plays a positive moderating role in the relationship between green product innovation and firm value. Intellectual capital in this study is measured using the Value Added Intellectual Coefficient (VAIC), which is a combination of three efficiency components (Acuña-Opazo & González, 2021). The first component is human capital, which reflects employee knowledge and expertise in sustainable product design. The second component is structural capital, which includes R&D systems, innovation management, and organizational culture supporting green innovation. The third component is relational capital, which encompasses collaboration with environmentally friendly raw material suppliers, understanding of consumer preferences, and relationships with various stakeholders. These three components synergistically increase the effectiveness of developing and commercializing innovative green products. The Resource-Based View (RBV) Theory perspective explains that intellectual capital strengthens the effect of green product innovation on firm value through enhancing product innovation capabilities that meet VRIO criteria. Strong human capital, characterized by technical expertise and knowledge about sustainable product design, enables companies to be more effective in developing innovative environmentally friendly products that align with market demand. Permana et al. (2021) in their research on the manufacturing industry in Indonesia confirmed that green product innovation that is valuable, rare, inimitable, and organized has positive effects on innovation performance and company profitability. Robust structural capital, such as integrated environmental management systems and organizational culture supporting green innovation, accelerates the process of developing and launching new products. Strong relational capital, including close collaboration with environmentally friendly raw material suppliers and deep understanding of customer preferences, contributes to the successful commercialization of green products. Similar findings were also revealed by Rachmawati et al. (2020) in the context of manufacturing companies in Indonesia that intellectual capital plays a catalytic role in optimizing the impact of green innovation on company competitiveness. The three intellectual capital components collectively strengthen company capabilities in developing environmentally friendly products that are valuable, rare, difficult to imitate, and well-organized. Stakeholder Theory provides a complementary explanation of the moderating role of intellectual capital in the relationship between green product innovation and firm value. Human capital helps companies understand and anticipate stakeholder needs for environmentally friendly products. Structural capital provides effective stakeholder relationship management systems in the context of green product development. Relational capital facilitates engagement and collaboration with various stakeholders, such as customers, environmental NGOs, and regulators, in the product innovation process. Jakhar et al. (2018) on manufacturing companies in India revealed that green innovation adoption helps companies meet pressure from various stakeholders, thereby increasing company reputation and value. Effective stakeholder management through intellectual capital ultimately increases acceptance and legitimacy of green products in the market, thereby strengthening the impact of green product innovation on firm value. Erlinda et al. (2022) on the palm oil industry in Indonesia confirmed that green innovation practices meeting multi-stakeholder expectations have positive effects on company legitimacy and sustainability performance. Yucha et al. ( 2024 ) also identified a positive and significant relationship between green product innovation and repeat purchases, indicating that deep understanding of consumer preferences (part of relational capital) contributes to the successful commercialization of green products and increased customer loyalty. Strong empirical evidence regarding the moderating role of intellectual capital is provided by Zhang and Liu ( 2022 ), who found that companies with strong intellectual capital have a 40% higher success rate in implementing green innovation compared to companies with weak intellectual capital. A comprehensive study by Tram and Ngoc (2024) on the manufacturing industry in ASEAN also revealed that intellectual capital plays a catalytic role in strengthening the relationship between green innovation and firm value, with a significant moderating effect at a 95% confidence level. These findings confirm that intellectual capital is a critical factor determining the extent to which green product innovation can be transformed into increased firm value. The significant moderating effect of intellectual capital on the relationship between green product innovation and firm value can be explained by the characteristics of green product innovation that require creativity, market knowledge, and high product development capabilities. Unlike green process innovation, which is more technical and standardized, green product innovation requires deep understanding of sustainable market trends, environmentally conscious consumer preferences, and the ability to design products that meet environmental standards while maintaining product quality and attractiveness. Xie et al. ( 2019 ) identified several green product innovation indicators that require strong intellectual capital capabilities, namely: product design changes to prevent pollution, development of environmentally friendly packaging, and design modifications for energy efficiency during use. Investors provide higher premiums to company equity that can combine green product innovation with strong intellectual capital. He et al. ( 2022 ) revealed that institutional investors increasingly prioritize companies with strong green innovation practices. Kim et al. ( 2023 ) also found that companies with strong green innovation practices have better access to sustainable financing, with average capital costs 1.5% lower compared to conventional companies. These findings indicate that the market appreciates the synergy between green product innovation and intellectual capital, which is reflected in higher company valuations. The integration of Resource-Based View Theory and Stakeholder Theory explains the moderating mechanism of intellectual capital through two main pathways. First, through the RBV pathway, intellectual capital strengthens company capabilities in developing environmentally friendly products that meet VRIO criteria, thereby creating stronger and more sustainable competitive advantages. Second, through the Stakeholder Theory pathway, intellectual capital facilitates more effective stakeholder management, increases the legitimacy of green products in the market, and strengthens relationships with various stakeholders. Agustia et al. ( 2019 ) found that companies adopting green innovation successfully reduce production costs and increase economic efficiency, with intellectual capital playing a role in optimizing the transformation process. Based on this analysis, it can be concluded that intellectual capital is proven to significantly moderate the relationship between green product innovation and firm value in the basic materials and chemicals manufacturing industry in Indonesia. Companies with strong intellectual capital, including human capital, structural capital, and relational capital, are proven to be more effective in developing and commercializing innovative environmentally friendly products, thereby strengthening the positive impact of green product innovation on firm value. This finding is supported by strong theoretical foundations from Resource-Based View Theory and Stakeholder Theory, and confirmed by various empirical evidence from previous research (Zhang & Liu, 2022 ; Tram & Ngoc, 2024; Delgado-Verde et al., 2016; Rachmawati et al., 2020; Permana et al., 2021). The strategic implication of this finding is that basic materials and chemicals manufacturing companies in Indonesia need to develop intellectual capital in parallel with investments in green product innovation to optimize sustainable firm value creation. 4. CONCLUSION This research provides comprehensive evidence that green innovation, encompassing both green process innovation and green product innovation, serves as an effective strategy for enhancing firm value in Indonesia's basic materials and chemicals manufacturing industry. The findings confirm that green process innovation exerts a more substantial impact on firm value compared to green product innovation, primarily through direct operational cost savings, regulatory compliance, and enhanced stakeholder legitimacy. However, the moderating role of intellectual capital proves to be selective and context-dependent. While intellectual capital significantly strengthens the relationship between green product innovation and firm value through enhanced capabilities in product development, market understanding, and stakeholder management, it does not moderate the relationship between green process innovation and firm value due to the technical, standardized, and regulation-bound nature of process innovations. These findings, validated through multiple robustness tests across different measurement proxies (Tobin's Q and PBV) and estimation methods (OLS and GLS), provide robust empirical evidence supporting the integration of Resource-Based View Theory and Stakeholder Theory in explaining green innovation's value creation mechanisms. The practical implications of this research are substantial for manufacturing companies, policymakers, and investors in Indonesia. Companies should prioritize investments in green process innovation while simultaneously developing intellectual capital capabilities to maximize the benefits of green product innovation. For policymakers, these findings underscore the importance of creating supportive regulatory frameworks and incentives that encourage both dimensions of green innovation, particularly in light of Indonesia's commitment to the Paris Agreement for reducing greenhouse gas emissions by 29% by 2030. The acceleration of green innovation adoption is not merely an environmental imperative but a strategic necessity for maintaining competitiveness in global markets increasingly dominated by sustainability considerations. Future research should address the limitations of this study by expanding the sample to other manufacturing sectors, employing alternative measurement approaches such as patent data, extending the observation period beyond the COVID-19 pandemic era, and exploring additional moderating variables that may influence the green innovation-firm value relationship in developing country contexts. Declarations Acknowledgments : Thank to Universitas Pembangunan Nasional Veteran Jawa Timur and INTI International University as the funders for this research. Ethical Approval Not applicable. Consent to Participate Not applicable. Consent to Publish Not applicable. Declaration of conflicting interest : The authors declare that they have no competing financial interests or personal relationships that could have influenced the work reported in this paper. Funding Statement : This research is funded by Universitas Pembangunan Nasional Veteran Jawa Timur and INTI International University, Research Grants No. SPP/70/UN.63.8/LT/V/2025. Data availability statement : The data processed and analyzed in this article are available from the author upon reasonable request. References Agustia D, Sawarjuwono T, Dianawati W. The mediating effect of environmental management accounting on green innovation: firm value relationship. Int J Energy Econ Policy. 2019;9(2):299–306. ttps://doi.org/10.32479/ijeep.7438. Anugrah N. (2022, 29 Juli). Gakkum KLHK Tahan Dua Tersangka Kasus Dumping Limbah B3 dan Pembukaan Kebun Sawit Ilegal. Diakses pada 17 November 2024 dari https://ppid.menlhk.go.id/berita/siaran-pers/6639/gakkum-klhk-tahan-dua-tersangka-kasus-dumping-limbah-b3-dan-pembukaan-kebun-sawit-ilegal Ariefana P. (2022, 19 Mei). Gawat Limbah B3 Dibuang ke Kawasan Perhutanan Sosial Cibenda Karawang, Hewan Ternak Mati, Kesehatan Warga Terancam. Diakses pada 17 Oktober 2024 dari https://www.suara.com/news/2022/05/19/150921/gawat-limbah-b3-dibuang-ke-kawasan-perhutanan-sosial-cibenda-karawang-hewan-ternak-mati-kesehatan-warga-terancam Chen M, Matousek R. Do productive firms get external finance? Evidence from Chinese listed manufacturing firms. Int Rev Financial Anal. 2020;67:101422. ttps://doi.org/10.1016/j.irfa.2019.101422. Dewi R, Rahmianingsih A. (2020). Meningkatkan nilai perusahaan melalui green innovation dan eco-effisiensi. Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan, dan Akuntansi, 12 (2), 225–243. ttps://doi.org/10.35313/ekspansi.v12i2.2241 Eviana E, Violinda Q, Indiworo HE. (2023). Analisis Manajemen Laba Pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2018–2021 (Studi pada Perusahaan Manufaktur yang Terdaftar di BEI tahun 2018–2021). Jurnal Ilmiah Manajemen, Bisnis Dan Kewirausahaan , 3 (1), 72–81. ttps://doi.org/10.55606/jurimbik.v3i1.367 Fama EF, French KR. The cross-section of expected stock returns. J Finance. 1992;47(2):427–65. ttps://doi.org/10.1111/j.1540-6261.1992.tb04398.x. Fan Y, Usman M, Wen Y, Poulová P. Unraveling the nexus between fiscal decentralization, innovation, and sustainable economic performance in China. Technol Forecast Soc Chang. 2024;199:123082. ttps://doi.org/10.1016/j.techfore.2024.123082. Hadi DW. (2019, 12 Desember). Indonesia Tagih Komitmen Negara Maju Terhadap Perjanjian Paris. Diakses pada 17 November 2024 dari https://ppid.menlhk.go.id/berita/siaran-pers/5212/indonesia-tagih-komitmen-negara-maju-terhadap-perjanjian-paris Handoko F, Paula C, Hidayat S, Rastini EK, Wijayaningtyas M, Vitasari P. A green-based manufacturing system to solve pallet shortage problems. Heliyon. 2021;7(4). ttps://doi.org/10.1016/j.heliyon.2021.e06823. He F, Yan Y, Hao J, Wu JG. Retail investor attention and corporate green innovation: Evidence from China. Energy Econ. 2022;115:106308. ttps://doi.org/10.1016/j.eneco.2022.106308. Huang JW, Li YH. Green innovation and performance: The view of organizational capability and social reciprocity. J Bus Ethics. 2017;145:309–24. ttps://doi.org/10.1007/s10551-015-2903-y. Tram HM, N., Hoang Ngoc B. Environmental Foe or Friend: The Impact of Intellectual Capital and Ambidextrous Innovation on Environmental Performance. Sage Open. 2024;14(2). ttps://doi.org/10.1177/21582440241256768. Ioannidis JP, Stanley TD, Doucouliagos H. The power of bias in economics research. Econ J. 2017;127(605):F236–65. ttps://doi.org/10.1111/ecoj.12461. Joharsono YM. (2024, 20 Januari). Gangguan Pabrik Chandra Asri, Polusi Pembakaran Gas Selimuti Langit Cilegon. Diakses pada 17 November 2024 dari https://www.tempo.co/ekonomi/gangguan-pabrik-chandra-asri-polusi-pembakaran-gas-selimuti-langit-cilegon-95737 Kim MS, Chang H, Zheng L, Yan Q, Pfleger BF, Klier J, Huber GW. A review of biodegradable plastics: chemistry, applications, properties, and future research needs. Chem Rev. 2023;123(16):9915–39. ttps://doi.org/10.1021/acs.chemrev.2c00876. Kraus S, Rehman SU, García FJS. Corporate social responsibility and environmental performance: the mediating role of environmental strategy and green innovation. Technol Forecast Soc Chang. 2020;160:120262. ttps://doi.org/10.1016/j.techfore.2020.120262. Lee-Makiyama H. The EU Green Deal and its industrial and political significance. ECIPE, European Centre for International Political Economy; 2021. Li W, Wang J, Chen R, Xi Y, Liu SQ, Wu F, Wu X. Innovation-driven industrial green development: The moderating role of regional factors. J Clean Prod. 2019;222:344–54. ttps://doi.org/10.1016/j.jclepro.2019.03.027. Madaleno M, Robaina M, Dias MF, Meireles M. Dimension effects in the relationship between eco-innovation and firm performance: A European comparison. Energy Rep. 2020;6:631–7. ttps://doi.org/10.1016/j.egyr.2019.09.038. Mollik S, Karim R, Sahabuddin M, Eneizan B. Industry 5.0 and the circular economy: A transformative nexus. J Clean Prod. 2024;412:137456. ttps://doi.org/10.1016/j.jclepro.2024.137456. Park S-J, Yi Y. Assessing moderator effects, main effects, and simple effects without collinearity problems in moderated regression models. J Bus Res. 2022;145:905–19. ttps://doi.org/10.1016/j.jbusres.2022.03.018. Putri A. (2022, 20 Oktober). Warga Kembali Menangkan Banding atas Gugatan Polusi Udara. Diakses pada 17 Oktober 2024 dari https://bantuanhukum.or.id/warga-kembali-menangkan-banding-atas-gugatan-polusi-udara/ Qureshi MI, Khan N, Qayyum S, Malik S, Hishan SS, Ramayah T. Classifications of sustainable manufacturing practices in ASEAN region: A systematic review and bibliometric analysis of the past decade of research. Sustainability. 2020;12(21):8950. ttps://doi.org/10.3390/su12218950. Septanti EM, Joko T, Setiani O. Faktor-Faktor Yang Mempengaruhi Penerapan Sistem Manajemen Lingkungan ISO 14001. PREPOTIF: Jurnal Kesehatan Masyarakat. 2024;8(2):4041–51. ttps://doi.org/10.31004/prepotif.v8i2.30934. Singh C, Singh D, Khamba JS. Analyzing barriers of Green Lean practices in manufacturing industries by DEMATEL approach. J Manuf Technol Manage. 2021;32(1):176–98. ttps://doi.org/10.1108/JMTM-02-2020-0053. Wang R, Mirza N, Vasbieva DG, Abbas Q, Xiong D. The nexus of carbon emissions, financial development, renewable energy consumption, and technological innovation: what should be the priorities in light of COP 21 Agreements? J Environ Manage. 2020;271:111027. ttps://doi.org/10.1016/j.jenvman.2020.111027. Wooldridge JM. Econometric analysis of cross section and panel data. 2nd ed. MIT Press; 2010. Xie X, Huo J, Zou H. Green process innovation, green product innovation, and corporate financial performance: A content analysis method. J Bus Res. 2019;101:697–706. ttps://doi.org/10.1016/j.jbusres.2019.01.010. Yao Q, Zeng S, Sheng S, Gong S. Green innovation and brand equity: Moderating effects of industrial institutions. Asia Pac J Manage. 2021;38(2):573–602. ttps://doi.org/10.1007/s10490-019-09664-2. Yucha N, Arif D, Sevana BC. Perilaku Konsumen Terkait Loyalitas Pelanggan. CV. Intelektual Manifes Media; 2024. Zhang M, Liu Y. Influence of digital finance and green technology innovation on China's carbon emission efficiency: empirical analysis based on spatial metrology. Sci Total Environ. 2022;838:156463. ttps://doi.org/10.1016/j.scitotenv.2022.156463. Zhang C, Ma Y, Zhang E. Does green innovation promote financial performance of Chinese listed companies? J Innov Knowl. 2025;10(4):100740. ttps://doi.org/10.1016/j.jik.2025.100740. Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Revision Version 1 posted Editorial decision: Revision requested 05 May, 2026 Reviews received at journal 03 May, 2026 Reviewers agreed at journal 01 May, 2026 Reviewers agreed at journal 30 Apr, 2026 Reviewers agreed at journal 30 Apr, 2026 Reviewers agreed at journal 29 Apr, 2026 Reviews received at journal 28 Apr, 2026 Reviewers agreed at journal 28 Apr, 2026 Reviews received at journal 15 Apr, 2026 Reviewers agreed at journal 07 Apr, 2026 Reviews received at journal 29 Mar, 2026 Reviewers agreed at journal 28 Mar, 2026 Reviewers invited by journal 20 Mar, 2026 Editor assigned by journal 19 Mar, 2026 Editor invited by journal 18 Mar, 2026 Submission checks completed at journal 13 Mar, 2026 First submitted to journal 12 Mar, 2026 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-9042550","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":609384244,"identity":"7e69dbd7-d34d-4554-b2c0-3bf19638ac1d","order_by":0,"name":"Dwi Suhartini","email":"data:image/png;base64,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","orcid":"","institution":"Universitas Pembangunan Veteran Jawa Timur","correspondingAuthor":true,"prefix":"","firstName":"Dwi","middleName":"","lastName":"Suhartini","suffix":""},{"id":609384245,"identity":"c461b576-3525-4c4a-b646-e1abd7620750","order_by":1,"name":"Ria Sandra Alimbudiono","email":"","orcid":"","institution":"Universitas Surabaya","correspondingAuthor":false,"prefix":"","firstName":"Ria","middleName":"Sandra","lastName":"Alimbudiono","suffix":""},{"id":609384246,"identity":"199ac444-784a-4091-8321-77cd39097a83","order_by":2,"name":"Tri Kartika Pertiwi","email":"","orcid":"","institution":"Universitas Surabaya","correspondingAuthor":false,"prefix":"","firstName":"Tri","middleName":"Kartika","lastName":"Pertiwi","suffix":""},{"id":609384249,"identity":"76de74e7-9b99-42a8-9267-ca0f2bb479ea","order_by":3,"name":"Deshinta Arrova Dewi","email":"","orcid":"","institution":"INTI International University","correspondingAuthor":false,"prefix":"","firstName":"Deshinta","middleName":"Arrova","lastName":"Dewi","suffix":""}],"badges":[],"createdAt":"2026-03-05 16:38:17","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-9042550/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-9042550/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":105308449,"identity":"1dd44c38-c705-4787-a2b2-ea13d2950c98","added_by":"auto","created_at":"2026-03-24 14:57:24","extension":"png","order_by":1,"title":"Figure 1","display":"","copyAsset":false,"role":"figure","size":91695,"visible":true,"origin":"","legend":"\u003cp\u003eResearch Conceptual Model\u003c/p\u003e","description":"","filename":"1.png","url":"https://assets-eu.researchsquare.com/files/rs-9042550/v1/d3f97557aad5ae1db145c550.png"},{"id":105308671,"identity":"81258398-e01d-4e7c-95fd-08abbbb4e240","added_by":"auto","created_at":"2026-03-24 14:58:12","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1819127,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-9042550/v1/4a69972a-ed3d-4913-9e07-149edac032c0.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"The Effect of Green Innovation on Firm Value Moderated by Intellectual Capital in Indonesian Basic Materials and Chemical Industry","fulltext":[{"header":"1. INTRODUCTION","content":"\u003cdiv id=\"Sec2\" class=\"Section2\"\u003e \u003ch2\u003e1.1 Research Background\u003c/h2\u003e \u003cp\u003eIn an increasingly complex industrial landscape, green innovation has become a primary strategy for manufacturing companies, particularly in the basic materials and chemical industries sector in Indonesia. The transition toward sustainable industrial systems has accelerated globally under the Industry 5.0 paradigm, where circular economy principles and environmentally responsible innovation are becoming central to long-term value creation (Mollik et al., \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). Global climate change has served as a major catalyst in driving industrial transformation toward more sustainable practices. Indonesia's commitment in the Paris Agreement to reduce greenhouse gas emissions by 29% by 2030 has placed significant pressure on the industrial sector to adapt and innovate (Hadi, \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). This is reinforced by a series of environmental cases involving basic materials and chemical manufacturing industries in Indonesia during the 2018\u0026ndash;2023 period, which highlighted serious consequences of unsustainable industrial practices.\u003c/p\u003e \u003cp\u003eThe Jakarta Bay pollution case in 2018\u0026ndash;2019, for instance, revealed the significant contribution of chemical sector manufacturing companies in damaging aquatic environments (Anugrah, \u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). This incident not only resulted in administrative sanctions but also triggered strong public pressure on the industry to adopt more sophisticated waste treatment technologies. Similarly, the gas leak at a Cilegon petrochemical plant in 2020 demonstrated the urgency of innovation in security systems and safer production processes (Joharsono, \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). Additionally, the class action lawsuit related to Jakarta air pollution in 2021 (Putri, \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) and the illegal waste disposal scandal in Karawang in 2022 (Ariefana, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) further emphasized the importance of better emission control and waste management. These cases not only increased regulatory and reputational risks for companies but also prompted comprehensive evaluation of industrial operational practices.\u003c/p\u003e \u003cp\u003eThe manufacturing sector has a significant impact on the environment, particularly in energy consumption and waste management. Qureshi et al. (\u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) revealed that this sector is the largest energy consumer, with data from the International Energy Agency showing a contribution of 36% of total global carbon dioxide (CO2) emissions. Furthermore, Agustia et al. (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) emphasized that rapid industrial development is directly proportional to increased pollution, not only air but also water at alarming levels, contributing to global warming.\u003c/p\u003e \u003cp\u003eLi et al. (2020) defined green innovation as efforts to minimize energy use, reduce raw materials, and prevent pollution during production processes while prioritizing sustainable and environmentally friendly product attributes. According to Xie et al. (\u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) and Yao et al. (\u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), green innovation is divided into two main components: green product innovation and green process innovation. Green product innovation focuses on product modification using environmentally friendly materials to minimize ecosystem impact. Meanwhile, green process innovation emphasizes renewal and development of company production systems by utilizing current technology. Both components play important roles in industrial transformation toward more sustainable business practices.\u003c/p\u003e \u003cp\u003eRegulatory and global market pressures have also become major drivers of green innovation adoption. Research by Lee-Makiyama (\u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) shows that the implementation of the Carbon Border Adjustment Mechanism (CBAM) by the European Union could potentially affect 35% of manufacturing exports from developing countries, including Indonesia. Meanwhile, a study by He et al. (\u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) revealed that institutional investors increasingly prioritize companies with strong green innovation practices.\u003c/p\u003e \u003cp\u003eThe effectiveness of green innovation in improving operational efficiency is supported by Wang et al.'s (\u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) research in Asia, showing that clean production technology implementation can reduce energy consumption by up to 30% and water usage by up to 40%. In Indonesia, research by Handoko et al. (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) found that manufacturing companies implementing green process innovation achieved average operational cost savings of 25% over a three-year period.\u003c/p\u003e \u003cp\u003eHowever, green innovation implementation also presents significant challenges for companies. Agustia et al. (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) highlighted that developing environmentally friendly processes and products requires substantial investment. Madaleno et al. (\u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) even found negative impacts of environmentally friendly innovation on company performance due to increased costs that must be borne during the innovation adoption process. In line with these findings, challenges in green innovation implementation include high initial investment, uncertainty of short-term economic returns, and resistance to change that need to be overcome. This is where the role of intellectual capital becomes crucial. A company's capacity to develop, adopt, and manage green innovation heavily depends on the quality of human resources, organizational structure, and external relationships it possesses.\u003c/p\u003e \u003cp\u003eThis research aims to explore the complex relationship between green innovation, intellectual capital, and firm value in the context of the basic materials and chemical manufacturing industry in Indonesia, focusing on the 2019\u0026ndash;2023 period. The urgency of this research is supported by various empirical studies showing the strategic role of green innovation in improving company performance and value. Chen et al. (2020) stated that manufacturing industries in China implementing green innovation experienced significant increases in financial performance, with an average Return on Assets (ROA) 15% higher compared to companies not implementing green innovation. In line with this, a longitudinal study by Singh et al. (\u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) on 300 manufacturing companies in Southeast Asia showed that investment in green product innovation positively correlates with increased company market value, measured through Tobin's Q.\u003c/p\u003e \u003cp\u003eThe role of intellectual capital in strengthening the impact of green innovation has been validated by several recent studies. Zhang and Liu (\u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) found that companies with strong intellectual capital have a 40% higher success rate in implementing green innovation compared to companies with weak intellectual capital. A comprehensive study by Tram and Ngoc (2024) on the manufacturing industry in ASEAN revealed that intellectual capital acts as a catalyst that strengthens the relationship between green innovation and firm value, with significant moderation effects at a 95% confidence level.\u003c/p\u003e \u003cp\u003eThis series of empirical evidence strengthens the argument that green innovation is not only a response to regulatory and social pressures but also a business strategy that can substantially increase firm value. Prior studies confirm that sustainability-oriented innovation significantly enhances economic and performance outcomes, reinforcing its strategic role in value creation (Fan et al., \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). However, research gaps still exist in Indonesia's specific context, particularly regarding the moderating role of intellectual capital in the relationship between green innovation and firm value in the basic materials and chemical industries sector. This research aims to fill that gap and provide new insights that can benefit business practitioners and policymakers in Indonesia.\u003c/p\u003e \u003cp\u003eThis research is based on two main theories: Resource-Based View Theory (RBV) and Stakeholder Theory, which provide a comprehensive framework for understanding the relationship between green innovation, intellectual capital, and firm value in the context of Indonesia's basic materials and chemical manufacturing industry.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec3\" class=\"Section2\"\u003e \u003ch2\u003e1.2 Hypothesis Development\u003c/h2\u003e \u003cp\u003eGreen process innovation refers to the renewal and development of company production systems by utilizing current environmentally friendly technology. Implementation of this strategy can improve operational efficiency through reduction of energy, water, and raw material consumption, as well as minimize waste. From the Resource-Based View (RBV) perspective, green process innovation can become a source of sustainable competitive advantage for companies because it meets VRIO criteria (Valuable, Rare, Inimitable, Organized). The complexity of clean production technology that has not been widely adopted in Indonesia's manufacturing industry makes it a rare resource.\u003c/p\u003e \u003cp\u003eThrough Stakeholder Theory, implementation of green process innovation also helps companies meet various stakeholders' expectations for cleaner and more environmentally friendly production practices, subsequently increasing company reputation and legitimacy, ultimately contributing positively to firm value.\u003c/p\u003e \u003cp\u003eVarious empirical studies support the statement that green process innovation positively influences firm value. Wang et al.'s (\u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) research in Asia shows clean production technology implementation can reduce energy consumption by up to 30% and water usage by up to 40%. In Indonesia, Handoko et al.'s (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) research found that manufacturing companies implementing green process innovation achieved average operational cost savings of 25% over a three-year period. These cost savings can in turn increase profitability and firm value.\u003c/p\u003e \u003cp\u003eTherefore, based on strong theoretical arguments from RBV and Stakeholder Theory, as well as empirical evidence support from various previous studies, it can be hypothesized that green process innovation has a positive influence on the value of basic materials and chemical manufacturing companies in Indonesia. Companies that successfully implement green process innovation are predicted to enjoy increased efficiency, reduced costs, better reputation, and higher market value compared to companies not implementing environmentally friendly process innovation.\u003c/p\u003e \u003cp\u003e \u003cb\u003eH1. Green process innovation has a positive influence on firm value.\u003c/b\u003e \u003c/p\u003e \u003cp\u003eGreen product innovation focuses on modification and development of products using environmentally friendly materials to minimize negative impacts on ecosystems. Implementation of this strategy can access market segments that care about the environment and meet consumer preferences that increasingly appreciate sustainable products. This has the potential to increase company revenue through product differentiation and new market penetration.\u003c/p\u003e \u003cp\u003eResource-Based View (RBV) provides theoretical foundation that green product innovation can become a source of company competitive advantage. The complexity in designing products that meet environmental standards while maintaining quality and cost efficiency makes it a capability that is still rare and difficult to imitate in the industry. Cross-departmental coordination and well-organized product management systems are needed for effective green product innovation implementation.\u003c/p\u003e \u003cp\u003eStakeholder theory strengthens the argument that green product innovation contributes to increased firm value through fulfillment of stakeholder expectations. Development of environmentally friendly products responds to the demands of increasingly environmentally conscious consumers. Fulfillment of these expectations can increase company reputation and strengthen relationships with various stakeholders, ultimately having a positive impact on firm value.\u003c/p\u003e \u003cp\u003eSingh et al.'s (\u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) longitudinal study on 300 manufacturing companies in Southeast Asia shows investment in green product innovation positively correlates with increased company market value, measured through Tobin's Q. Yucha et al. (\u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) identified a positive and significant relationship between green product innovation and repeat purchases, meaning the more intensive the implementation of green product innovation, the higher the level of repeat purchases achieved by the company.\u003c/p\u003e \u003cp\u003eTherefore, based on the RBV and Stakeholder Theory theoretical framework, and supported by empirical findings, it can be hypothesized that green product innovation has a positive influence on the value of basic materials and chemical manufacturing companies in Indonesia. Companies that successfully develop and market innovative environmentally friendly products are predicted to increase market share, stronger reputation, and higher firm value appreciation from investors.\u003c/p\u003e \u003cp\u003e \u003cb\u003eH2. Green product innovation has a positive influence on firm value.\u003c/b\u003e \u003c/p\u003e \u003cp\u003eIntellectual capital plays an important role in strengthening the positive influence of green process innovation on firm value. The three components of intellectual capital - human capital (employee expertise and knowledge in environmentally friendly process technology), structural capital (infrastructure, systems, and organizational culture supporting sustainable process innovation), and relational capital (network of relationships with stakeholders such as green technology suppliers, regulators, and communities) - synergistically increase company capability in effectively implementing environmentally friendly production process innovation.\u003c/p\u003e \u003cp\u003eResource-Based View (RBV) provides the theoretical framework underlying the moderation effect of intellectual capital. Human capital with high technical competence in green process technology can optimize energy efficiency, minimize waste, and reduce carbon footprint in production processes. Strong structural capital can accelerate adoption and implementation of environmentally friendly manufacturing practices. Relational capital can expand company access to resources and knowledge needed for successful green process innovation implementation.