Analysis of ESG Disclosure on the Firm Value in Banking Sector IDX 2020-2023

Joseph Reynaldo Hutauruk, Rahmiati Rahmiati, Theresia Mentari

Abstract


This study examines the impact of Environmental, Social, and Governance (ESG) disclosure on firm value in the banking sector listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023. Utilizing a quantitative approach, this research employs secondary data collected through purposive sampling, resulting in a sample of 80 banking companies that met specific ESG disclosure and financial reporting criteria. ESG disclosure data were obtained based on the Global Reporting Initiative (GRI) Standards, specifically GRI 300 (Environmental), GRI 400 (Social), and GRI 2 (General Disclosures), while firm value was measured using the Price-to-Book Value (PBV) ratio. Multiple regression analysis was conducted to assess the relationship between ESG disclosure and firm value. The findings reveal that environmental, social, and governance factors do not have a significant effect on firm value. This suggests that ESG disclosure in the Indonesian banking sector has not yet been a primary determinant of firm valuation, potentially due to factors such as limited investor awareness, weak regulatory enforcement, or prevailing market skepticism regarding the financial relevance of ESG initiatives. These results contribute to the existing discourse on sustainable banking by providing empirical evidence on the limited impact of ESG disclosure on firm value within the Indonesian banking sector. Furthermore, this study underscores the importance of regulatory bodies in promoting ESG disclosure as a key performance indicator for banking institutions. Future research could examine moderating factors such as financial performance, risk management strategies, or the effectiveness of corporate governance frameworks in strengthening the relationship between ESG disclosure and firm value. These insights are valuable for investors, policymakers, and banking institutions in optimizing ESG strategies to maximize firm value and ensure sustainable financial growth.

Full Text:

PDF

References


Abdi, Y., Li, X., & Càmara-Turull, X. (2021). 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.

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).

Agus Harjito & Martono (2017). Manajemen Keuangan. Second Edition.

Atahau, A. D. R., & Kausar, M. F. (2022). Sustainability Report terhadap Nilai Perusahaan: Studi Perusahaan yang Terdaftar dalam Sustainability Report Rating. AFRE (Accounting and Financial Review), 5(2), 124–130. https://doi.org/10.26905/afr.v5i2.7810

Brealey, R., Myers, S., & Marcus, A. (2017). Fundamentals of Corporate Finance. McGraw-Hill/Irwin Series in Finance, Insurance, and Real Estate. 9th Edition. Theoretical Economics Letters, 7(6).

Brigham, E. F., & Houston, J. F. (2019). Dasar-Dasar Manajemen Keuangan (Edisi Empat). Jakarta: Salemba Empat.

Cahyandito, Fani. (2010). Corporate Sustainability Reporting – A New Approach for Stakeholder Communication. Available at SSRN: https://ssrn.com/abstract=1670686

Caterina de Lucia, Pasquale Pazienza, & Mark Bartlett. (2020). Does Good ESG Lead to Better Financial Performances by Firms? Machine Learning and Logistic Regression Models of Public Enterprises in Europe. Sustainability, 12(13), 5317. https://doi.org/10.3390/su12135317

Chirsty, E., & Sofie. (2023). Pengaruh Pengungkapan Environmental Social Dan Governance terhadap Nilai Perusahaan. Jurnal Ekonomi Trisakti, 3(2), 3899–3908.

Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. The Academy of Management Review, 20(1), 65–89. https://doi.org/10.2307/258887

Dowling, J., & Pfeffer, J. (1975). Organizational Legitimacy: Social Values and Organizational Behavior. Pacific Sociological Review, 18, 122–136. https://doi.org/10.2307/1388226

Faisal, F., Prastiwi, A., & Yuyetta, E. N. A. (2018). Board Characteristics, Environmental Social Governance Disclosure and Corporate Performance: Evidence from Indonesia Public Listed Companies. The 2018 Fifth International Conference on Governance dan Accountability, 1–12.

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).

Jeanice, J., & Kim, S. S. (2023). Pengaruh Penerapan ESG terhadap Nilai Perusahaan di Indonesia. Owner, 7(2), 1646–1653. https://doi.org/10.33395/owner.v7i2.1338

Kurniawan, T., Sofyani, H., & Rahmawati, E. (2018). Pengungkapan Sustainability Report dan Nilai Perusahaan: Studi Empiris di Indonesia dan Singapura. Kompartemen: Jurnal Ilmiah Akuntansi, 16(1).

Mahfuzhah, A. H. (2022). Pengaruh Environmental Social Governance (ESG) Disclosure Terhadap Nilai Perusahaan (Pada Perusahaan Yang Terdaftar Di IDX ESG Leaders Tahun 2016-2020: Sebelum dan Semasa Pandemi Covid-19) (Doctoral dissertation, STIE Indonesia Banking School).

Melinda, A., & Wardhani, R. (2020). The Effect of Environmental, Social, Governance, and Controversies on Firms’ Value: Evidence from Asia. In International Symposia in Economic Theory and Econometrics (Vol. 27, pp. 147–173). Emerald Publishing.

Nurdin, E., & Cahyandito, M. F. (2006). Pengaruh Kualitas Pengungkapan Sosial dan Lingkungan dalam Laporan Tahunan terhadap Reaksi Investor. Thesis (S2), Universitas Padjajaran.

Oktaviani, A. A., Herawaty, V., Yohana, Y., & Isnaini, N. (2023). Pentingnya Laporan Keberlanjutan Bagi Perbankan di Indonesia. Jurnal Akuntansi Multiparadigma, 14(1), 182–191. https://doi.org/10.21776/ub.jamal.2023.14.1.13

Pohan, Mukmin, Sari, Maya, Munasib, Adi, & Radiman, Radiman. (2020). Determinan Struktur Modal dan Nilai Perusahaan. Jurnal Ilmiah Manajemen dan Bisnis, 21, 105–122. https://doi.org/10.30596/jimb.v21i2.5174

Puspitaningrum, H. Y., & Indriani, A. (2021). Pengaruh Tanggung Jawab Sosial Perusahaan dan Good Corporate Governance terhadap Profitabilitas Perusahaan dengan Ukuran Perusahaan dan Leverage sebagai Variabel Kontrol. Diponegoro Journal of Management, 10(2337–3792), 1–15.

Safriani, M. N., & Utomo, D. C. (2020). Pengaruh Environmental, Social, Governance (ESG) Disclosure terhadap Kinerja Perusahaan.

Sari, Dea L., et al. (2017). Pengaruh Corporate Social Responsibility, Kepemilikan Mayoritas, dan Corporate Governance terhadap Agresivitas Pajak. Jurnal Online Mahasiswa Fakultas Ekonomi Universitas Riau, 4(1), 1813–1827.

Sparta, S., & Ayu, D. (2017). Dampak Environmental Performance dan Environmental Disclosure terhadap Profitabilitas Perusahaan. Jurnal Keuangan dan Perbankan, 13(1), 35–54. https://doi.org/10.35384/jkp.v13i1.28

Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010

Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Alfabeta: Bandung.

Tarigan, J., & Semuel, H. (2015). Pengungkapan Sustainability Report dan Kinerja Keuangan. Jurnal Akuntansi dan Keuangan, 16(2), 88–101. https://doi.org/10.9744/jak.16.2.88-101




DOI: https://doi.org/10.26618/inv.v7i1.16941

Refbacks

  • There are currently no refbacks.


 

Flag Counter

 

Creative Commons License

Invoice : Jurnal Ilmu Akuntansi Is Licenced Under a Creative Commons Attribution-Noncommercial-Noderivatives 4.0 International License

toto macau 4d