Effect of Environmental Social Governance Disclosure on Company Value in the Energy Sector Listed on the Indonesia Stock Exchange
Abstract
This research is based on the fact that many companies ignore the environment in their operations, although good relationships with the community and the environment are vital for business sustainability. This responsibility increases as the company grows in size, which is reflected in the implementation of Environmental, Social, and Governance performance. (ESG). The study assessed the impact of ESG disclosure on the value of energy sector companies listed on the Indonesian Stock Exchange (BEI) in the period 2019-2022, using panel data regression analysis through EViews 12 software. The results show that ESG disclosure has an impact on the company's value. Statistical tests indicate that the disclosures of ESG have a positive effect on the company's value. However, when the interaction between ESG Disclosure and the size of a company is included in the model, the results show a negative impact. The size of the enterprise has a positive impact on company value but weakens the relationship between the ESG revelation and company value when interacting with ESG.
Downloads
References
Abdi, Y., Li, X., & Càmara-Turull, X. (2022). Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age. Environment, Development and Sustainability, 24(4), 5052–5079. https://doi.org/10.1007/s10668-021-01649-w
Adhi, R. E., & Cahyonowati, N. (2023). Pengaruh Environmental, Social, and Governance Disclosure Terhadap Nilai Perusahaan dengan Ukuran Perusahaan Sebagai Variabel Moderasi (Studi Empiris Perusahaan Non-Keuangan di Bursa Efek Indonesia Tahun 2019-2021). Diponegoro Journal Of Accounting, 12(3), 1–12.
Arofah, S. N., & Khomsiyah. (2023). Pengaruh Good Corporate Governance dan Environmental Social Governance terhadap Nilai Perusahaan dengan Kinerja Keuangan Sebagai Moderasi. Jurnal Informatika Ekonomi Bisnis, 5(1), 125–133. https://doi.org/10.37034/infeb.v5i1.208
Bashatweh, A. D., Abutaber, T. A., AlZu’bi, M. J., KHader, L. F. A., Al-Jaghbir, S. A., & AlZoubi, I. J. (2023). Does Environmental, Social, and Governance (ESG) Disclosure Add Firm Value? Evidence from Sharia-Compliant Banks in Jordan. 585–595. https://doi.org/10.1007/978-3-031-08084-5_42
D’Amato, A., & Falivena, C. (2020). Corporate social responsibility and firm value: Do firm size and age matter? Empirical evidence from European listed companies. Corporate Social Responsibility and Environmental Management, 27(2), 909–924. https://doi.org/10.1002/csr.1855
Dwiastuti, D. S., & Dillak, V. J. (2019). Pengaruh Ukuran Perusahaan, Kebijakan Hutang, dan Profitabilitas Terhadap Nilai Perusahaan. Jurnal ASET (Akuntansi Riset), 11(1), 137–146. https://doi.org/10.17509/jaset.v11i1.16841
Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45–64. https://doi.org/10.1016/j.gfj.2017.03.001
Fauziah, N. D., Toha, M. M., & Prahara, M. R. S. (2021). Bank dan Lembaga Keuangan Syariah. CV Literasi Nusantara Abadi.
