PENGUNGKAPAN ENVIRONMENT, SOCIAL, DAN GOVERNANCE (ESG) UNTUK MENCIPTAKAN NILAI PERUSAHAAN MELALUI PENINGKATAN KINERJA KEUANGAN

Abstract

Three key components of a sustainability report are environmental, social, and governance (ESG) factors, whose disclosure can benefit both companies and stakeholders, thereby enhancing financial performance and firm value. This study aims to examine the effect of ESG disclosure on firm value, the effect of ESG disclosure on financial performance, the effect of financial performance on firm value, and the mediating role of financial performance in the relationship between ESG disclosure and firm value. This research focuses on 18 companies listed in the ESG Leader (ESGL) Index of the Indonesia Stock Exchange (IDX) from 2020 to 2023. The analysis employs path analysis. The findings reveal that ESG disclosure has a positive and significant effect on firm value. However, ESG disclosure does not affect financial performance, and financial performance also does not influence firm value. Additionally, the results indicate that financial performance does not mediate the relationship between ESG disclosure and firm value.