THE EFFECT OF ESG DISCLOSURE AND COMPANY SIZE ON COMPANY VALUE, WITH FINANCIAL PERFORMANCE AS A MODERATING FACTOR

Dela Nur Azizah, Moh. Ubaidillah, Heidy Paramitha Devi

Abstract


This quantitative study investigates the impact of Environmental, Social, and Governance (ESG) disclosure and firm size on firm valuation, incorporating financial performance as a moderating variable within the Consumer Non-Cyclicals sector on the Indonesia Stock Exchange from 2021 to 2025. Secondary data extracted from annual reports, sustainability disclosures, and financial statements served as the primary empirical foundation. From an initial pool of 84 companies, purposive sampling identified 80 qualified entities, yielding 400 preliminary observations. Following data processing and outlier elimination, 239 observations were retained for final evaluation. Data analysis was executed via IBM SPSS Statistics 27, encompassing descriptive statistics, classical assumption testing, Moderated Regression Analysis (MRA), t-tests, F-tests, and coefficient of determination assessments. The findings demonstrate that both ESG disclosure and firm size exert a significant negative effect on firm value. Furthermore, financial performance significantly moderates the relationship between ESG disclosure and firm value, as well as the link between firm size and firm value.

Keywords: ESG Disclosure, Firm Size, Financial Performance, Firm Value.


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References


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