Apakah Pengungkapan ESG Penting Bagi Investor?
DOI:
https://doi.org/10.22219/jrak.v14i3.33033Keywords:
Environmental Disclosure, Firm Value, Governance Disclosure, Social DisclosureAbstract
Purpose: This study examines the significance of ESG disclosure for investors as reflected in the company value of Sharia companies listed on the IDX.
Methodology/approach: This study analyses listed Sharia companies’ ESG index on the IDX from 2020 to 2022 with a study sample including 146 observations. A multiple linear regression approach is employed to test the hypothesis.
Findings: The results show that environmental disclosure does not affect firm value, while the social disclosure aspect shows a significant positive effect. However, the interesting part is that governance disclosure negatively and significantly affects firm value.
Practical implications: Sharia companies need to increase their report on social aspects to gain investor support, while it is necessary to be careful in increasing governance disclosure. Companies must pay attention to their financial structures, they must comply with Sharia principles and not decrease the firm value.
Originality/value: This study was conducted to bridge the research gap in previous literature regarding the relationship between partial ESG factors and the value of Sharia companies in Indonesia.
Downloads
References
Abdullah, M. (2018). Waqf, Sustainable Development Goals (SDGs) and maqasid al-shariah. International Journal of Social Economics, 45(1), 158–172. https://doi.org/10.1108/IJSE-10-2016-0295
Abdullah, M. (2020). Reflection of Maqāṣid al-Sharī’ah in the classical Fiqh al - Awqāf . Islamic Economic Studies, 27(2), 79–90. https://doi.org/10.1108/ies-06-2019-0011
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
Adler, C., Hirsch Hadorn, G., Breu, T., Wiesmann, U., & Pohl, C. (2018). Conceptualizing the transfer of knowledge across cases in transdisciplinary research. Sustainability Science, 13(1), 179–190. https://doi.org/10.1007/s11625-017-0444-2
Amina Buallay. (2019). Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), 98–115.
Atan, R., Alam, M. M., Said, J., & Zamri, M. (2018). The impacts of environmental, social, and governance factors on firm performance: Panel study of Malaysian companies. Management of Environmental Quality: An International Journal, 29(2), 182–194. https://doi.org/10.1108/MEQ-03-2017-0033
Buallay, A. (2019). Between cost and value: Investigating the effects of sustainability reporting on a firm’s performance. Journal of Applied Accounting Research, 20(4), 481–496. https://doi.org/10.1108/JAAR-12-2017-0137
Bursa Efek Indonesia. (2022). Indeks Berbasis ESG. https://www.idx.co.id/id/data-pasar/data-saham/indeks-saham/
Bursa Efek Indonesia. (2023). Jumlah Perusahaan Syariah di Bursa Efek Indonesia. https://www.idx.co.id/id/idx-syariah/indeks-saham-syariah/
Chouaibi, Y., & Zouari, G. (2022). The effect of corporate social responsibility practices on real earnings management: evidence from a European ESG data. International Journal of Disclosure and Governance, 19(1), 11–30. https://doi.org/10.1057/s41310-021-00125-1
Chung, R., Bayne, L., & Birt, J. (2023). The impact of environmental, social and governance (ESG) disclosure on firm financial performance: evidence from Hong Kong. Asian Review of Accounting, November 2021. https://doi.org/10.1108/ARA-07-2022-0165
Clark, G. L., Feiner, A., & Viehs, M. (2014). From the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance. SSRN Electronic Journal, March. https://doi.org/10.2139/ssrn.2508281
De Lucia, C., Pazienza, P., & Bartlett, M. (2020). Does good ESG lead to better financial performances by firms? Machine learning and logistic regression models of public enterprises in Europe. Sustainability (Switzerland), 12(13), 1–26. https://doi.org/10.3390/su12135317
Deegan, C. M. (2019). Legitimacy theory: Despite its enduring popularity and contribution, time is right for a necessary makeover. Accounting, Auditing and Accountability Journal, 32(8), 2307–2329. https://doi.org/10.1108/AAAJ-08-2018-3638
Delfina Harahap, C., Juliana, I., & Fitria Lindayani, F. (2018). IMAR Indonesian Management and Accounting Research The Impact of Environmental Performance and Profitability on Firm Value. Indonesian Management and Accounting Research, 17(1), 53–70. http://www.trijurnal.lemlit.trisakti.ac.id/index.php/imar
