Proceedings of the 6th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2023, 13-14 September 2023, Bandar Lampung, Indonesia

Research Article

Environmental Social Governance Disclosure and Firm Value: How Does ESG Disclosure Impact Firm Value?

Download404 downloads
  • @INPROCEEDINGS{10.4108/eai.13-9-2023.2341101,
        author={Nadya  Novita and Lindrianasari  Lindrianasari and Fitra  Dharma},
        title={Environmental Social Governance Disclosure and Firm Value: How Does ESG Disclosure Impact Firm Value? },
        proceedings={Proceedings of the 6th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2023, 13-14 September 2023, Bandar Lampung, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2023},
        month={12},
        keywords={esg disclosure esg score and firm value},
        doi={10.4108/eai.13-9-2023.2341101}
    }
    
  • Nadya Novita
    Lindrianasari Lindrianasari
    Fitra Dharma
    Year: 2023
    Environmental Social Governance Disclosure and Firm Value: How Does ESG Disclosure Impact Firm Value?
    ICEBE
    EAI
    DOI: 10.4108/eai.13-9-2023.2341101
Nadya Novita1,*, Lindrianasari Lindrianasari1, Fitra Dharma1
  • 1: Universitas Lampung
*Contact email: novitanadya123@gmail.com

Abstract

This article offers a comprehensive overview of scholarly literature that delves into the impact of firm value and the disclosure of Environmental, Social, and Governance (ESG) factors in various research studies. The study reveals that there are diverse viewpoints on whether ESG disclosure influences firm value, and it highlights ongoing discrepancies in research findings in this regard. While some companies possess strong ESG disclosures leading to higher firm values, there are also instances where the opposite holds true. This divergence in outcomes can be attributed to several influencing factors, including limited understanding of ESG, variations in ESG disclosure quality among companies, industry-specific characteristics, resource constraints, differences in the weighting of ESG scores, and the substantial costs associated with ESG implementation. Future research is expected to expand its scope in order to provide a more precise understanding of the relationship between firm value and ESG disclosure.