ESG Disclosure and Firm Value in Sharia Capital Markets: Evidence from Food and Beverage Firms in Indonesia

Abstract

This study aims to analyze the influence of Environmental, Social, and Governance (ESG) on firm value in food and beverage sub-sector companies listed in the Indonesian Sharia Stock Index (ISSI) for the 2021–2024 period. Firm value is proxied using Price to Book Value (PBV), while ESG is measured based on the disclosure of the company's environmental, social, and governance performance in annual reports and sustainability reports. This study uses a quantitative method with purposive sampling techniques so that 13 samples of companies that meet the research criteria are obtained. Data analysis was carried out using E-Views software version 13 with panel data regression to determine the relationship between ESG variables and firm value. The results of the study show that simultaneous ESG disclosure has a significant effect on firm value. Partially, the environmental aspect has a significant positive influence, the negative social aspect has no effect, while the governance aspect has a significant negative influence on the firm value. These findings suggest that the implementation of ESG can increase investor confidence and have an impact on increasing the firm value.