The Effect of Environmental, Social, and Governance Disclosure on the Firm Value of Telecommunication Companies Listed on the Indonesia Stock Exchange During the 2022–2024 Period
Abstract
This study aims to examine the effect of Environmental, Social, and Governance (ESG) scores on firm value as measured by Price-to-Book Value (PBV). The population of this study consists of telecommunications companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. ESG scores are employed as the independent variable, while PBV serves as the dependent variable. The telecommunications sector was selected because of its strategic role in supporting digital transformation and its growing exposure to sustainability-related issues, including energy consumption, electronic waste management, data security, and digital inclusion. This research applies a quantitative approach using panel data obtained from annual and sustainability reports of the sampled companies. The hypotheses were tested using panel data regression analysis with the assistance of EViews software. The analysis was conducted to determine whether ESG disclosure and performance contribute to enhancing firm value from the perspective of investors and the capital market. The results indicate that ESG scores have a negative and statistically insignificant effect on Price-to-Book Value (PBV). These findings suggest that investors in the Indonesian telecommunications sector may not yet consider ESG performance as a primary factor in determining company valuation. Instead, market participants may place greater emphasis on financial performance and other conventional indicators when making investment decisions. The study contributes to the growing literature on ESG and firm value by providing empirical evidence from the telecommunications industry in an emerging market context.
Downloads
References
Aditya, M., & Hasnawati, S. (2025). The effect of ESG disclosure on firm value (Empirical study on companies listed in the IDX ESG Leader Index for the period 2021–2023). International Journal of Education, Social Studies, and Management, 5(2), 614–627. https://doi.org/10.24860/ijessm.v57i3.305
Brigham, E. F., & Gapenski, L. C. (2006). Intermediate Financial Management (7th ed.). Sea Harbor Drive: The Dryden Press.
Christy, E., & Sofie. (2023). Pengaruh pengungkapan environmental, social, dan governance terhadap nilai perusahaan. Jurnal Ekonomi Trisakti, 3(2), 3899–3908. https://doi.org/10.25105/jet.v3i2.18233
Euis, & Taswan. (2002). Pengaruh kebijakan hutang terhadap nilai perusahaan serta beberapa faktor yang mempengaruhinya. Jurnal Bisnis dan Ekonomi.
Fatemi, A., Glaum, M., & Kaiser, S. (2017). ESG performance and firm value: The moderating role of disclosure. https://doi.org/10.1016/j.gfj.2017.03.001
Ghozali, I. (2006). Aplikasi Analisis Multivariate dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro.
Gillan, S. L., Koch, A., & Starks, L. T. (2021). Firms and social responsibility: A review of ESG and CSR research in corporate finance. Journal of Corporate Finance, 66, 101889.
Hermuningsih, S. (2013). Pengaruh profitabilitas, growth opportunity, struktur modal terhadap nilai perusahaan pada perusahaan publik di Indonesia. Buletin Ekonomi Moneter dan Perbankan.
Husnan, S. (2000). Manajemen Keuangan: Teori dan Penerapan Keputusan Jangka Panjang. Yogyakarta: BPFE.
Isbahi, M. B., Zuana, M. M. M. ., & Mariana, E. R. . (2022). The Technology Strategy in Website Communication Media in Improving Business Activities. Majapahit Journal of Islamic Finance and Management, 1(2), 126–138. https://doi.org/10.31538/mjifm.v1i2.17
Johan, & Toti, G. K. (2022). Pengungkapan environmental, social, & governance (ESG) terhadap profitabilitas serta nilai perusahaan dalam indeks SRI-KEHATI 2015–2020. Media Riset Bisnis & Manajemen, 22, 35–48.
Keown. (2004). Manajemen Keuangan: Prinsip-prinsip dan Aplikasi (9th ed.). Jakarta: Indeks.
Kusumajaya, D. K. O. (2011). Pengaruh struktur modal dan pertumbuhan perusahaan terhadap profitabilitas dan nilai perusahaan manufaktur di Bursa Efek Indonesia.
La Torre, M., Mango, F., Cafaro, A., & Leo, S. (2020). Does the ESG index affect stock return? Evidence from the Eurostoxx50. SCIRP.
Marsuki, M. A., & Efendi, D. (2024). Pengaruh environmental social governance dan profitabilitas terhadap nilai perusahaan. Jurnal Ilmu dan Riset Akuntansi (JIRA), 13(6).
Meini, Z., & Setijaningsih, H. T. (2024). The impact of ESG on firm value: Empirical study on Indonesia and Singapore companies. Jurnal Equity, 27(2), 128–146.
Modigliani, F., & Miller, M. (1958). The cost of capital, corporation finance, and the theory of investment. American Economic Review, 48(3), 261–297.
Nachrowi, D. N., & Usman, H. (2006). Pendekatan Populer dan Praktis Ekonometrika untuk Analisis Ekonomi dan Keuangan. Jakarta: Lembaga Penerbit Universitas Indonesia.
Organisation for Economic Co-operation and Development (OECD). (2022). Trends in ESG investing and quality infrastructure investment in Asia-Pacific. OECD Publishing. https://www.oecd.org/publications/trends-inesg-investing-and-quality-infrastructure-investment-in-asia-pacific-022d1fc8-en.htm
Rachmawati, S. (2020). Moderating effect of profitability on intellectual capital and real earnings management. The Accounting Journal of Binaniaga, 5(01), 33. https://doi.org/10.33062/ajb.v5i01.366
Salvatore, D. (2005). Ekonomi Manajerial dalam Perekonomian Global. Jakarta: Salemba Empat.
Tirta Wangi, G., & Aziz, A. (2024). Analisis pengaruh ESG disclosure, likuiditas, dan profitabilitas terhadap nilai perusahaan pada perusahaan yang terdaftar di indeks ESG Leaders. Ikraith Ekonomika, 7(2), 221–230.
Wibisono, Y. (2005). Metode Statistika. Yogyakarta: Gadjah Mada University Press.
Widarjono, A. (2005). Ekonometrika Teori dan Aplikasi untuk Ekonomi dan Bisnis. Yogyakarta: EKONISIA FE UII.
Copyright (c) 2026 Jerry Hotama, Widyasari Widyasari
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
