Impact of ESG Disclosure Score on Firm Value: Empirical Evidence From ESG Listed Company in Indonesia Stock Exchange

Abstract

The trend in ESG investment was responded to by the Indonesia Stock Exchange, which released four ESG indexes. ESG indexes consist of the companies that have a better concern in ESG. Each ESG index has its positive or negative performance compared to the combined stock index. This research aims to determine the impact of ESG Disclosure on firm value. The sample of this research covers 55 companies that have been listed in the ESG index in the 2017–2021 period. The data is collected from the Bloomberg database and processed with a panel data regression model using Stata 17. The finding of this research is that there is a positive but no significant impact between the ESG Disclosure Score and firm value. This finding will contribute to the previous study about the disclosure information of non-financial information and its impact on the firm’s value in the market.