Effect of Environment, Social and Governance Disclosure on Firm Value

Suretno, Faradilla; Adrianto, Fajri; Alfarisi, Mohamad Fany

doi:10.18196/jbti.v13i2.14458

Cited by 7 publications

(4 citation statements)

References 16 publications

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“…Based on the results of the hypothesis test, it was found that environmental disclosure has a significant positive influence on the value of the company. This is in line with research conducted by Kamilla (2020), Anggreni et al (2022), Fitri et al (2019, Sundari and Setiany (2021), Suretno et al (2022) which stated that corporate environmental disclosure has a positive influence on firm value. Muslichah (2020) stated that environmental disclosure has a significant influence on company performance.…”

Section: Environmental Disclosuresupporting

confidence: 89%

The Effect of Business Strategy and Environmental Disclosure on Firm Value

2023

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This study aims to examine the effect of business strategy and environmental disclosure on firm value. Phenomena related to fluctuations in the Composite Stock Price Index are related to calculating company value, researchers have the aim of testing what factors can affect firm value. The business strategy consists of a cost leadership strategy and a differentiation strategy. The secondary data used in this research is the company's Annual Report and data from Bloomberg. The sample used is the sector Basic Materials, Consumer Non-cyclicals, Consumer Cyclicals, and Healthcare, and Energy during 2018-2021, with 164 firm years of data analyzed. Data analysis using multiple linear regression method. This research method uses classical assumption testing consisting of normality, multicollinearity test, heteroscedasticity test and autocorrelation test. This study also tested the coefficient of determination test (R2), F test, T test. The results of the study show that the variable cost leadership strategy and differentiation strategy have a positive effect on firm value. Likewise, the environmental variable disclosure has a positive effect on company value. This research is expected that both companies and investors can consider factors that can increase company value, so that in making decisions can consider these factors.

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Section: Environmental Disclosuresupporting

confidence: 89%

The Effect of Business Strategy and Environmental Disclosure on Firm Value

2023

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“…The ESG ratings was found to have a positive and significant relationship with the firm value in Aydoğmuş et al (2022) study on 5000 public companies worldwide. Similar result also found in Suretno et al (2022) on 27 public companies in Indonesia for the 2016-2020 data period. In contrast, research on 52 public companies in Indonesia for the 2015-2019 data period by Lubis and Rokhim (2021) shows a negative relationship between ESG ratings and firm value.…”

Section: Introductionsupporting

confidence: 85%

Is ESG Companies' Performance Influenced by Ownership Structure? Evidence in ASEAN

Kurniawan

Rokhim

2023

ISS

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Background: According to studies on sustainability dimensions – environmental, social, and governance (ESG) – companies that effectively address the stakeholders’ ESG expectations are likely to outperform companies that poorly implement ESG principles. Studies show mixed results of the relationship between ESG and financial performance. Besides, ESG adoption in ASEAN countries is still in early stage compared with European countries or US region. Aim: The purpose of this paper is to investigate the relationship between Environmental, Social and Governance (ESG) performance and firm performance of ASEAN listed companies moderated by company ownership structure. Method: This paper selects publicly listed companies in ASEAN stock exchanges with data period of 2017-2021, a total of 607 companies samples with 1,309 data observations. Refinitiv Eikon ESG rating is adopted in this paper to measure ESG performance while ownership structure is measured in three aspects, which include ownership concentration, equity balances, and institutional investor shareholding. Findings: The research found that (1) ESG performance has negative and significant relation to both market-based and accounting-based firm performances, (2) ownership concentration has no significant moderating role on ESG – firm performance relationship, (3) equity balance is only significant in moderating ESG relationship to Tobin’s Q, meanwhile (4) institutional ownership is found statistically significant in moderating the ESG relationship to Tobin’s Q and ROE but not to ROA.

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“…The practice of corporate governance in the company is indeed implemented, but its implementation is not entirely by the principles of corporate governance transparency, accountability, responsibility, independence, and fairness. In other words, the practice of corporate governance is carried out by the company only as a formality or fulfilment of the company's obligations towards the regulations set by the government (Suretno et al, 2022). This phenomenon indeed will reduce investor trust in governance disclosure.…”

Section: Resultsmentioning

confidence: 99%

ESG and firm performance: The moderating role of gender diversity

Marheni,

Sherry,

Yulfiswandi

2024

Optim. J. Ekon. dan Pembang.

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Disclosure of ESG from companies around the world has experienced a drastic increase, this phenomenon is also accompanied by an increase in socially responsible investment. This study investigates the moderating role of gender diversity in the relationship between the individual dimensions of ESG (environmental disclosure, social disclosure, and governance disclosure) and the company’s performance (Tobin's Q) in IDX companies. The research design is causal-explanatory. Based on the theory of previous findings, hypotheses were developed and tested by applying panel data regression to 42 IDX companies in the period of 2017 to 2021. The results found that disclosure of governance had a significant negative effect on company performance as measured by Tobin's Q. Moderation of gender diversity plays a role in weakening the relationship between governance disclosure with company performance. Several managerial implications are proposed based on this research. Managers may consider other ways to address stakeholder concerns about environmental and social performance. Indonesian policymakers can authorize regulations regarding ESG disclosure requirements to boost firm performance and lead to economic stability.

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Effect of Environment, Social and Governance Disclosure on Firm Value

Cited by 7 publications

References 16 publications

The Effect of Business Strategy and Environmental Disclosure on Firm Value

The Effect of Business Strategy and Environmental Disclosure on Firm Value

Is ESG Companies' Performance Influenced by Ownership Structure? Evidence in ASEAN

ESG and firm performance: The moderating role of gender diversity

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