\u003c/p\u003e \u003cp\u003eStakeholder theory explains the theoretical framework that intellectual capital strengthens the impact of green process innovation on firm value through fulfillment of stakeholder expectations. Competent human capital helps companies design production processes expected by customers and regulators. Conducive structural capital facilitates companies in managing and responding to stakeholder demands for responsible manufacturing practices. Relational capital facilitates involvement and proactive communication with various stakeholders in increasing company transparency and accountability in green process innovation implementation.\u003c/p\u003e \u003cp\u003eEmpirical evidence from various recent studies confirms the moderating role of intellectual capital. Septanti et al. (\u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) in the manufacturing and mining industry sector in Indonesia found that companies with strong intellectual capital, marked by ISO 14001 certification, have much higher success rates in reducing greenhouse gas emissions through environmentally friendly process innovation. Eviana et al.'s (\u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) study revealed that intensive collaboration with green technology suppliers (relational capital) and effective knowledge management systems (structural capital) strengthen the positive impact of green process innovation implementation on operational performance and market value of manufacturing companies in Indonesia.\u003c/p\u003e \u003cp\u003eBased on Resource-Based View and Stakeholder Theory theoretical foundation, and reinforced by relevant empirical findings, it can be hypothesized that Intellectual Capital moderates the positive influence of Green Process Innovation on Firm Value of basic materials and chemical manufacturing companies in Indonesia. Companies with strong intellectual capital in all three dimensions (human, structural, relational) are predicted to be more successful in implementing environmentally friendly production process innovation, thereby strengthening its positive impact on operational efficiency, company reputation, and ultimately firm value.\u003c/p\u003e \u003cp\u003e \u003cb\u003eH3. Intellectual Capital moderates the relationship between Green Process Innovation and Firm Value.\u003c/b\u003e \u003c/p\u003e \u003cp\u003eIntellectual Capital plays an important role in strengthening the positive influence of green product innovation on firm value. Intellectual capital collectively can increase company capability in developing innovative environmentally friendly products, subsequently meeting expectations of consumers who increasingly appreciate sustainable products.\u003c/p\u003e \u003cp\u003eResource-Based View provides theoretical foundation that intellectual capital can moderate the relationship between green product innovation and firm value. Technical expertise and knowledge about sustainable product design can develop innovative environmentally friendly products that match market demand. Integrated environmental management systems and organizational culture supporting green innovation can accelerate the process of developing and launching new products. Close collaboration with environmentally friendly raw material suppliers and deep understanding of customer preferences contribute to successful commercialization of green products.\u003c/p\u003e \u003cp\u003eStakeholder Theory strengthens the argument for the moderating role of intellectual capital. Human capital helps companies understand and anticipate stakeholder needs for environmentally friendly products. Structural capital provides effective stakeholder relationship management systems in the context of green product development. Relational capital facilitates involvement with various stakeholders. Effective stakeholder management ultimately increases acceptance and legitimacy of green products in the market, thereby strengthening the impact of green product innovation on firm value.\u003c/p\u003e \u003cp\u003eZhang and Liu (\u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) found companies with strong intellectual capital have a 40% higher success rate in implementing green innovation compared to companies with weak intellectual capital. Tram and Ngoc's (2024) study on the manufacturing industry in ASEAN revealed intellectual capital acts as a catalyst that strengthens the relationship between green innovation and firm value, with significant moderation effects at a 95% confidence level.\u003c/p\u003e \u003cp\u003eTherefore, based on Resource-Based View and Stakeholder Theory, and supported by relevant empirical findings, it can be hypothesized that Intellectual Capital moderates the positive influence of Green Product Innovation on Firm Value of basic materials and chemical manufacturing companies in Indonesia. Companies with strong intellectual capital, including human capital, structural capital, and relational capital, are predicted to be more effective in developing and commercializing innovative environmentally friendly products, thereby strengthening the positive impact of green product innovation on firm value.\u003c/p\u003e \u003cp\u003e \u003cb\u003eH4. Intellectual Capital moderates the relationship between Green Product Innovation and Firm Value.\u003c/b\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec4\" class=\"Section2\"\u003e \u003ch2\u003e1.3 Research Conceptual Model Figure\u003c/h2\u003e \u003cp\u003eBased on the literature review and hypothesis development outlined above, this research develops a conceptual model depicting the relationship between green innovation, intellectual capital, and firm value.\u003c/p\u003e \u003cp\u003eThis model also considers three control variables: firm age, firm size, and leverage. These control variables are included to isolate the specific influence of green innovation on firm value and increase research internal validity.\u003c/p\u003e \u003cp\u003e \u003c/p\u003e \u003c/div\u003e"},{"header":"2. METHODOLOGY","content":"\u003cdiv id=\"Sec6\" class=\"Section2\"\u003e \u003ch2\u003e2.1 Sample Method and Data Collection\u003c/h2\u003e \u003cp\u003eThe population in this research consists of all basic materials and chemical manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) during the 2019\u0026ndash;2023 period. The data used are financial reports, annual reports, and sustainability reports of sample companies during the 2019\u0026ndash;2023 period. The data collection method is documentation study and content analysis. The research population consists of basic materials and chemical manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023, totaling 73 companies. Sample determination uses purposive sampling technique.\u003c/p\u003e \u003cp\u003eThe sampling technique uses purposive sampling with criteria: (1) Basic materials and chemical manufacturing sector companies consistently listed on IDX during the 2019\u0026ndash;2023 period; (2) Basic materials and chemical manufacturing sector companies not experiencing losses; (3) Companies publishing complete financial reports and annual reports during the research period; (4) Companies disclosing information related to green innovation practices in sustainability reports, as follows:\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eSample Selection Criteria\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"3\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eNo.\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCriteria\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eNumbers\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eBasic materials and chemical manufacturing sector companies consistently listed on IDX during 2019\u0026ndash;2023 period\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e73\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eBasic materials and chemical manufacturing sector companies not experiencing losses\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e68\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCompanies publishing complete financial reports and annual reports during research period\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e37\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e4\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCompanies disclosing information related to green innovation practices in sustainability reports\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e33\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c2\" namest=\"c1\"\u003e \u003cp\u003e\u003cb\u003eTotal (Number of Samples \u0026times; Research Years)\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u003cb\u003e165 (33 x 5)\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec7\" class=\"Section2\"\u003e \u003ch2\u003e2.2 Variable Measurement\u003c/h2\u003e \u003cp\u003eThis research uses firm value as the dependent variable measured using Tobin's Q ratio, which shows financial market estimates regarding the return value of each investment. Firm value is considered good if it produces a Tobin's Q value greater than 1, indicating that profits from company assets exceed the investment value issued. Tobin's Q calculation is performed by adding market value (total outstanding shares multiplied by current share price) with total book value of liabilities, then dividing by total company assets.\u003c/p\u003e \u003cp\u003eGreen innovation refers to company participation in obtaining ISO 14001 certification, which is an international standard for environmental management. Independent variables include green product innovation and green process innovation. Green product innovation is measured through several indicators such as product design changes to prevent pollution or toxic components, improvement of environmentally friendly packaging, and design modifications for energy efficiency during use. Green process innovation is assessed through four main aspects: reduction of harmful emissions and waste, waste recycling, efficient use of resources (water, electricity, coal, and oil), and optimization of raw material use. Both green innovation variables use content analysis method with a 0\u0026ndash;2 assessment scale, where a score of 0 is given if the company does not disclose the intended item, a score of 1 if disclosed with simple description, and a score of 2 if disclosed with detailed description.\u003c/p\u003e \u003cp\u003eThe moderating variable intellectual capital is measured using Value Added Intellectual Coefficient (VAIC), which is a combination of three efficiency components: VACA (Value Added Capital Employed), VAHU (Value Added Human Capital), and STVA (Structural Capital Value Added). VACA is calculated by dividing value added by employed capital, VAHU is obtained from dividing value added by labor costs, while STVA is calculated by dividing structural capital by value added. Total VAIC is obtained from the sum of these three components. Value added itself is the difference between total sales and revenue with company expenses, excluding employee salary expenses. This research also includes three control variables: firm age, firm size, and leverage to reduce potential bias in estimation and increase research internal validity. Additionally, year dummy variables are used to control for time effects in panel data analysis for the 2019\u0026ndash;2023 period.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec8\" class=\"Section2\"\u003e \u003ch2\u003e2.3 Analysis Technique\u003c/h2\u003e \u003cp\u003eThis research uses a quantitative approach with causal design to test the influence of green product innovation and green process innovation on firm value, with intellectual capital as a moderating variable. Data analysis techniques use descriptive statistical testing and inferential statistics with STATA software assistance for data processing. The main analysis method used is Multiple Regression Analysis (MRA) with an interaction approach, performed by adding product variables between independent variables and moderating variables, namely GProdI \u0026times; IC and GProcI \u0026times; IC. To minimize potential multicollinearity, variables involved in interactions are first centered on the mean before forming interaction variables.\u003c/p\u003e \u003cp\u003eData analysis is conducted through a series of systematic and comprehensive stages. The first stage begins with descriptive statistical analysis to provide an overview of research data characteristics, including calculation of minimum, maximum, mean, and standard deviation values for all variables. Before hypothesis testing, a series of classical assumption tests are conducted to ensure the research model meets Best Linear Unbiased Estimator (BLUE) assumptions. After ensuring classical assumptions are met, analysis continues to moderation regression model testing conducted in two stages. The first stage focuses on analyzing the direct influence of green process innovation and green product innovation on firm value, considering control variables of firm age, firm size, and leverage. The second stage analyzes the moderation effect of intellectual capital through calculation and testing of interactions between independent variables and moderators. Result interpretation is conducted comprehensively by linking empirical findings to theoretical context and comparing them with previous research. All analysis stages are conducted using SPSS software with a 5% significance level, and analysis results are presented in tables and graphs accompanied by in-depth discussion.\u003c/p\u003e \u003cp\u003eTo ensure validity and consistency of research results, a series of robustness tests are conducted through two main approaches. First, using alternative measurements for the firm value dependent variable by using Price to Book Value (PBV) as an additional proxy besides Tobin's Q. PBV is calculated by dividing market price per share by book value per share, reflecting market assessment of company equity book value. If testing results with PBV show consistency in direction and significance with results using Tobin's Q, then research findings can be considered robust to changes in dependent variable measurement. Second, using alternative estimation methods through Generalized Least Squares (GLS) to address potential heteroscedasticity and autocorrelation problems that may not be fully addressed in the OLS model, especially considering the panel data structure in this research. GLS is a more efficient estimation technique in dealing with homoscedasticity assumption violations by giving different weights to observations based on their variance. This approach aligns with best practices in empirical research emphasizing the importance of testing result sensitivity to various model specifications (Ioannidis et al., \u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2017\u003c/span\u003e).\u003c/p\u003e \u003c/div\u003e"},{"header":"3. RESULTS","content":"\u003cdiv id=\"Sec10\" class=\"Section2\"\u003e \u003ch2\u003e3.1 Data Description\u003c/h2\u003e \u003cp\u003eDescriptive statistical analysis provides an overview of the characteristics of the data used. This study analyzes 165 observations from 33 manufacturing companies in the basic materials and chemicals sector listed on the Indonesia Stock Exchange during the 2019\u0026ndash;2023 period. The following table presents the results of the descriptive statistical analysis:\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab2\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 2\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eDescriptive Statistical Analysis Results\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"6\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eVariable\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eMean\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eStandard Deviation\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eMedian\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eMinimum\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eMaximum\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.323\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.664\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e1.500\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e2.000\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.014\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.670\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e1.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e2.000\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e4.705\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.471\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e4.783\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e3.264\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e5.668\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.225\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.144\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e1.216\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.888\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e1.588\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.559\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.330\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e1.508\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.645\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e2.378\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eAGE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e40.242\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e11.684\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e43.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e12.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e66.000\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSIZE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e29.104\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e1.641\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e28.743\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e26.164\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e32.683\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLEV\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.386\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.171\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.388\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.044\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.827\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"6\"\u003eSource: Data Processed with STATA, 2025\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eThe descriptive analysis reveals several important patterns in the data. The slightly higher implementation level of green product innovation (GprodI) compared to green process innovation (GprocI) indicates that companies tend to focus more on modifying final products rather than transforming production processes. The relatively homogeneous intellectual capital (IC) at good efficiency levels demonstrates companies' readiness to support green innovation implementation. Firm value (FV) on average exceeding the book value of assets (PBV) provides a positive indication that the market appreciates the performance and prospects of companies in this sector. The sample characteristics dominated by established companies with large size and moderate leverage demonstrate a strong foundation for adopting and developing sustainable green innovation practices.