Eng, L. L., Fikru, M., & Vichitsarawong, T. (2022). Comparing the informativeness of sustainability disclosures versus ESG disclosure ratings. Sustainability Accounting, Management and Policy Journal, 13(2), 494–518. https://doi.org/10.1108/SAMPJ-03-2021-0095
Faizah, S. N., & Ediraras, D. T. (2021). Mediation of Profitability on Corporate Social Responsibility To Firm Value. Jurnal Riset Akuntansi Kontemporer, 13(2), 51–58. https://doi.org/10.23969/jrak.v13i2.4423
Freeman, R. E. (2015). Stakeholder Theory. Encyclopedia of Management Theory, 1–6. https://doi.org/https://doi.org/10.1002/9781118785317
Habib, A. M. (2022). Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States. Financial Markets, Institutions and Risks, 6(3), 18–25. https://doi.org/10.21272/fmir.6(3).18-25.2022
Haj-Salem, I., Damak Ayadi, S., & Hussainey, K. (2020). The joint effect of corporate risk disclosure and corporate governance on firm value. International Journal of Disclosure and Governance, 17(2–3), 123–140. https://doi.org/10.1057/s41310-020-00079-w
Hambali, A., & Adhariani, D. (2023). Sustainability performance at stake during COVID-19 pandemic? Evidence from Sharia-compliant companies in emerging markets. Journal of Islamic Accounting and Business Research, 14(1), 80–99. https://doi.org/10.1108/JIABR-01-2022-0014
Hamidi, M. L., & Worthington, A. C. (2021). Islamic banking sustainability: theory and evidence using a novel quadruple bottom line framework. International Journal of Bank Marketing, 39(5), 751–767. https://doi.org/10.1108/IJBM-06-2020-0345
Handayati, P., Sumarsono, H., & Narmaditya, B. S. (2022). Corporate Social Responsibility Disclosure and Indonesian Firm Value: the Moderating Effect of Profitability and Firm’S Size. Journal of Eastern European and Central Asian Research, 9(4), 703–714. https://doi.org/10.15549/jeecar.v9i4.940
Hermawan, S., Sari, Y. A., Biduri, S., Rahayu, D., & Rahayu, R. A. (2023). Corporate Social Responsibility, Firm Value, and Profitability: Evidence From Pharmaceutical Companies in Indonesia and Malaysia. International Journal of Professional Business Review, 8(2), 1–24. https://doi.org/10.26668/businessreview/2023.v8i2.625
Hörisch, J., Schaltegger, S., & Freeman, R. E. (2020). Integrating stakeholder theory and sustainability accounting: A conceptual synthesis. Journal of Cleaner Production, 275, 124097. https://doi.org/10.1016/j.jclepro.2020.124097
Igbinovia, I. M., & Agbadua, B. O. (2023). Environmental, Social, and Governance (ESG) Reporting and Firm Value in Nigeria Manufacturing Firms: The Moderating Role of Firm Advantage. Jurnal Dinamika Akuntansi Dan Bisnis, 10(2), 149–162. https://doi.org/10.24815/jdab.v10i2.30491
Jan, A., Mata, M. N., Albinsson, P. A., Martins, J. M., Hassan, R. B., & Mata, P. N. (2021). Alignment of islamic banking sustainability indicators with sustainable development goals: Policy recommendations for addressing the covid-19 pandemic. Sustainability (Switzerland), 13(5), 1–38. https://doi.org/10.3390/su13052607
Jensen, M. C., & Meckling, W. H. (2019). Theory of the firm: Managerial behavior, agency costs and ownership structure. Corporate Governance: Values, Ethics and Leadership, 3(4), 77–132. https://doi.org/10.4159/9780674274051-006
Liou, R. S., Ting, P. H., & Chen, Y. Y. (2023). The cost of foreign ownership: Voluntary sustainability reporting and financial performance in an emerging economy. Cross Cultural and Strategic Management, 30(3), 581–612. https://doi.org/10.1108/CCSM-09-2021-0165
López-Concepción, A., Gil-Lacruz, A. I., & Saz-Gil, I. (2022). Stakeholder engagement, Csr development and Sdgs compliance: A systematic review from 2015 to 2021. Corporate Social Responsibility and Environmental Management, 29(1), 19–31. https://doi.org/10.1002/csr.2170
Marwan, S., Haneef, A., Adawiah, E., & Ismail, S. (2020). Achieving the Maqasid of Islamic Finance through Social Impact Bonds (SIB) and Sustainable and Responsible Investment (SRI) Sukuk. 152–159. https://doi.org/10.5220/0010118501520159
Melinda, A., & Wardhani, R. (2020). the Effect of Environmental, Social, Governance, and Controversies on Firms’ Value: Evidence From Asia. In International Symposia in Economic Theory and Econometrics (Vol. 27, pp. 147–173). Emerald Publishing Limited. https://doi.org/10.1108/S1571-038620200000027011
Merdeka.com. (2022). Arah Kebijakan Baru OJK Soal Pengembangan Keuangan Berkelanjutan. 1.
