Environmental, Social, And Governance (ESG) Disclosure, Intellectual Capital And Firm Value: The Moderating Role Of Financial Performance
DOI:
https://doi.org/10.22219/jrak.v14i1.32849Keywords:
Environmental, Social, and Governance Disclosure, Financial Performance, Firm Value, Intellectual CapitalAbstract
Purpose: This study aims to empirically examine the effect of Environmental, Social, and Governance (ESG) disclosure and intellectual capital on firm value moderated by financial performance.
Methodology/approach: This study uses a quantitative approach with a positivism paradigm. The sample in the study was 125 observations from 25 energy sector companies listed on the Indonesia Stock Exchange during the 2018-2022 period. The data analysis technique in this study uses Hierarchy Regression Analysis through the use of Multiple Regression Analysis and Moderated Regression Analysis (MRA).
Findings: The results showed that Environmental, Social, and Governance (ESG) disclosure has no effect on firm value, while intellectual capital has a positive effect on firm value. This study also shows that financial performance is able to moderate by strengthening the relationship between Environmental, Social, and Governance (ESG) disclosure and intellectual capital on firm value.
Practical implications: Companies should strengthen and pay more attention to Environmental, Social, and Governance (ESG) disclosure to fulfill the needs of interested parties. Investors should also consider more financial and non-financial information in assessing companies for decision making.
Originality/value: This study is a development of previous research that examines separately the effect of Environmental, Social, and Governance (ESG) disclosure and intellectual capital on firm value. This study also adds financial performance variables with Return on Assets measurement as a moderating variable.
Downloads
References
Abdi, Y., Li, X., & Càmara-Turull, X. (2022). Exploring The Impact of Sustainability (ESG) Disclosure on Firm Value and Financial Performance (FP) in Airline Industry: The Moderating Role of Size and Age. Environment, Development and Sustainability, 24, 5052–5079. https://doi.org/10.1007/s10668-021-01649-w
Aboud, A., & Diab, A. (2018). The Impact of Social, Environmental and Corporate Governance Disclosures on Firm Value: Evidence from Egypt. Journal of Accounting in Emerging Economies, 8(4), 442–458. https://doi.org/10.1108/JAEE-08-2017-0079
Arifianti, N. P., & Widianingsih, L. P. (2023). Kualitas Pengungkapan SDGs: Apakah Berpengaruh terhadap Kinerja Keuangan Perusahaan Sektor Energi dan Bahan Baku di Indonesia? Jurnal Reviu Akuntansi Dan Keuangan, 13(2), 269–288. https://doi.org/10.22219/jrak.v13i2.26629
Aryanti, N. P. I., & Mertha, M. (2022). Intellectual Capital, Profitabilitas, Ukuran Perusahaan Dan Nilai Perusahaan. E-Jurnal Akuntansi, 32(11), 3348–3359. https://doi.org/10.24843/eja.2022.v32.i11.p11
Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG Performance on Firm Value and Profitability. Borsa Istanbul Review, 22-S2, S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
BGK Foundation. (2020). BGK Foundation ESG Indeks. BGK Foundation. https://bgkesgindex.com/id
CNBC Indonesia. (2020). Gegara Covid, Investasi Sektor Energi RI Drop 31% ke Rp 310 T. https://www.cnbcindonesia.com/news/20201214195220-4-209051/gegara-covid-investasi-sektor-energi-ri-drop-31-ke-rp-310-t
CNBC Indonesia. (2023). Ini Sektor Paling Moncer dan Menderita di Semester 1 2023. CNBC Indonesia. https://www.cnbcindonesia.com/market/20230628201618-17-450008/ini-sektor-paling-moncer-dan-menderita-di-semester-1-2023
Damayanthi, I. G. A. E. (2019). Fenomena Faktor yang Mempengaruhi Nilai Perusahaan. Jurnal Ilmiah Akuntansi Dan Bisnis (JIAB), 14(2), 208–218. https://doi.org/10.24843/jiab.2019.v14.i02.p06
Databoks. (2022). Saham Energi Paling Bersinar sampai Pertengahan Mei 2022. https://databoks.katadata.co.id/datapublish/2022/05/19/saham-energi-paling-bersinar-sampai-pertengahan-mei-2022
Deegan, C. (2014). Financial Accounting Theory. McGraw-Hill: Australia.