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab3\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 3\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003ePearson Correlation Matrix\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"9\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c9\" colnum=\"9\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eVariable\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eGProdI\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eGProcI\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eIC\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003eAGE\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c8\"\u003e \u003cp\u003eSIZE\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c9\"\u003e \u003cp\u003eLEV\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.438\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e1.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.474\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.484\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e1.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.502\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.758\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.578\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e1.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.610\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.510\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.441\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.586\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e1.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eAGE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.064\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.306\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.101\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.349\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.131\u003csup\u003e*\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e1.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(0.413)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(0.197)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(0.094)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSIZE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.344\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.585\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.237\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.382\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.136\u003csup\u003e*\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.408\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e1.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(0.002)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(0.082)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLEV\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.014\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.229\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.194\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.051\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.102\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.138\u003csup\u003e*\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e0.355\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e \u003cp\u003e1.000\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(0.861)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(0.003)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(0.013)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(0.518)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(0.192)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(0.078)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e(0.000)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"9\"\u003eSource: Data Processed with STATA, 2025\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eThe significant positive correlation between green process innovation (GprocI) and firm value (FV) (0.758) and green product innovation (GprodI) and firm value (FV) (0.502) supports Hypothesis 1 and Hypothesis 2, which state that green innovation positively influences firm value. The significant positive correlation between intellectual capital (IC) and both dimensions of green innovation as well as firm value (FV) provides initial indication that intellectual capital (IC) potentially moderates the relationship between green innovation and firm value (FV), as hypothesized in Hypothesis 3 and Hypothesis 4. When using Price to Book Value (PBV) as an alternative measure of firm value, green product innovation (GprodI) shows a higher correlation (0.610; p\u0026thinsp;\u0026lt;\u0026thinsp;0.01) compared to green process innovation (GprocI) (0.510; p\u0026thinsp;\u0026lt;\u0026thinsp;0.01). This difference is interesting as it indicates that both dimensions of green innovation have different influences on market perception depending on the valuation metric used. Control variables show varied correlation patterns, where firm size (SIZE) has positive correlations with almost all variables, while firm age (AGE) and leverage (LEV) show more selective relationships.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec11\" class=\"Section2\"\u003e \u003ch2\u003e3.2 Hypothesis Testing Results\u003c/h2\u003e \u003cp\u003eHypothesis testing in this study was conducted using the Ordinary Least Squares (OLS) method with a Moderated Regression Analysis (MRA) approach. Regression analysis was performed in stages to test the direct effects of green product innovation and green process innovation on firm value (H1 and H2), as well as to test the moderating effects of intellectual capital on these relationships (H3 and H4). The regression models use Tobin's Q as the primary measure of firm value with control variables including firm age, firm size, and leverage, as well as year dummies to control for time effects. The following is a summary of the hypothesis testing results:\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab4\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 4\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eHypothesis Testing Results with Tobin's Q\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"7\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eVariable\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(1)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(2)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(3)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(4)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(5)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(6)\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.043\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.027\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.037\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.055\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.037\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.051\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(3.53)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(2.17)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(3.21)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(4.50)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(2.89)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(4.74)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.143\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.127\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.133\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.155\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.135\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.149\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(11.15)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(9.74)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(10.66)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(11.08)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(9.42)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(11.61)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.069\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.082\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.073\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.086\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(3.66)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(4.86)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(3.70)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(5.04)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI*IC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.078\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.109\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(2.94)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(4.30)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI*IC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.038\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.022\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(1.31)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(0.83)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eAGE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.002\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.002\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.003\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(3.85)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(4.10)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(5.51)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSIZE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.016\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.012\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-0.018\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(-2.71)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(-2.15)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(-3.85)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLEV\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.069\u003csup\u003e*\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.102\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-0.097\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(-1.77)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(-2.54)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(-2.77)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e_cons\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.016\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.732\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.621\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e1.384\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.995\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e1.030\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(60.00)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(9.00)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(8.38)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(9.05)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(5.24)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(6.60)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eYear FE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003er2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.622\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.655\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.704\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.668\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.704\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.769\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003er2_a\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.607\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.640\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.687\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.649\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.685\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.751\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cem\u003eN\u003c/em\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003e\u003cem\u003et\u003c/em\u003e statistics in parentheses\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003e\u003csup\u003e*\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.1, \u003csup\u003e**\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.05, \u003csup\u003e***\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.01\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003eSource: Data Processed with STATA, 2025\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec12\" class=\"Section2\"\u003e \u003ch2\u003e3.3 Robustness Test: Hypothesis Testing With Price to Book Value (PBV)\u003c/h2\u003e \u003cp\u003eTo ensure the validity and consistency of research findings, a robustness test was conducted by replacing the firm value measurement indicator from Tobin's Q to Price to Book Value (PBV). PBV is a ratio that measures the market's valuation of a company's book value of equity, calculated by dividing the market price per share by the book value per share. Using PBV as an alternative measure allows this study to confirm whether the relationships among green innovation, intellectual capital, and firm value are consistent across different valuation metrics. The following are the hypothesis testing results using PBV as the dependent variable:\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab5\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 5\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eHypothesis Testing Results with Price to Book Value (PBV)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"7\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(1)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(2)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(3)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(4)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(5)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(6)\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.233\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.217\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.242\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.235\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.218\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.261\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(6.78)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(6.22)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(8.18)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(6.74)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(6.28)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(9.56)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.147\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.130\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.157\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.254\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.236\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.282\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(4.58)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(3.96)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(5.09)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(7.47)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(6.97)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(10.39)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.071\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.114\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.068\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.109\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(1.34)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(2.61)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(1.29)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(2.90)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI*IC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.325\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.340\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(4.93)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(5.83)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI*IC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.045\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.072\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(0.61)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(1.23)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eAGE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.006\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.006\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-0.005\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(-3.52)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(-3.44)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(-3.22)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSIZE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.039\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.035\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-0.054\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(-2.61)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(-2.43)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(-4.45)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLEV\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.252\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.282\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-0.268\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(-2.57)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(-2.70)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(-3.11)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e_cons\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.102\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.807\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.450\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e2.481\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e2.117\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e2.226\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(17.98)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(3.38)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(2.20)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(6.46)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(4.65)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(5.81)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eYear