Morgan Stanley Capital Internasional (MSCI). (2022). Perbandingan Perusahaan yang Terindeks ESG dengan perusahaan yang Tidak Terindeks ESG. https://www.msci.com/real-time-index-data-search
Mukhtaruddin, M., Ubaidillah, U., Dewi, K., Hakiki, A., & Nopriyanto, N. (2019). Good Corporate Governance, Corporate Social Responsibility, Firm Value, and Financial Performance as Moderating Variable. Indonesian Journal of Sustainability Accounting and Management, 3(1), 55. https://doi.org/10.28992/ijsam.v3i1.74
Ningtyas, A. A., & Triyanto, D. N. (2019). The Effect of Environmental Performance and Environmental Disclosure on Company Profitability (Empirical Study of Mining Companies Listed on the IDX in 2015-2017). JASa (Journal of Accounting, Auditing and Accounting Information Systems), 3(1), 14–26.
Otoritas Jasa Keuangan. (2017). Peraturan Otoritas Jasa Keuangan (POJK) Nomor 51/POJK.03/2017 Tentang Penerapan Keuangan Berkelanjutan bagi lembaga jasa keuangan, emiten, dan perusahaan publik.
Perwitasari, D., Setiawan, D., Nurrahmawati, A., & Rahmawati, I. P. (2022). Firm Performance during COVID-19 Pandemic: Does Ownership Identity Matter? Evidence from Indonesia. Journal of Risk and Financial Management, 15(10). https://doi.org/10.3390/jrfm15100444
Rahmawati, A., Roekhudin, R., & Prastiwi, A. (2021). Effect of good corporate governance and corporate social responsibility on firm value moderate by profitability. International Journal of Research in Business and Social Science (2147- 4478), 10(4), 59–66. https://doi.org/10.20525/ijrbs.v10i4.1194
Ramadhan, M. A., Mulyany, R., & Mutia, E. (2023). The irrelevance of R&D intensity in the ESG disclosure? Insights from top 10 listed companies on global Islamic indices. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2023.2187332
Ridwan, R., & Mayapada, A. G. (2022). Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks? Journal of Sustainable Finance and Investment, 12(2), 299–318. https://doi.org/10.1080/20430795.2020.1749819
Romli, R., & Zaputra, A. R. R. (2022). Pengaruh Implementasi Green Banking, Corporate Social Responsibility terhadap Nilai Perusahaan pada Perusahaan Perbankan yang terdaftar di BEI. Portofolio: Jurnal Ekonomi, Bisnis, Manajemen, Dan Akuntansi, 18(2), 36–59. https://doi.org/10.54783/portofolio.v18i2.214
Saini, M., Aggarwal, V., Dhingra, B., Kumar, P., & Yadav, M. (2023). ESG and financial variables: a systematic review. International Journal of Law and Management. https://doi.org/10.1108/IJLMA-02-2023-0033
Sustainability Development Reporting (SDR). (2022). Peringkat SDGs Di Dunia. https://dashboards.sdgindex.org/rankings
Tawfik, O. I., & Elmaasrawy, H. E. (2024). Effect of Shariah compliance on financing decisions: empirical evidence from GCC. Journal of Islamic Accounting and Business Research, 15(1), 196–223. https://doi.org/10.1108/JIABR-07-2022-0165
Ullah, S., Haroon, M., Hussain, S., & Rehman, A. U. (2023). Islamic labelling and corporate governance: a perspective of Shariah compliance firms. Journal of Islamic Accounting and Business Research, 14(6), 849–867. https://doi.org/10.1108/JIABR-03-2021-0108
Wahab, M. Z. H., & Naim, A. M. (2023). Developing Islamic sustainable and responsible investment criteria: an overview. International Journal of Ethics and Systems, 39(3), 648–658. https://doi.org/10.1108/IJOES-06-2021-0120
Wang, N., Pan, H., Feng, Y., & Du, S. (2023). How do ESG practices create value for businesses? Research review and prospects. Sustainability Accounting, Management and Policy Journal. https://doi.org/10.1108/SAMPJ-12-2021-0515
Zhou, G., Liu, L., & Luo, S. (2022). Sustainable development, ESG performance and company market value: Mediating effect of financial performance. Business Strategy and the Environment, 31(7), 3371–3387. https://doi.org/10.1002/bse.3089
Published
Issue
Section
License
Copyright (c) 2024 Dedek Saripah, Yossi Diantimala, Muhammad Arfan
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).