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Does ESG disclosure impact firm value: Evidence for companies in Indonesia.

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Bibliographic Details
Title: Does ESG disclosure impact firm value: Evidence for companies in Indonesia.
Authors: Rohendi, Hendi1 (AUTHOR) hendi.rohendi@polban.ac.id, Apriliawati, Yeti1 (AUTHOR) yeti.apriliawati@polban.ac.id
Source: AIP Conference Proceedings. 2025, Vol. 3334 Issue 1, p1-8. 8p.
Subject Terms: *ENTERPRISE value, *PANEL analysis, *INDONESIANS, *ECOLOGICAL impact, *CAPITAL market, *QUANTITATIVE research, *CORPORATE governance, *SUSTAINABLE development reporting
Geographic Terms: INDONESIA
Abstract: This study uses a quantitative approach to evaluate the effect of Environmental, Social, and Governance (ESG) disclosure on firm value. It employed secondary data. The population of this study includes companies listed on the Indonesia Stock Exchange during the period 2015 to 2022. The research sample consisted 51 companies in Indonesia with a total of 357 observation data. Furthermore, data analysis was carried out using panel econometric techniques, such as pooled ordinary least square (OLS), fixed effect models, and random effect models using Eviews 12. The findings confirm that ESG disclosure and environmental disclosure pillars have a positive and significant impact on firm value. Meanwhile, the social disclosure pillar and governance pillar have no effect on firm value. This study has two contributions. First, by disclosing ESG, stakeholders and investors will respond positively, thus having an impact on better firm value. Second, the study explains the importance of ESG disclosure for companies because it has an impact on increasing firm value. [ABSTRACT FROM AUTHOR]
Database: Academic Search Index
Description
Abstract:This study uses a quantitative approach to evaluate the effect of Environmental, Social, and Governance (ESG) disclosure on firm value. It employed secondary data. The population of this study includes companies listed on the Indonesia Stock Exchange during the period 2015 to 2022. The research sample consisted 51 companies in Indonesia with a total of 357 observation data. Furthermore, data analysis was carried out using panel econometric techniques, such as pooled ordinary least square (OLS), fixed effect models, and random effect models using Eviews 12. The findings confirm that ESG disclosure and environmental disclosure pillars have a positive and significant impact on firm value. Meanwhile, the social disclosure pillar and governance pillar have no effect on firm value. This study has two contributions. First, by disclosing ESG, stakeholders and investors will respond positively, thus having an impact on better firm value. Second, the study explains the importance of ESG disclosure for companies because it has an impact on increasing firm value. [ABSTRACT FROM AUTHOR]
ISSN:0094243X
DOI:10.1063/5.0295195