FE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003er2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.446\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.453\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.558\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.564\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.570\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.690\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003er2_a\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.425\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.429\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.532\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.539\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.542\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.666\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cem\u003eN\u003c/em\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003e\u003cem\u003et\u003c/em\u003e statistics in parentheses\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003e\u003csup\u003e*\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.1, \u003csup\u003e**\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.05, \u003csup\u003e***\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.01\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003eSource: Data Processed with STATA, 2025\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec13\" class=\"Section2\"\u003e \u003ch2\u003e3.4 Additional Robustness Test with Generalized Least Squares (GLS) Method\u003c/h2\u003e \u003cp\u003eAs an additional robustness test, this study employs an alternative estimation method, Generalized Least Squares (GLS) with panels (heteroskedastic) option to address potential heteroskedasticity issues in panel data. GLS is a more efficient estimation technique in dealing with violations of the homoskedasticity assumption by assigning different weights to observations based on their variance (Wooldridge, \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2010\u003c/span\u003e). The application of GLS provides more robust and efficient estimates when heteroskedasticity exists in panel data. If GLS estimation results show consistency with OLS results in terms of direction of effect and statistical significance, this strengthens confidence in the research findings and indicates that the results are not sensitive to the estimation method used. The following is a summary of the additional GLS robustness testing results:\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab6\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 6\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eGLS Estimation Results with Tobin's Q\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"7\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eVariable\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(1)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(2)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(3)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(4)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(5)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(6)\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003eFV\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.048\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.039\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.041\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.059\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.047\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.047\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(4.69)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(3.58)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(4.06)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(5.53)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(4.27)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(4.83)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.137\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.121\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.126\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.168\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.147\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.161\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(14.86)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(12.18)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(13.48)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(14.89)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(12.55)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(15.73)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.064\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.078\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.066\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.085\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(4.13)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(5.52)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(4.40)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(6.64)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI*IC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.087\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.114\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(3.98)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(5.98)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI*IC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.034\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.012\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(1.56)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(0.62)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eAGE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.002\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.002\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.003\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(4.25)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(4.89)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(6.48)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSIZE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.018\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.015\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-0.019\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(-3.85)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(-3.19)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(-4.94)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLEV\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.089\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.101\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-0.113\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(-2.73)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(-2.95)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(-3.91)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e_cons\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.011\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.735\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.635\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e1.451\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e1.087\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e1.071\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(67.59)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(10.86)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(10.09)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(11.59)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(7.26)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(8.62)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eYear FE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003echi2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e407.640\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e435.013\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e541.716\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e538.805\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e595.343\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e830.058\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cem\u003eN\u003c/em\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003e\u003cem\u003et\u003c/em\u003e statistics in parentheses\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003e\u003csup\u003e*\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.1, \u003csup\u003e**\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.05, \u003csup\u003e***\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.01\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003eSource: Data Processed with STATA, 2025\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec14\" class=\"Section2\"\u003e \u003ch2\u003e3.5 Additional Robustness Test: GLS Estimation With Price to Book Value (PBV)\u003c/h2\u003e \u003cp\u003eAs a continuation of the robustness test, this study also estimates the model using the Generalized Least Squares (GLS) method with Price to Book Value (PBV) as an alternative measure of firm value. The combination of alternative estimation method (GLS) and alternative measurement (PBV) provides comprehensive validation of the study's main findings. GLS with panels (heteroskedastic) option is used to address potential heteroskedasticity issues in panel data, producing more efficient estimates by assigning different weights to observations based on their variance. The following is a summary of the additional GLS robustness testing results using PBV as the dependent variable:\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab7\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 7\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eGLS Estimation Results with Price to Book Value (PBV)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"7\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(1)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(2)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(3)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(4)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(5)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(6)\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003ePBV\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.242\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.240\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.270\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.256\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.242\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.282\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(8.24)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(7.66)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(9.94)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(9.18)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(8.22)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(11.42)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.154\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.144\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.181\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.265\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.254\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.305\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(5.92)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(4.99)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(7.27)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(9.08)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(8.30)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(14.14)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.026\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.102\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.067\u003csup\u003e*\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.096\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(0.62)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(2.77)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(1.76)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(3.37)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI*IC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.296\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.358\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(6.10)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(8.68)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI*IC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.079\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.060\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(1.38)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(1.37)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eAGE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.007\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.007\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-0.005\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(-4.89)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(-5.09)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(-4.79)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSIZE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.042\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.040\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-0.060\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(-3.73)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(-3.52)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(-6.43)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLEV\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.227\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-0.247\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-0.272\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(-2.69)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(-2.79)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(-3.79)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e_cons\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.096\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.991\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.471\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e2.544\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e2.247\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e2.426\u003csup\u003e***\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e(26.00)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e(5.56)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e(2.85)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e(8.85)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e(6.35)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e(8.68)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eYear FE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003eYes\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003echi2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e194.726\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e189.125\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e356.981\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e295.841\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e304.215\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e632.624\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cem\u003eN\u003c/em\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e165\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003e\u003cem\u003et\u003c/em\u003e statistics in parentheses\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003e\u003csup\u003e*\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.1, \u003csup\u003e**\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.05, \u003csup\u003e***\u003c/sup\u003e \u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.01\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003eSource: Data Processed with STATA, 2025\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eThe consistent rejection of Hypothesis 4 across all method-measurement combinations (OLS-Tobin's Q, OLS-PBV, GLS-Tobin's Q, GLS-PBV) strengthens the conclusion that the characteristics of green process innovation, which are more technical, standardized, and regulation-bound, make its implementation less dependent on intellectual capital differentiation. Process innovations such as emission reduction, waste treatment, and energy efficiency have clear implementation standards (such as ISO 14001) and directly measurable benefits, allowing the market to evaluate them without requiring reinforcement from intellectual capital. Thus, Hypothesis 4 remains rejected.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab8\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 8\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eComparison of All Estimation Methods (Full Model)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"5\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eGProdI\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eOLS FV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eOLS PBV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eGLS FV\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eGLS PBV\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.051***\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.261***\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.047***\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.282***\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.149***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.282***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.161***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.305***\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.086***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.109***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.085***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.096***\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProdI\u0026times;IC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.109***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.340***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.114***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.358***\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGProcI\u0026times;IC\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.022 n.s.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.072 n.s.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.012 n.s.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.060 n.s.