Febri Wijaya, M., & Ichsanuddin Nur, D. (2021). Analisis nilai perusahaan pada perusahaan textile dan garmen yang terdaftar di BEI. Jurnal Riset Pendidikan Ekonomi, 6(2), 24–33. https://doi.org/10.21067/jrpe.v6i2.5590
Fuadah, L. L., Mukhtaruddin, M., Andriana, I., & Arisman, A. (2022). The Ownership Structure, and the Environmental, Social, and Governance (ESG) Disclosure, Firm Value and Firm Performance: The Audit Committee as Moderating Variable. Economies, 10(12), 1–16. https://doi.org/10.3390/economies10120314
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, 1–16. https://doi.org/10.1016/j.jcorpfin.2021.101889
Gunarwati, A. M., Maryam, S., & Sudarwati, S. (2020). Struktur Modal Dan Ukuran Perusahaan Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening. (Studi Kasus Pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi Yang Terdaftar Di Bei Periode 2016-2018). Jurnal Ilmiah Edunomika, 4(02). https://doi.org/10.29040/jie.v4i02.1219
Handayati, P., Sumarsono, H., & Narmaditya, B. S. (2022). Corporate Social Responsibility disclosure and Indonesian firm value: The moderating effect of profitability and firm’s size. Journal of Eastern European and Central Asian Research (JEECAR), 9(4), 703–714. https://doi.org/10.15549/jeecar.v9i4.940
Husna, A., & Satria, I. (2019). Effects Of Return On Asset, Debt To Asset Ratio, Current Ratio, Firm Size, And Dividend Payout Ratio On Firm Value. International Journal of Economics and Financial Issues, 9(5), 50–54. https://doi.org/10.32479/ijefi.8595
Jeanice, J., & Kim, S. S. (2023). Pengaruh Penerapan Environmentan, Social, and Governance Terhadap Nilai Perusahaan di Indonesia. Owner, 7(2), 1646–1653. https://doi.org/10.33395/owner.v7i2.1338
Kementerian Lingkungan Hidup dan Kehutanan Republik Indonesia. (2022, December 29). Data Proper 2022. Proper.Menlhk.Go.Id.
Krisnando, K., & Sakti, S. H. (2019). Pengaruh Good Corporate Governance dan Ukuran Perusahaan terhadap Nilai Perusahaan dengan Kinerja Keuangan sebagai Variabel Moderasi. Jurnal Akuntansi Dan Manajemen, 16(01), 73–95. https://doi.org/10.36406/jam.v16i01.268
Kurnia Saputri, C., & Giovanni, A. (2021). The The Effect Of Profitability, Size And Liquidity on Firm Value in Consumer Goods Industry Listed on The Indonesia Stock Exchange (IDX). Journal of Business Management Review, 2(2), 092–106. https://doi.org/10.47153/jbmr22.902021
Lako, A. (2018). Akuntansi Hijau: Isu, Teori, dan Aplikasi (1st ed.). Salemba Empat.
Lutfita, A., & Takarini, N. (2021). The Effect Of Profitability, Firm Size And Capital Structure On Company Value. Procuratio: Jurnal Ilmiah Manajemen , 9(3), 319–329. http://www.ejournal.pelitaindonesia.ac.id/ojs32/index.php/PROCURATIO/index
Mei Yudha, A., Bayu Putra, R., & Hasmaynelis, F. (2022). Analisis Pengaruh Likuiditas, Pertumbuhan Perusahaan, Ukuran Perusahaan Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening. Journal of Innovation Research and Knowledge, 1(12), 1567–1576.
Melinda, A., & Wardhani, R. (2020). The Effect of Environmental, Social, Governance, and Controversies on Firms’ Value: Evidence from Asia. International Symposia in Economic Theory and Econometrics, 147–173. https://doi.org/10.1108/S1571-038620200000027011
Mu’amar Hidayat, D., & Pertiwi, T. K. (2021). The Effect Of Profitability On Stock Price With Company Size As A Modering Variable. Balance: Jurnal Ekonomi, 17(1), 128–137.
