The Effect of ESG Disclosure on Firm Value: The Moderating Role of The Reporting Format

Abstract

This study examines the effect of Environmental, Social, and Governance (ESG) disclosure on firm value by incorporating reporting format as a moderating variable. This study uses a quantitative approach to investigate mining companies listed on the Indonesia Sharia Stock Index (ISSI) from 2020 to 2024. The analysis in this study employs a Moderated Regression Analysis (MRA) approach, which is used to assess the direct effect of ESG disclosure on company value, considering the moderation of the reporting format. The results indicate that ESG disclosure has a positive and statistically significant impact on firm value. The Reporting Format can moderate the relationship between ESG and company value and the relationship between ESG Disclosure and Firm Value remains significant and positive. Theoretically, this study highlights that the reporting format influences market perception, while practically, it supports regulators in strengthening the quality of sustainability reporting.