ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) DISCLOSURE ON CORPORATE VALUE AND MODERATED BY PROFIT GROWTH IN THE LISTED BANKING SECTOR ON THE INDONESIA STOCK EXCHANGE (2022-2025)
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1.
Universitas Harapan Medan
Description
The development of Environmental, Social, and Governance (ESG) Disclosure practices is increasingly important in the banking sector because it is not only related to corporate transparency and sustainability but also can influence investor perceptions of corporate value. This study aims to analyze the influence of Environmental, Social, and Governance (ESG) Disclosure on corporate value and analyze the role of profit growth in moderating this relationship in banking sector companies listed on the Indonesia Stock Exchange for the period 2022–2025. This study uses a quantitative approach with secondary data obtained from annual reports and corporate sustainability reports. The sample was determined using a purposive sampling technique and obtained 27 banking companies with an observation period of four years. Data analysis was conducted using panel data regression with the help of EViews 12 and Moderated Regression Analysis (MRA). The results show that ESG disclosure has a positive and significant effect on firm value. Profit growth also has a positive and significant effect on firm value. Furthermore, profit growth moderates the relationship between ESG disclosure and firm value by strengthening this positive effect. The findings of this study indicate that ESG disclosure supported by strong profit growth can increase investor confidence and contribute significantly to increasing the value of banking companies.
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References
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