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eAge\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.003***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e-0.005***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.003***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.005***\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSize\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e-0.018***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e-0.054***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e-0.019***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.060***\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLeverage\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e-0.097***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e-0.268***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e-0.113***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e-0.272***\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"5\"\u003e\u003cem\u003eNote: *** p\u0026thinsp;\u0026lt;\u0026thinsp;0,01; ** p\u0026thinsp;\u0026lt;\u0026thinsp;0,05; * p\u0026thinsp;\u0026lt;\u0026thinsp;0,1; n.s. = not significant\u003c/em\u003e\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"5\"\u003eSource: Data Processed with STATA, 2025\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eThe comprehensive comparison shows very high consistency across all combinations of estimation methods and firm value measurements. All main research variables (GProdI, GProcI, and GProdI\u0026times;IC) show positive directional effects and consistent significance levels (p\u0026thinsp;\u0026lt;\u0026thinsp;0.01) across all four model specifications. Similarly, the interaction variable GProcI\u0026times;IC is consistently insignificant across all specifications, with p-values ranging from 0.171 to 0.536. Intellectual capital (IC) shows significant positive direct effects across all models, with significance levels varying from p\u0026thinsp;\u0026lt;\u0026thinsp;0.01 to p\u0026thinsp;\u0026lt;\u0026thinsp;0.10.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec15\" class=\"Section2\"\u003e \u003ch2\u003e3.6 Discussion\u003c/h2\u003e \u003cdiv id=\"Sec16\" class=\"Section3\"\u003e \u003ch2\u003e3.6.1 Green Process Innovation on Firm Value\u003c/h2\u003e \u003cp\u003eResearch results show that green process innovation has a positive and significant effect on firm value in the basic materials and chemicals manufacturing industry in Indonesia. This finding confirms that in the context of capital-intensive basic materials and chemicals manufacturing industry, innovation in environmentally friendly production processes makes a substantial contribution to firm value creation.\u003c/p\u003e \u003cp\u003eFrom the Resource-Based View (RBV) Theory perspective, green process innovation can be explained as a source of sustainable competitive advantage because it meets the VRIO criteria (Valuable, Rare, Inimitable, Organized). First, green process innovation is valuable because it directly contributes to improving operational efficiency through reduced consumption of energy, water, and raw materials, as well as minimizing waste, which ultimately reduces production costs significantly in the long term. Second, the complexity of cleaner production technology that has not been widely adopted in Indonesia's manufacturing industry makes it a rare resource. Third, long-term organizational learning processes and large required investments make green process innovation difficult to imitate by competitors. Fourth, effective implementation requires well-organized organizational structure and environmental management systems.\u003c/p\u003e \u003cp\u003eStakeholder Theory provides a complementary explanation of how green process innovation contributes to increasing firm value. This theory emphasizes that implementing green process innovation helps companies meet stakeholder expectations for cleaner and more environmentally friendly production practices. This can enhance the company's reputation and legitimacy in the eyes of regulators, communities, employees, and other stakeholders (Jakhar et al., 2018). In the context of Indonesia's basic materials and chemicals manufacturing industry facing increasingly strict environmental regulations, the ability to meet stakeholder expectations through more sustainable production processes becomes an important determinant in maintaining and increasing firm value.\u003c/p\u003e \u003cp\u003eThese research findings align with various previous empirical studies confirming the positive relationship between green process innovation and firm value. Research by Wang et al. (\u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) in Asia shows that implementing cleaner production technology can reduce energy consumption by up to 30% and water usage by up to 40%. These resource savings directly contribute to reduced operational costs and increased company profitability. In the Indonesian context, research by Handoko et al. (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) found that manufacturing companies implementing green process innovation achieved average operational cost savings of 25% over a three-year period. A study by Eviana et al. (\u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) on 45 manufacturing companies in Indonesia during 2018\u0026ndash;2021 also confirmed that green process innovation implementation contributes to long-term operational cost reductions of 12\u0026ndash;18%.\u003c/p\u003e \u003cp\u003eA study by He et al. (\u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) reveals that institutional investors increasingly prioritize companies with strong green innovation practices. Research by Kim et al. (\u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) also reveals a global trend where companies with strong green innovation practices have better access to sustainable financing, with average capital costs 1.5% lower compared to conventional companies. These findings indicate that the market gives positive appreciation to companies implementing green process innovation, reflected in increased firm value through reduced cost of capital and increased market valuation.\u003c/p\u003e \u003cp\u003eThe integration of both theories (RBV and Stakeholder Theory) explains how green process innovation increases firm value through two main mechanisms. First, through developing unique internal capabilities in environmentally friendly production processes (RBV) that create competitive advantage through cost efficiency and differentiation. Second, through meeting stakeholder expectations for more sustainable manufacturing practices (Stakeholder Theory) that enhance legitimacy, reputation, and access to external resources. Xie et al. (\u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) in their research on manufacturing companies in China found that green process innovation meeting VRIO criteria significantly contributes to improving environmental performance and company competitive advantage. Li et al. (2020) define green innovation as efforts to minimize energy use, reduce raw materials, and prevent pollution during production processes while prioritizing sustainable and environmentally friendly product attributes.\u003c/p\u003e \u003cp\u003eBased on this analysis, it can be concluded that green process innovation has a positive and significant effect on the value of basic materials and chemicals manufacturing companies in Indonesia. This positive relationship is supported by strong theoretical foundations from Resource-Based View Theory and Stakeholder Theory, and confirmed by various empirical evidence from previous research. Companies successfully implementing green process innovation have been proven to enjoy improved operational efficiency, reduced production costs, better reputation among stakeholders, and higher market value compared to companies not implementing environmentally friendly process innovation. These findings provide important implications for business practitioners and policymakers in optimizing green process innovation implementation as a sustainable firm value enhancement strategy.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec17\" class=\"Section3\"\u003e \u003ch2\u003e3.6.2 Green Product Innovation on Firm Value\u003c/h2\u003e \u003cp\u003eResearch results prove that green product innovation has a positive and significant effect on firm value in the basic materials and chemicals manufacturing industry in Indonesia. Green product innovation is defined as the development and introduction of new products designed to reduce environmental impact (Xie et al., \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). According to Li et al. (2020), green innovation is an effort to minimize energy use, reduce raw materials, and prevent pollution during production processes while prioritizing sustainable and environmentally friendly product attributes. Xie et al. (\u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) and Yao et al. (\u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) classify green innovation into two main components: green product innovation and green process innovation. Green product innovation specifically focuses on modifying and developing products using environmentally friendly materials to minimize negative impacts on ecosystems.\u003c/p\u003e \u003cp\u003eBased on the measurement framework developed by Xie et al. (\u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2019\u003c/span\u003e), green product innovation can be measured through several main indicators: (1) making changes to product design with the aim of preventing pollution or toxic components during the production process; (2) improving and designing environmentally friendly packaging for both old and new products; and (3) making product design modifications to achieve increased energy efficiency during use. These indicators reflect comprehensive company efforts to integrate environmental sustainability aspects into the product life cycle, from the design stage to consumer use.\u003c/p\u003e \u003cp\u003eFrom the Resource-Based View (RBV) Theory perspective, green product innovation can be understood as a source of sustainable competitive advantage because it meets the VRIO criteria (Valuable, Rare, Inimitable, Organized). The ability to develop innovative environmentally friendly products is a valuable resource because it allows companies to meet the continuously growing market demand for sustainable products. The complexity in designing products that meet environmental standards while maintaining quality and cost efficiency makes it a capability that is still rare and difficult to imitate in the industry. Cross-departmental coordination and well-organized product management systems are needed for effective green product innovation implementation.\u003c/p\u003e \u003cp\u003eThe RBV perspective in the context of green product innovation is supported by empirical evidence from various studies. Research conducted by Permana et al. (2021) on the manufacturing industry in Indonesia confirms that green product innovation that is valuable, rare, inimitable, and organized has positive effects on innovation performance and company profitability. This finding confirms that companies able to develop unique capabilities in creating environmentally friendly products will obtain competitive advantages reflected in increased firm value. Agustia et al. (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) also found that companies adopting green innovation successfully reduce production costs and increase economic efficiency, thereby creating sustainable competitive advantage.\u003c/p\u003e \u003cp\u003eStakeholder Theory provides a complementary explanation of how green product innovation contributes to increasing firm value through meeting stakeholder expectations. Developing environmentally friendly products responds to increasingly environmentally conscious consumer demand, investor expectations for sustainable product portfolios, and pressure from environmental NGOs to minimize ecological impact. Research by Jakhar et al. (2018) on manufacturing companies in India reveals that green innovation adoption helps companies meet pressure from various stakeholders, such as government regulations, consumer demands, and investor requirements, thereby increasing company reputation and value.\u003c/p\u003e \u003cp\u003eA study by Erlinda et al. (2022) on the palm oil industry in Indonesia also confirms that green innovation practices meeting multi-stakeholder expectations have positive effects on company legitimacy and sustainability performance. Meeting stakeholder expectations ultimately increases company reputation and strengthens relationships with various stakeholders, which positively impacts firm value. In the context of Indonesia's basic materials and chemicals manufacturing industry, the ability to develop products meeting environmental standards and stakeholder expectations becomes an important determinant in maintaining social legitimacy and increasing firm value.\u003c/p\u003e \u003cp\u003eImplementing green product innovation allows companies to access environmentally conscious market segments and meet increasingly appreciative consumer preferences for sustainable products. Yucha et al. (\u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) identified a positive and significant relationship between green product innovation and repeat purchases, meaning that the more intensive the green product innovation implementation, the higher the level of repeat purchases achieved by the company. This finding indicates that innovative green products can build customer loyalty that ultimately contributes to increased revenue and firm value.\u003c/p\u003e \u003cp\u003eStrong empirical evidence regarding the positive relationship between green product innovation and firm value is strengthened by a longitudinal study by Singh et al. (\u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) on 300 manufacturing companies in Southeast Asia proving that investment in green product innovation positively correlates with increased company market value, as measured by Tobin's Q. This finding confirms that the market gives positive appreciation to companies consistently developing environmentally friendly products, reflected in higher valuations. Dewi and Rahmianingsih (\u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) also reveal that green innovation implementation provides dual benefits for companies, not only in environmental sustainability aspects but also in operational efficiency improvement.\u003c/p\u003e \u003cp\u003eHuang and Li (\u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2017\u003c/span\u003e) found that companies adopting green innovation successfully reduce production costs and increase economic efficiency. However, green product innovation implementation also presents significant challenges for companies. Agustia et al. (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) highlight that developing environmentally friendly processes and products requires substantial investment. Madaleno et al. (\u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) even found negative impacts of environmentally friendly innovation on company performance in the short term due to increased costs that must be borne during the innovation adoption process. Consistent with these findings, Huang and Li (\u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2017\u003c/span\u003e) observed that although green innovation provides various benefits, often the costs incurred are not commensurate with the benefits obtained by companies in the short term.\u003c/p\u003e \u003cp\u003eThe robustness of these research findings is confirmed through testing with alternative measures of firm value, namely Price to Book Value (PBV). Test results show that green product innovation still has a positive and significant effect on PBV (β\u0026thinsp;=\u0026thinsp;0.261, t\u0026thinsp;=\u0026thinsp;9.56, p\u0026thinsp;\u0026lt;\u0026thinsp;0.01). Interestingly, the green product innovation coefficient in the PBV model (0.261) is much larger compared to the Tobin's Q model (0.051). This indicates that green product innovation has a more substantial impact on market valuation of company equity compared to total asset valuation. Investors appear to give higher appreciation to the company's ability to develop environmentally friendly products when valuing company equity.\u003c/p\u003e \u003cp\u003eThe integration of Resource-Based View Theory and Stakeholder Theory provides comprehensive understanding of green product innovation mechanisms in increasing firm value. Through the RBV perspective, green product innovation creates competitive advantage through product differentiation and access to sustainable market segments. Through the Stakeholder Theory perspective, green product innovation increases company legitimacy and reputation through meeting multi-stakeholder expectations. Both mechanisms synergistically contribute to increased firm value reflected in higher market valuations.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec18\" class=\"Section3\"\u003e \u003ch2\u003e3.6.3 Intellectual Capital Moderates the Relationship Between Green Process Innovation and Firm Value\u003c/h2\u003e \u003cp\u003eResearch results show that intellectual capital does not play a significant moderating role in the relationship between green process innovation and firm value in the basic materials and chemicals manufacturing industry in Indonesia. Therefore, the hypothesis stating that intellectual capital moderates the relationship between green process innovation and firm value is rejected.\u003c/p\u003e \u003cp\u003eIntellectual capital in this study is measured using the Value Added Intellectual Coefficient (VAIC), which is a combination of three efficiency components: VACA (Value Added Capital Employed), VAHU (Value Added Human Capital), and STVA (Structural Capital Value Added) (Acu\u0026ntilde;a-Opazo \u0026amp; Gonz\u0026aacute;lez, 2021). All three intellectual capital components, such as human capital (employee expertise and knowledge in environmentally friendly process technology), structural capital (infrastructure, systems, and organizational culture supporting sustainable process innovation), and relational capital (network of relationships with stakeholders such as green technology suppliers, regulators, and communities), are theoretically hypothesized to strengthen company capabilities in effectively implementing environmentally friendly production process innovation.