Analyzing Effect of Sustainability Disclosure on Financial Metric of State-Run Firms: Evidence from Indonesia

Abstract

This study analyzed the impact of ESG disclosure on financial performance in Indonesian state-owned enterprises from 2017-2022 using multiple regression on data from 18 SOEs. Environmental and governance transparency demonstrated significant positive links with market valuation although no associations with accounting profitability emerged. Qualitative gains for reputation-building indicate integrated reporting remains imperative despite cost-benefit uncertainties from nascent adoption. While exploratory, insights advise strategic transitions embedding ethics equitably with tools to nurture welfare. Beyond mandated disclosures, purpose driven development demands collective advancement of contextual priorities balancing profits and people.