The Effect of Environmental Disclosure, Social Disclosure, Governance Disclosure, and Cash Holdings on Company Value: An Empirical Study of Banking Companies on the Indonesian Stock Exchange for the Period 2022–2025

Abstract

The banking sector plays a strategic role in economic stability and increasingly faces demands for transparent sustainability practices and effective financial management. This study aims to examine the effects of environmental disclosure, social disclosure, governance disclosure, and cash holdings on company value in banking companies listed on the Indonesia Stock Exchange during 2022–2025. This study employed a quantitative explanatory approach using secondary data obtained from annual reports, sustainability reports, financial statements, the Indonesia Stock Exchange, and company websites. The population comprised 48 banking companies, with samples selected through purposive sampling. Data were analyzed using multiple linear regression and hypothesis testing at a 5% significance level. The results show that environmental disclosure has a negative but insignificant effect on company value, while social disclosure has a positive and significant effect. Governance disclosure has a negative and significant effect, whereas cash holdings have a negative but insignificant effect on company value. These findings indicate that social disclosure is the most responsive sustainability dimension in strengthening investor confidence and market valuation. In conclusion, company value in the banking sector is influenced differently by ESG disclosure dimensions, while cash holdings alone do not significantly determine market value across Indonesia's banking industry as a whole.