\u003c/p\u003e \u003cp\u003eFrom the Resource-Based View (RBV) Theory perspective, theoretically intellectual capital is expected to strengthen the effect of green process innovation on firm value. Human capital with high technical competence in green process technology should enable companies to optimize energy efficiency, minimize waste, and reduce carbon footprint in production processes. Strong structural capital, such as comprehensive environmental management systems and a continuous improvement culture in process innovation, should accelerate the adoption and implementation of environmentally friendly manufacturing practices. Relational capital, including strategic partnerships with leading green process technology suppliers and support from external stakeholders, should expand company access to resources and knowledge needed for successful green process innovation implementation.\u003c/p\u003e \u003cp\u003eStakeholder Theory also provides theoretical expectations regarding the moderating role of intellectual capital. Competent human capital should help companies design production processes that are not only environmentally friendly but also meet quality and safety standards expected by customers and regulators. Conducive structural capital should facilitate companies in managing and responding to stakeholder demands regarding responsible manufacturing practices. Relational capital should facilitate proactive engagement and communication with various stakeholders, thereby increasing company transparency and accountability in implementing green process innovation (Jakhar et al., 2018).\u003c/p\u003e \u003cp\u003eThe insignificant moderating effect of intellectual capital on the relationship between green process innovation and firm value can be explained from several perspectives. First, green process innovation in the basic materials and chemicals manufacturing industry tends to be more technical and standardized, where its implementation depends more on technology and physical infrastructure investment compared to intellectual capital. Wang et al. (\u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) in their research in Asia found that cleaner production technology implementation can reduce energy consumption by up to 30% and water usage by up to 40%, showing that production process efficiency is more determined by physical technology adoption than intellectual capital capabilities. The capital-intensive industry characteristics make investment in equipment and production technology the main determinant of green process innovation success.\u003c/p\u003e \u003cp\u003eSecond, environmentally friendly production processes such as emission reduction, waste treatment, and energy efficiency are often regulated by standards that have clear implementation guidelines. Septanti et al. (\u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) on the manufacturing and mining industry sector in Indonesia found that companies with ISO 14001 certification can reduce greenhouse gas emissions by an average of 34% compared to companies without certification. Standardization through ISO 14001 provides a structured implementation framework, so the role of intellectual capital differentiation becomes less dominant. Companies can follow these certification guidelines without requiring different levels of intellectual capital to achieve similar results in green process innovation implementation.\u003c/p\u003e \u003cp\u003eThird, the benefits of green process innovation are more direct and measurable, so the market can evaluate them without requiring reinforcement from intellectual capital. Handoko et al. (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) found that manufacturing companies in Indonesia implementing green process innovation achieved average operational cost savings of 25% over a three-year period. Eviana et al. (\u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) in their study of 45 manufacturing companies in Indonesia during 2018\u0026ndash;2021 also confirmed that green process innovation implementation contributes to operational cost reductions of 12\u0026ndash;18% in the long term. These measurable and direct cost savings enable investors and the market to evaluate the impact of green process innovation on firm value independently, without requiring additional consideration of the company's intellectual capital level.\u003c/p\u003e \u003cp\u003eThe capital-intensive characteristics of the basic materials and chemicals manufacturing industry provide additional explanation for this finding. Qureshi et al. (\u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) revealed that the manufacturing sector is the largest energy consumer with a contribution of 36% of total global carbon dioxide (CO2) emissions. In this context, efforts to reduce environmental impact through green process innovation are more determined by investment in cleaner production technology and edge technology (Wang \u0026amp; Ahmad, 2024) compared to intellectual capital capabilities. Kraus et al. (\u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) also identified that the main aspects of green process innovation such as hazardous emission reduction, waste recycling, resource use efficiency, and raw material optimization are more technical-operational in nature and can be achieved through standard technology adoption.\u003c/p\u003e \u003cp\u003eBased on the above analysis, it can be concluded that intellectual capital does not moderate the relationship between green process innovation and firm value in the basic materials and chemicals manufacturing industry in Indonesia. The insignificance of this moderating effect can be explained by the characteristics of green process innovation which are more technical, standardized, and regulation-bound (such as ISO 14001), so that its implementation depends less on intellectual capital differentiation among companies. The direct benefits of green process innovation in the form of cost efficiency and regulatory compliance can be evaluated by the market independently without requiring reinforcement from intellectual capital. This finding provides implications that in the context of capital-intensive industries, companies need to prioritize investment in technology and physical infrastructure to optimize the impact of green process innovation on firm value.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec19\" class=\"Section3\"\u003e \u003ch2\u003e3.6.4 Intellectual Capital Moderates the Relationship Between Green Product Innovation and Firm Value\u003c/h2\u003e \u003cp\u003eResearch results show that intellectual capital plays a significant positive moderating role in strengthening the relationship between green product innovation and firm value in the basic materials and chemicals manufacturing industry in Indonesia. The full model shows that after controlling for other factors such as firm age, size, and leverage, the role of intellectual capital in strengthening the relationship between green product innovation and firm value becomes more prominent. Therefore, the hypothesis stating that intellectual capital moderates the relationship between green product innovation and firm value is accepted.\u003c/p\u003e \u003cp\u003eThe robustness of these research findings is confirmed through various additional tests. Testing with Price to Book Value (PBV) as an alternative measure of firm value shows a stronger moderating effect. The interaction coefficient in the PBV model, which is more than three times larger compared to the Tobin's Q model, indicates that the role of intellectual capital in strengthening the relationship between green product innovation and firm value is more prominent when measured with PBV. The consistency of results across various model specifications and estimation methods strengthens the validity of the conclusion that intellectual capital plays a positive moderating role in the relationship between green product innovation and firm value.\u003c/p\u003e \u003cp\u003eIntellectual capital in this study is measured using the Value Added Intellectual Coefficient (VAIC), which is a combination of three efficiency components (Acu\u0026ntilde;a-Opazo \u0026amp; Gonz\u0026aacute;lez, 2021). The first component is human capital, which reflects employee knowledge and expertise in sustainable product design. The second component is structural capital, which includes R\u0026amp;D systems, innovation management, and organizational culture supporting green innovation. The third component is relational capital, which encompasses collaboration with environmentally friendly raw material suppliers, understanding of consumer preferences, and relationships with various stakeholders. These three components synergistically increase the effectiveness of developing and commercializing innovative green products.\u003c/p\u003e \u003cp\u003eThe Resource-Based View (RBV) Theory perspective explains that intellectual capital strengthens the effect of green product innovation on firm value through enhancing product innovation capabilities that meet VRIO criteria. Strong human capital, characterized by technical expertise and knowledge about sustainable product design, enables companies to be more effective in developing innovative environmentally friendly products that align with market demand. Permana et al. (2021) in their research on the manufacturing industry in Indonesia confirmed that green product innovation that is valuable, rare, inimitable, and organized has positive effects on innovation performance and company profitability. Robust structural capital, such as integrated environmental management systems and organizational culture supporting green innovation, accelerates the process of developing and launching new products.\u003c/p\u003e \u003cp\u003eStrong relational capital, including close collaboration with environmentally friendly raw material suppliers and deep understanding of customer preferences, contributes to the successful commercialization of green products. Similar findings were also revealed by Rachmawati et al. (2020) in the context of manufacturing companies in Indonesia that intellectual capital plays a catalytic role in optimizing the impact of green innovation on company competitiveness. The three intellectual capital components collectively strengthen company capabilities in developing environmentally friendly products that are valuable, rare, difficult to imitate, and well-organized.\u003c/p\u003e \u003cp\u003eStakeholder Theory provides a complementary explanation of the moderating role of intellectual capital in the relationship between green product innovation and firm value. Human capital helps companies understand and anticipate stakeholder needs for environmentally friendly products. Structural capital provides effective stakeholder relationship management systems in the context of green product development. Relational capital facilitates engagement and collaboration with various stakeholders, such as customers, environmental NGOs, and regulators, in the product innovation process. Jakhar et al. (2018) on manufacturing companies in India revealed that green innovation adoption helps companies meet pressure from various stakeholders, thereby increasing company reputation and value.\u003c/p\u003e \u003cp\u003eEffective stakeholder management through intellectual capital ultimately increases acceptance and legitimacy of green products in the market, thereby strengthening the impact of green product innovation on firm value. Erlinda et al. (2022) on the palm oil industry in Indonesia confirmed that green innovation practices meeting multi-stakeholder expectations have positive effects on company legitimacy and sustainability performance. Yucha et al. (\u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) also identified a positive and significant relationship between green product innovation and repeat purchases, indicating that deep understanding of consumer preferences (part of relational capital) contributes to the successful commercialization of green products and increased customer loyalty.\u003c/p\u003e \u003cp\u003eStrong empirical evidence regarding the moderating role of intellectual capital is provided by Zhang and Liu (\u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), who found that companies with strong intellectual capital have a 40% higher success rate in implementing green innovation compared to companies with weak intellectual capital. A comprehensive study by Tram and Ngoc (2024) on the manufacturing industry in ASEAN also revealed that intellectual capital plays a catalytic role in strengthening the relationship between green innovation and firm value, with a significant moderating effect at a 95% confidence level. These findings confirm that intellectual capital is a critical factor determining the extent to which green product innovation can be transformed into increased firm value.\u003c/p\u003e \u003cp\u003eThe significant moderating effect of intellectual capital on the relationship between green product innovation and firm value can be explained by the characteristics of green product innovation that require creativity, market knowledge, and high product development capabilities. Unlike green process innovation, which is more technical and standardized, green product innovation requires deep understanding of sustainable market trends, environmentally conscious consumer preferences, and the ability to design products that meet environmental standards while maintaining product quality and attractiveness. Xie et al. (\u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) identified several green product innovation indicators that require strong intellectual capital capabilities, namely: product design changes to prevent pollution, development of environmentally friendly packaging, and design modifications for energy efficiency during use.\u003c/p\u003e \u003cp\u003eInvestors provide higher premiums to company equity that can combine green product innovation with strong intellectual capital. He et al. (\u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) revealed that institutional investors increasingly prioritize companies with strong green innovation practices. Kim et al. (\u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) also found that companies with strong green innovation practices have better access to sustainable financing, with average capital costs 1.5% lower compared to conventional companies. These findings indicate that the market appreciates the synergy between green product innovation and intellectual capital, which is reflected in higher company valuations.\u003c/p\u003e \u003cp\u003eThe integration of Resource-Based View Theory and Stakeholder Theory explains the moderating mechanism of intellectual capital through two main pathways. First, through the RBV pathway, intellectual capital strengthens company capabilities in developing environmentally friendly products that meet VRIO criteria, thereby creating stronger and more sustainable competitive advantages. Second, through the Stakeholder Theory pathway, intellectual capital facilitates more effective stakeholder management, increases the legitimacy of green products in the market, and strengthens relationships with various stakeholders. Agustia et al. (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) found that companies adopting green innovation successfully reduce production costs and increase economic efficiency, with intellectual capital playing a role in optimizing the transformation process.\u003c/p\u003e \u003cp\u003eBased on this analysis, it can be concluded that intellectual capital is proven to significantly moderate the relationship between green product innovation and firm value in the basic materials and chemicals manufacturing industry in Indonesia. Companies with strong intellectual capital, including human capital, structural capital, and relational capital, are proven to be more effective in developing and commercializing innovative environmentally friendly products, thereby strengthening the positive impact of green product innovation on firm value. This finding is supported by strong theoretical foundations from Resource-Based View Theory and Stakeholder Theory, and confirmed by various empirical evidence from previous research (Zhang \u0026amp; Liu, \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Tram \u0026amp; Ngoc, 2024; Delgado-Verde et al., 2016; Rachmawati et al., 2020; Permana et al., 2021). The strategic implication of this finding is that basic materials and chemicals manufacturing companies in Indonesia need to develop intellectual capital in parallel with investments in green product innovation to optimize sustainable firm value creation.\u003c/p\u003e \u003c/div\u003e \u003c/div\u003e"},{"header":"4. CONCLUSION","content":"\u003cp\u003eThis research provides comprehensive evidence that green innovation, encompassing both green process innovation and green product innovation, serves as an effective strategy for enhancing firm value in Indonesia's basic materials and chemicals manufacturing industry. The findings confirm that green process innovation exerts a more substantial impact on firm value compared to green product innovation, primarily through direct operational cost savings, regulatory compliance, and enhanced stakeholder legitimacy. However, the moderating role of intellectual capital proves to be selective and context-dependent. While intellectual capital significantly strengthens the relationship between green product innovation and firm value through enhanced capabilities in product development, market understanding, and stakeholder management, it does not moderate the relationship between green process innovation and firm value due to the technical, standardized, and regulation-bound nature of process innovations. These findings, validated through multiple robustness tests across different measurement proxies (Tobin's Q and PBV) and estimation methods (OLS and GLS), provide robust empirical evidence supporting the integration of Resource-Based View Theory and Stakeholder Theory in explaining green innovation's value creation mechanisms.\u003c/p\u003e \u003cp\u003eThe practical implications of this research are substantial for manufacturing companies, policymakers, and investors in Indonesia. Companies should prioritize investments in green process innovation while simultaneously developing intellectual capital capabilities to maximize the benefits of green product innovation. For policymakers, these findings underscore the importance of creating supportive regulatory frameworks and incentives that encourage both dimensions of green innovation, particularly in light of Indonesia's commitment to the Paris Agreement for reducing greenhouse gas emissions by 29% by 2030. The acceleration of green innovation adoption is not merely an environmental imperative but a strategic necessity for maintaining competitiveness in global markets increasingly dominated by sustainability considerations. Future research should address the limitations of this study by expanding the sample to other manufacturing sectors, employing alternative measurement approaches such as patent data, extending the observation period beyond the COVID-19 pandemic era, and exploring additional moderating variables that may influence the green innovation-firm value relationship in developing country contexts.