Ningsih, W. F., & Rachmawati, R. (2017). Implementasi Green Accounting dalam Meningkatkan Kinerja Perusahaan. JABE (Journal of Applied Business and Economic), 4(2), 149. https://doi.org/10.30998/jabe.v4i2.2142
Ningwati, G., Septiyanti, R., & Desriani, N. (2022). Pengaruh Environment, Social and Governance Disclosure terhadap Kinerja Perusahaan. Goodwood Akuntansi Dan Auditing Reviu, 1(1), 67–78. https://doi.org/10.35912/gaar.v1i1.1500
Nuryono, M., Wijanti, A., & Chomsatu, Y. (2019). Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, Komisaris Independen, Komite Audit, Serta Kulitas Audit Pada Nilai Perusahaan. Jurnal Ilmiah Edunomika, 3(01). https://doi.org/10.29040/jie.v3i01.457
Pustika, T. H., Hariyanto, D., & Safitri, H. (2022). The Effect of DER, Firm Size, and CR on PBV with ROE as an Intervening Variable. Jurnal Manajemen Bisnis, 13(2), 289–305. https://doi.org/10.18196/mb.v13i2.13922
Putri, A. K., Sudarma, M., & Purnomosidhi, B. (2016). Pengaruh Corporate Social Responsibility terhadap Nilai Perusahaan dengan Ukuran Perusahaan dan Jumlah Dewan Komisaris sebagai Variabel Pemoderasi (Studi pada Perusahaan Manufaktur yang terdaftar Bursa Efek Indonesia). Jurnal Aplikasi Manajemen (JAM), 14(2), 344–358. http://dx.doi.org/10.
Raja Ahmad, R. A., Ayob, A. A., Zainon, S., & Probohudono, A. N. (2021). The Influence of Environmental, Social and Governance Reporting on Firm Value: Malaysian Evidence. International Journal of Academic Research in Business and Social Sciences, 11(9). https://doi.org/10.6007/IJARBSS/v11-i9/10877
Rizki, M., & Takarini, N. (2021). Analisis Nilai Perusahaan Pada Subsektor Property Dan Real Estate Yang Terdaftar di Bursa Efek Indonesia (BEI). Jurnal Sosial, Ekonomi, Dan Politik, 2(2), 65–73.
Safriani, M. N., & Utomo, D. C. (2020). Pengaruh Environmental, Social, Governance (Esg) Disclosure Terhadap Kinerja Perusahaan. Diponegoro Journal Of Accounting, 9(3), 1–11. http://ejournal-s1.undip.ac.id/index.php/accounting
Sutihat, A. (2020). Profitabilitas Sebagai Variabel Intervening Yang Mempengaruhi Nilai Perusahaan Perusahaan Properti Dan Real Estate Profitability as an Intervening Variable Affecting Company Value of Property and Real Estate Companies. Jurnal Riset Akuntansi Dan Auditing E, 7(3), 59–70.
Syauqi, A., Yuniningsih, Y., & Pertiwi, T. K. (2022). Measuring Company Value with Intervening Profitability Variables in Companies Listed on the Indonesia Stock Exchange’s LQ-45 Index for the 2018–2021 Period. International Journal of Multidisciplinary Research and Analysis, 05(12). https://doi.org/10.47191/ijmra/v5-i12-41
Toha, M., & Manaku, A. A. C. (2020). Perkembangan Dan Problematika Pasar Modal Syariah Di Indonesia. Al-tsaman: Jurnal Ekonomi dan Keuangan Islam, 2(1), 135-144. Retrieved from https://ejournal.uas.ac.id/index.php/Al-tsaman/article/view/312
Widi, E., Widyastuti, T., & Bahri, S. (2021). Pengaruh Struktur Modal, Likuiditas, Arus Kas Bebas Dan Ukuran Perusahaan Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening. Jurnal Ekobisman, 6(1), 17–34.
Xaviera, A., & Rahman, A. (2023). Pengaruh Kinerja Esg Terhadap Nilai Perusahaan Dengan Siklus Hidup Perusahaan Sebagai Moderasi : Bukti Dari Indonesia. Jurnal Akuntansi Bisnis, 16(2), 226–247. https://doi.org/10.30813/jab.v16
Yip, Y. Y., & Lee, H. H. (2018). Does ESG Disclosure Create Value to Firms? The Malaysian Case. The Journal of Social Sciences Research, SPI6, 515–521. https://doi.org/10.32861/jssr.spi6.515.521
Yuniningsih. (2018). Dasar-dasar Manajemen Keuangan (E. Purwanto, Ed.; 1st ed.). Indomedia Pustaka.
Copyright (c) 2024 Faiz Firdaus Makarim, Tri Kartika Pertiwi, G. Oka Warmana
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.
