The Effect of Sustainability Reporting Disclosure on Company Value Moderated by Investment Opportunity Set

Abstract

This study aims to examine the influence of sustainability reporting, namely the disclosure of economic, environmental, and social performance, on the value of a company. The present investigation also explores the presence of a moderating variable, specifically the investment opportunity set, that functions to moderate the association between sustainability reporting disclosure and company value. Companies in the energy sector that were listed on the Indonesia Stock Exchange in 2021–2022 served as the study object. Quantitative approaches are employed in this study. The research sample was determined using a purposive sampling methodology, which relied on secondary data. This method resulted in a sample size of 82. Smartpls 3.0 is the program that processed the data for this investigation. The results showed there is no impact on company value from the disclosure of social, environmental, and economic performance in sustainability reporting. While it doesn't impact the disclosure of environmental performance on company value, the existence of an investment opportunity set can moderate the relationship between the economic and social performance disclosure in sustainability reporting.