The Effect of Environmental, Social, And Governance Disclosure on Company Value in Property and Real Estate Sector Companies Listed on The Indonesia Stock Exchange for The Period 2020-2023

Rani Ramayana Manurung; Dompak Pasaribu; Arison Nainggolan

doi:10.55927/ijbae.v4i3.153

Authors

Rani Ramayana Manurung Universitas Methodist Indonesia
Dompak Pasaribu Universitas Methodist Indonesia
Arison Nainggolan Universitas Methodist Indonesia

DOI:

https://doi.org/10.55927/ijbae.v4i3.153

Keywords:

Environmental, Social, Governance, Corporate Value, Property And Real Estate Sector Disclosure

Abstract

The aim of this study is to assess the impact of Environmental, Social, and Governance (ESG) disclosure on the value of companies in the Property and Real Estate sector that are listed on the Indonesia Stock Exchange for the period from 2020 to 2023. This research utilizes secondary data and employs purposive sampling along with a quantitative approach. The findings reveal that environmental disclosure positively and significantly influences company value, while social disclosure negatively and significantly affects it. Governance disclosure, on the other hand, has a positive but statistically insignificant effect on company value. Furthermore, the analysis of the third hypothesis indicates that when considered together, the variables of environmental, social, and governance disclosure have a positive and significant impact on company value. This suggests that the combined effect of these ESG factors is beneficial for company value. The study concludes that the influence of environmental, social, and governance disclosures accounts for 37.2% of the variation in company value, leaving 62.8% attributable to other factors not explored in this research.

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