Corporate Governance, ESG Disclosure, and Firm Value: Evidence from Public Companies in Indonesia

Dian Permata Sari; Muhammad Fikri; Rina Kartika; Nattapat Tanwattana

doi:10.70716/ecoma.v3i2.235

Authors

Dian Permata Sari Program Studi Akuntansi, Universitas Indonesia
Muhammad Fikri Program Studi Akuntansi, Universitas Indonesia
Rina Kartika Program Studi Manajemen Keuangan, Universitas Sebelas Maret
Nattapat Tanwattana Department of Accounting and Finance, Chulalongkorn University

DOI:

https://doi.org/10.70716/ecoma.v3i2.235

Keywords:

Corporate Governance, ESG Disclosure, Firm Value, Tobin’s Q, Indonesia, IDX

Abstract

This study examines the influence of corporate governance and Environmental, Social, and Governance (ESG) disclosure on firm value in publicly listed companies in Indonesia. The research utilizes a quantitative approach with secondary data derived from annual and sustainability reports of 120 non-financial companies listed on the Indonesia Stock Exchange (IDX) between 2018 and 2022. Corporate governance is measured using board characteristics, including board size, independence, and gender diversity, while ESG disclosure is assessed through a modified GRI-based content analysis index. Firm value is proxied by Tobin’s Q. The results of panel data regression analysis indicate that board independence and ESG disclosure have a significant positive impact on firm value, while board size shows a negative but insignificant effect. These findings suggest that strong governance structures and transparent ESG practices contribute to market-based performance and investor confidence. The study provides theoretical contributions to stakeholder theory and practical implications for corporate policy-makers and regulators in emerging markets.

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