The Effect Of Esg Disclosure On Firm Value (Study Of Industrial Sector Companies Listed On The Indonesia Stock Exchange In 2021-2024)

Abstract

This study aims to analyze the effect of Environmental, Social, and Governance (ESG) disclosure on firm
value in industrial sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021-2024
period. ESG is an important indicator in assessing a company's sustainability commitment, while
company value reflects investors' perceptions of the company's performance and prospects. This type of
research is quantitative, using secondary data obtained from the company's Annual Report and
Sustainability Report. The sample was selected using purposive sampling method, with a total of 33
observation data that had been filtered from outliers. The analysis technique used is multiple linear
regression processed using IBM SPSS Statistics version 27. The results showed that partially,
Environmental disclosure has a positive and significant effect on firm value, Social disclosure has no
significant effect on firm value, and Governance disclosure has a negative and significant effect on firm
value. Simultaneously, the three ESG disclosure variables have a significant effect on firm value. This
study supports the importance of integrated ESG disclosure in shaping investor perceptions and driving
long-term firm value.