Deniswara, K., Uyuun, R. M. F., Lindawati, A. S. L., & Willnaldo, W. (2019). Intellectual Capital Effect, Financial Performance, and Firm Value: An Empirical Evidence from Real Estate Firm, in Indonesia. The Winners, 20(1), 49–60. https://doi.org/10.21512/tw.v20i1.5500
Edvinsson, L., & Malone, M. S. (1997). Intellectual Capital: Realizing Your Company’s True Value by Finding Its Hidden Brainpower. New York: HarperCollins.
Faisal, F., Prastiwi, A., & Yuyetta, E. N. A. (2018). Board Characteristics, Environmental Social Governance Disclosure And Corporate Performance: Evidence From Indonesia Public Listed Companies. The 2018 Fifth International Conference on Governance Dan Accountability, 1–12.
Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG Performance and Firm Value: The Moderating Role of Disclosure. Global Finance Journal, 38, 45–64. https://doi.org/10.1016/j.gfj.2017.03.001
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman.
Ihsani, A. N., Nidar, S. R., & Kurniawan, M. (2023). Does ESG Performance Affect Financial Performance Evidence from Indonesia. Wiga : Jurnal Penelitian Ilmu Ekonomi, 13(1), 46–61. https://doi.org/10.30741/wiga.v13i1.968
Indrawati, N., L, A. A., . R., & Mutia Basri, Y. (2023). The Effect of Intellectual Capital and Corporate Governance on Company Performance and its Impact on Firm Value. KnE Social Sciences, 2023, 217–232. https://doi.org/10.18502/kss.v8i13.13759
Indriastuti, M., & Kartika, I. (2021). Improving Firm Value through Intellectual Capital, Good Corporate Governance and Financial Performance. Jurnal Ilmiah Akuntansi, 6(1), 85–101. https://doi.org/10.23887/jia.v6i1.30993
Investor.id. (2023). IHSG Terperosok, Saham Sektor Energi Penyumbang Terbesar. Investor.Id. https://investor.id/market/331106/ihsg-terperosok-saham-sektor-energi-penyumbang-terbesar
Irdiana, S., Darmawan, K., Ariyono, K. Y., & Khairullah, M. N. (2022). The Effect of Financial Performance on Firm Value with Dividend Policy as a Mediation Variable. Enrichment: Journal of Management, 12(5), 3494–3505. https://doi.org/10.35335/enrichment.v12i5.857
Kementerian ESDM. (2022). Sektor Energi Indonesia Masih Menarik Bagi Investor. https://migas.esdm.go.id/post/read/sektor-energi-indonesia-masih-menarik-bagi-investor
Kurniansyah, F., Saraswati, E., & Rahman, A. F. (2021). Corporate Governance, Profitability, Media Exposure, and Firm Value: the Mediation Role of Environmental Disclosure. Jurnal Minds: Manajemen Ide Dan Inspirasi, 8(1), 69–88. https://doi.org/10.24252/minds.v8i1.20823
Laksmi, A. A. S. D., & Wirawati, N. G. P. (2022). Profitabilitas, Good Corporate Governance, Pengungkapan Corporate Social Responsibility dan Nilai Perusahaan. E-Jurnal Akuntansi, 32(4), 1046–1056. https://doi.org/10.24843/eja.2022.v32.i04.p16
Lamba, A. B., & Atahau, A. D. R. (2022). Pengaruh Leverage Terhadap Nilai Perusahaan yang Dimediasi Profitabilitas. Reviu Akuntansi Dan Bisnis Indonesia, 6(1), 16–31. https://doi.org/10.18196/rabin.v6i1.12698
Li, Y., Gong, M., Zhang, X. Y., & Koh, L. (2018). The Impact of Environmental, Social, and Governance Disclosure on Firm Value: The Role of CEO Power. The British Accounting Review, 50(1), 60–75. https://doi.org/10.1016/j.bar.2017.09.007
