THE EFFECT OF ENVIROMENTAL, SOCIAL, AND GOVERNANCE (ESG) SCORES ON FIRM VALUE WITH FIRM SIZE MODERATING VARIABLE

Abstract

This research seeks to analyze how Environmental, Social, and Governance (ESG) scores effect firm value, incorporating firm size as a moderating aspect. ESG is an crucial indicator in assessing company sustainability and social responsibility, which has more and more attracted the attention of investors and stakeholders. This research employed a quantitative technique the usage of secondary information from financial and sustainability reports of groups listed at the Indonesia inventory trade (IDX) for the period 2021–2023. The sample changed into selected the use of purposive sampling and consisted of forty five companies that met the ESG disclosure criteria based totally on Bloomberg information. company value turned into measured the usage of Tobin’s Q ratio, whilst ESG rankings were divided into three dimensions: environmental, social, and governance. statistics analysis changed into performed the usage of a couple of linear regression and Moderated Regression analysis (MRA) with SPSS model 30. The effects suggest that environmental, social, and governance scores haven't any good sized partial impact on company value. but, employer size is verified to slight the effect of governance score on firm value. these findings spotlight that effective ESG implementation calls for ok assets, that are more likely available to huge groups, consequently allowing them to gain more benefits from ESG adoption in improving firm fee.