\u003c/p\u003e"},{"header":"Declarations","content":"\u003cp\u003e\u003cstrong\u003eAcknowledgments\u003c/strong\u003e:\u003c/p\u003e\n\u003cp\u003eThank to Universitas Pembangunan Nasional Veteran Jawa Timur and INTI International University as the funders for this research.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eEthical Approval\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eNot applicable.\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003cstrong\u003eConsent to Participate\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eNot applicable.\u0026nbsp;\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003cstrong\u003eConsent to Publish\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eNot applicable.\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003cstrong\u003eDeclaration of conflicting interest\u003c/strong\u003e:\u003c/p\u003e\n\u003cp\u003eThe authors declare that they have no competing financial interests or personal relationships that could have influenced the work reported in this paper.\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003cstrong\u003eFunding Statement\u003c/strong\u003e:\u0026nbsp;\u003c/p\u003e\n\u003cp\u003eThis research is funded by Universitas Pembangunan Nasional Veteran Jawa Timur and INTI International University, Research Grants No.\u0026nbsp;SPP/70/UN.63.8/LT/V/2025.\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003cstrong\u003eData availability statement\u003c/strong\u003e:\u003c/p\u003e\n\u003cp\u003eThe data processed and analyzed in this article are available from the author upon reasonable request.\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\u003cli\u003e\u003cspan\u003eAgustia D, Sawarjuwono T, Dianawati W. The mediating effect of environmental management accounting on green innovation: firm value relationship. Int J Energy Econ Policy. 2019;9(2):299\u0026ndash;306. ttps://doi.org/10.32479/ijeep.7438.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eAnugrah N. (2022, 29 Juli). Gakkum KLHK Tahan Dua Tersangka Kasus Dumping Limbah B3 dan Pembukaan Kebun Sawit Ilegal. Diakses pada 17 November 2024 dari \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://ppid.menlhk.go.id/berita/siaran-pers/6639/gakkum-klhk-tahan-dua-tersangka-kasus-dumping-limbah-b3-dan-pembukaan-kebun-sawit-ilegal\u003c/span\u003e\u003cspan address=\"https://ppid.menlhk.go.id/berita/siaran-pers/6639/gakkum-klhk-tahan-dua-tersangka-kasus-dumping-limbah-b3-dan-pembukaan-kebun-sawit-ilegal\" targettype=\"URL\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eAriefana P. (2022, 19 Mei). Gawat Limbah B3 Dibuang ke Kawasan Perhutanan Sosial Cibenda Karawang, Hewan Ternak Mati, Kesehatan Warga Terancam. Diakses pada 17 Oktober 2024 dari \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://www.suara.com/news/2022/05/19/150921/gawat-limbah-b3-dibuang-ke-kawasan-perhutanan-sosial-cibenda-karawang-hewan-ternak-mati-kesehatan-warga-terancam\u003c/span\u003e\u003cspan address=\"https://www.suara.com/news/2022/05/19/150921/gawat-limbah-b3-dibuang-ke-kawasan-perhutanan-sosial-cibenda-karawang-hewan-ternak-mati-kesehatan-warga-terancam\" targettype=\"URL\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eChen M, Matousek R. Do productive firms get external finance? Evidence from Chinese listed manufacturing firms. Int Rev Financial Anal. 2020;67:101422. ttps://doi.org/10.1016/j.irfa.2019.101422.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eDewi R, Rahmianingsih A. (2020). Meningkatkan nilai perusahaan melalui green innovation dan eco-effisiensi. \u003cem\u003eEkspansi: Jurnal Ekonomi, Keuangan, Perbankan, dan Akuntansi, 12\u003c/em\u003e(2), 225\u0026ndash;243. ttps://doi.org/10.35313/ekspansi.v12i2.2241\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eEviana E, Violinda Q, Indiworo HE. (2023). Analisis Manajemen Laba Pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2018\u0026ndash;2021 (Studi pada Perusahaan Manufaktur yang Terdaftar di BEI tahun 2018\u0026ndash;2021). \u003cem\u003eJurnal Ilmiah Manajemen, Bisnis Dan Kewirausahaan\u003c/em\u003e, \u003cem\u003e3\u003c/em\u003e(1), 72\u0026ndash;81. ttps://doi.org/10.55606/jurimbik.v3i1.367\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eFama EF, French KR. The cross-section of expected stock returns. J Finance. 1992;47(2):427\u0026ndash;65. ttps://doi.org/10.1111/j.1540-6261.1992.tb04398.x.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eFan Y, Usman M, Wen Y, Poulov\u0026aacute; P. Unraveling the nexus between fiscal decentralization, innovation, and sustainable economic performance in China. Technol Forecast Soc Chang. 2024;199:123082. ttps://doi.org/10.1016/j.techfore.2024.123082.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eHadi DW. (2019, 12 Desember). Indonesia Tagih Komitmen Negara Maju Terhadap Perjanjian Paris. Diakses pada 17 November 2024 dari \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://ppid.menlhk.go.id/berita/siaran-pers/5212/indonesia-tagih-komitmen-negara-maju-terhadap-perjanjian-paris\u003c/span\u003e\u003cspan address=\"https://ppid.menlhk.go.id/berita/siaran-pers/5212/indonesia-tagih-komitmen-negara-maju-terhadap-perjanjian-paris\" targettype=\"URL\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eHandoko F, Paula C, Hidayat S, Rastini EK, Wijayaningtyas M, Vitasari P. A green-based manufacturing system to solve pallet shortage problems. Heliyon. 2021;7(4). ttps://doi.org/10.1016/j.heliyon.2021.e06823.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eHe F, Yan Y, Hao J, Wu JG. Retail investor attention and corporate green innovation: Evidence from China. Energy Econ. 2022;115:106308. ttps://doi.org/10.1016/j.eneco.2022.106308.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eHuang JW, Li YH. Green innovation and performance: The view of organizational capability and social reciprocity. J Bus Ethics. 2017;145:309\u0026ndash;24. ttps://doi.org/10.1007/s10551-015-2903-y.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eTram HM, N., Hoang Ngoc B. Environmental Foe or Friend: The Impact of Intellectual Capital and Ambidextrous Innovation on Environmental Performance. Sage Open. 2024;14(2). ttps://doi.org/10.1177/21582440241256768.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eIoannidis JP, Stanley TD, Doucouliagos H. The power of bias in economics research. Econ J. 2017;127(605):F236\u0026ndash;65. ttps://doi.org/10.1111/ecoj.12461.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eJoharsono YM. (2024, 20 Januari). Gangguan Pabrik Chandra Asri, Polusi Pembakaran Gas Selimuti Langit Cilegon. Diakses pada 17 November 2024 dari \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://www.tempo.co/ekonomi/gangguan-pabrik-chandra-asri-polusi-pembakaran-gas-selimuti-langit-cilegon-95737\u003c/span\u003e\u003cspan address=\"https://www.tempo.co/ekonomi/gangguan-pabrik-chandra-asri-polusi-pembakaran-gas-selimuti-langit-cilegon-95737\" targettype=\"URL\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eKim MS, Chang H, Zheng L, Yan Q, Pfleger BF, Klier J, Huber GW. A review of biodegradable plastics: chemistry, applications, properties, and future research needs. Chem Rev. 2023;123(16):9915\u0026ndash;39. ttps://doi.org/10.1021/acs.chemrev.2c00876.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eKraus S, Rehman SU, Garc\u0026iacute;a FJS. Corporate social responsibility and environmental performance: the mediating role of environmental strategy and green innovation. Technol Forecast Soc Chang. 2020;160:120262. ttps://doi.org/10.1016/j.techfore.2020.120262.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eLee-Makiyama H. The EU Green Deal and its industrial and political significance. ECIPE, European Centre for International Political Economy; 2021.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eLi W, Wang J, Chen R, Xi Y, Liu SQ, Wu F, Wu X. Innovation-driven industrial green development: The moderating role of regional factors. J Clean Prod. 2019;222:344\u0026ndash;54. ttps://doi.org/10.1016/j.jclepro.2019.03.027.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eMadaleno M, Robaina M, Dias MF, Meireles M. Dimension effects in the relationship between eco-innovation and firm performance: A European comparison. Energy Rep. 2020;6:631\u0026ndash;7. ttps://doi.org/10.1016/j.egyr.2019.09.038.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eMollik S, Karim R, Sahabuddin M, Eneizan B. Industry 5.0 and the circular economy: A transformative nexus. J Clean Prod. 2024;412:137456. ttps://doi.org/10.1016/j.jclepro.2024.137456.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003ePark S-J, Yi Y. Assessing moderator effects, main effects, and simple effects without collinearity problems in moderated regression models. J Bus Res. 2022;145:905\u0026ndash;19. ttps://doi.org/10.1016/j.jbusres.2022.03.018.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003ePutri A. (2022, 20 Oktober). Warga Kembali Menangkan Banding atas Gugatan Polusi Udara. Diakses pada 17 Oktober 2024 dari \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://bantuanhukum.or.id/warga-kembali-menangkan-banding-atas-gugatan-polusi-udara/\u003c/span\u003e\u003cspan address=\"https://bantuanhukum.or.id/warga-kembali-menangkan-banding-atas-gugatan-polusi-udara/\" targettype=\"URL\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eQureshi MI, Khan N, Qayyum S, Malik S, Hishan SS, Ramayah T. Classifications of sustainable manufacturing practices in ASEAN region: A systematic review and bibliometric analysis of the past decade of research. Sustainability. 2020;12(21):8950. ttps://doi.org/10.3390/su12218950.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eSeptanti EM, Joko T, Setiani O. Faktor-Faktor Yang Mempengaruhi Penerapan Sistem Manajemen Lingkungan ISO 14001. PREPOTIF: Jurnal Kesehatan Masyarakat. 2024;8(2):4041\u0026ndash;51. ttps://doi.org/10.31004/prepotif.v8i2.30934.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eSingh C, Singh D, Khamba JS. Analyzing barriers of Green Lean practices in manufacturing industries by DEMATEL approach. J Manuf Technol Manage. 2021;32(1):176\u0026ndash;98. ttps://doi.org/10.1108/JMTM-02-2020-0053.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eWang R, Mirza N, Vasbieva DG, Abbas Q, Xiong D. The nexus of carbon emissions, financial development, renewable energy consumption, and technological innovation: what should be the priorities in light of COP 21 Agreements? J Environ Manage. 2020;271:111027. ttps://doi.org/10.1016/j.jenvman.2020.111027.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eWooldridge JM. Econometric analysis of cross section and panel data. 2nd ed. MIT Press; 2010.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eXie X, Huo J, Zou H. Green process innovation, green product innovation, and corporate financial performance: A content analysis method. J Bus Res. 2019;101:697\u0026ndash;706. ttps://doi.org/10.1016/j.jbusres.2019.01.010.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eYao Q, Zeng S, Sheng S, Gong S. Green innovation and brand equity: Moderating effects of industrial institutions. Asia Pac J Manage. 2021;38(2):573\u0026ndash;602. ttps://doi.org/10.1007/s10490-019-09664-2.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eYucha N, Arif D, Sevana BC. Perilaku Konsumen Terkait Loyalitas Pelanggan. CV. Intelektual Manifes Media; 2024.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eZhang M, Liu Y. Influence of digital finance and green technology innovation on China's carbon emission efficiency: empirical analysis based on spatial metrology. Sci Total Environ. 2022;838:156463. ttps://doi.org/10.1016/j.scitotenv.2022.156463.\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eZhang C, Ma Y, Zhang E. Does green innovation promote financial performance of Chinese listed companies? J Innov Knowl. 2025;10(4):100740. ttps://doi.org/10.1016/j.jik.2025.100740.\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":false,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"discover-sustainability","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"disu","sideBox":"Learn more about [Discover Sustainability](https://www.springer.com/43621)","snPcode":"","submissionUrl":"","title":"Discover Sustainability","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Discover Series","inReviewEnabled":true,"inReviewRevisionsEnabled":true},"keywords":"Green Innovation, Intellectual Capital, Firm Value, Manufacturing Industry, Sustainability, Process Innovation","lastPublishedDoi":"10.21203/rs.3.rs-9042550/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-9042550/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eDespite growing pressure on manufacturing industries to adopt sustainable practices, empirical evidence on whether green innovation translates into measurable firm value remains mixed, and the boundary conditions governing this relationship\u0026mdash;particularly the moderating role of intellectual capital\u0026mdash;are poorly understood in emerging market contexts. This study examines the impact of green innovation on firm value and the moderating role of intellectual capital in basic materials and chemicals manufacturing companies listed on the Indonesia Stock Exchange during 2019\u0026ndash;2023. Using panel data from 165 observations across 33 companies, this research employs Ordinary Least Squares (OLS) and Generalized Least Squares (GLS) methods with moderated regression analysis. Green innovation is measured through content analysis of sustainability reports, while firm value is assessed using Tobin's Q and Price to Book Value (PBV). Results demonstrate that both green product innovation and green process innovation significantly enhance firm value, with green process innovation showing a stronger effect. Notably, intellectual capital significantly moderates the relationship between green product innovation and firm value, but not for green process innovation. These findings remain robust across alternative measurements and estimation methods. This study contributes to the literature by integrating Resource-Based View Theory and Stakeholder Theory, providing strategic insights for manufacturing companies to optimize green innovation implementation and intellectual capital development for sustainable value creation.\u003c/p\u003e","manuscriptTitle":"The Effect of Green Innovation on Firm Value Moderated by Intellectual Capital in Indonesian Basic Materials and Chemical Industry","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2026-03-24 14:54:36","doi":"10.21203/rs.3.rs-9042550/v1","editorialEvents":[{"type":"communityComments","content":0},{"type":"decision","content":"Revision requested","date":"2026-05-05T12:45:22+00:00","index":"","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2026-05-03T10:24:25+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"253847139896315381323147678323562325532","date":"2026-05-01T23:04:06+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"23559407779435259263237913006278148320","date":"2026-05-01T00:11:08+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"101708490405144528564096999337540013901","date":"2026-04-30T09:48:53+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"257754834648076008867019928468605457015","date":"2026-04-29T15:50:41+00:00","index":"hide","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2026-04-29T03:49:54+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"307778132115111642242867222210848707509","date":"2026-04-29T01:40:34+00:00","index":"hide","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2026-04-15T10:14:57+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"51800527514242549990046297537491062148","date":"2026-04-07T09:00:30+00:00","index":"hide","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2026-03-29T06:08:43+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"76823144375798605329218375996696242836","date":"2026-03-28T11:03:13+00:00","index":"hide","fulltext":""},{"type":"reviewersInvited","content":"","date":"2026-03-20T08:19:29+00:00","index":"","fulltext":""},{"type":"editorAssigned","content":"","date":"2026-03-19T15:21:31+00:00","index":"","fulltext":""},{"type":"editorInvited","content":"","date":"2026-03-18T15:11:46+00:00","index":"","fulltext":""},{"type":"checksComplete","content":"","date":"2026-03-13T11:57:06+00:00","index":"","fulltext":""},{"type":"submitted","content":"Discover Sustainability","date":"2026-03-12T13:41:05+00:00","index":"","fulltext":""}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"discover-sustainability","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"disu","sideBox":"Learn more about [Discover Sustainability](https://www.springer.com/43621)","snPcode":"","submissionUrl":"","title":"Discover Sustainability","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Discover Series","inReviewEnabled":true,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"25a7f9fd-039b-45d5-99bf-640594c42dc5","owner":[],"postedDate":"March 24th, 2026","published":true,"recentEditorialEvents":[{"type":"decision","content":"Revision requested","date":"2026-05-05T12:45:22+00:00","index":"","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2026-05-03T10:24:25+00:00","index":46,"fulltext":""},{"type":"reviewerAgreed","content":"253847139896315381323147678323562325532","date":"2026-05-01T23:04:06+00:00","index":45,"fulltext":""},{"type":"reviewerAgreed","content":"23559407779435259263237913006278148320","date":"2026-05-01T00:11:08+00:00","index":44,"fulltext":""},{"type":"reviewerAgreed","content":"101708490405144528564096999337540013901","date":"2026-04-30T09:48:53+00:00","index":43,"fulltext":""},{"type":"reviewerAgreed","content":"257754834648076008867019928468605457015","date":"2026-04-29T15:50:41+00:00","index":42,"fulltext":""},{"type":"editorInvitedReview","content":"","date":"2026-04-29T03:49:54+00:00","index":40,"fulltext":""}],"rejectedJournal":[],"revision":"","amendment":"","status":"in-revision","subjectAreas":[],"tags":[],"updatedAt":"2026-05-05T12:56:25+00:00","versionOfRecord":[],"versionCreatedAt":"2026-03-24 14:54:36","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-9042550","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-9042550","identity":"rs-9042550","version":["v1"]},"buildId":"XKTyCvWXoU3ODBz1xrDgd","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}