Liputan6. (2021). Indeks Sektor Saham Energi Tergelincir pada Awal 2021, Ini Kata Analis. https://www.liputan6.com/saham/read/4516196/indeks-sektor-saham-energi-tergelincir-pada-awal-2021-ini-kata-analis?page=2
Nguyen, A. H., & Doan, D. T. (2020). The Impact of Intellectual Capital on Firm Value: Empirical Evidence from Vietnam. International Journal of Financial Research, 11(4), 74–85. https://doi.org/10.5430/ijfr.v11n4p74
Nursetya, R. P., & Nur Hidayati, L. (2021). How Does Firm Size and Capital Structure Affect Firm Value? Journal of Management and Entrepreneurship Research, 1(2), 67–76. https://doi.org/10.34001/jmer.2020.12.01.2-7
Pangestuti, D. C., Muktiyanto, A., Geraldina, I., & Darmawan. (2022). Role of Profitability, Business Risk, and Intellectual Capital in Increasing Firm Value. Journal of Indonesian Economy and Business, 37(3), 311–338. https://doi.org/10.22146/jieb.v37i3.3564
Prayogo, E., Handayani, R., & Meitiawati, T. (2023). ESG Disclosure dan Retention Ratio terhadap Nilai Perusahaan dengan Ukuran Perusahaan sebagai Pemoderasi. Reviu Akuntansi Dan Bisnis Indonesia, 7(2), 368–379. https://doi.org/10.18196/rabin.v7i2.18212
Rosyid, M. F., Saraswati, E., & Ghofar, A. (2022). Firm Value: CSR Disclosure, Risk Management and Good Corporate Governance Dimensions. Jurnal Reviu Akuntansi Dan Keuangan, 12(1), 186–209. https://doi.org/10.22219/jrak.v11i3.20367
Ruan, L., & Liu, H. (2021). Environmental, Social, Governance Activities and Firm Performance: Evidence from China. Sustainability (Switzerland), 13(2), 767. https://doi.org/10.3390/su13020767
Salvi, A., Vitolla, F., Giakoumelou, A., Raimo, N., & Rubino, M. (2020). Intellectual Capital Disclosure in Integrated Reports: The Effect on Firm Value. Technological Forecasting and Social Change, 160, 120228. https://doi.org/10.1016/j.techfore.2020.120228
Stewart, T. A. (1997). Intellectual Capital. London: Nicholas Brealey Publishing.
Sumarno, D. C., Andayani, W., & Prihatiningtias, Y. W. (2023). The Effect of Environmental, Social and Governance (ESG) Assessment on Firm Value with Profitability as a Mediating Variable. Asia-Pacific Management and Business Application, 12(1), 55–64. https://doi.org/10.21776/ub.apmba.2023.012.01.4
Triyani, A., Setyahuni, S. W., & Kiryanto, K. (2020). The Effect of Environmental, Social and Governance (ESG) Disclosure on Firm Performance: The Role of Ceo Tenure. Jurnal Reviu Akuntansi Dan Keuangan, 10(2), 261. https://doi.org/10.22219/jrak.v10i2.11820
Ulum, I. (2017). Intellectual Capital (Model Pengukuran, Framework Pengungkapan, dan Kinerja Organisasi). Malang: Penerbit Universitas Muhammadiyah Malang.
Velte, P. (2017). Does ESG Performance Have an Impact on Financial Performance? Evidence from Germany. Journal of Global Responsibility, 8(2), 169–178. https://doi.org/10.1108/JGR-11-2016-0029
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Widya Cita Pramesti, Made Sudarma, Abdul Ghofar
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Jurnal Reviu Akuntansi dan Keuangan is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
