What type of study is this?

This is a Quantitative Research study (also classified as: Multiple Regression).

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September 5, 2025Open Access

Integration of ESG, Profitability, and Good Corporate Governance: Strategy for Increasing Firm Value

Key Points

ESG disclosure and governance positively impact firm value, highlighting the importance of corporate governance and sustainability.
The study used multiple regression analysis on data from 67 non-financial companies listed on the IDX from 2019 to 2023.
Profitability alone does not significantly influence firm value, suggesting that factors like institutional ownership and governance are crucial.
This research is framed using legitimacy theory and agency theory to explore corporate governance dynamics.

Abstract

This study aims to determine the effect of ESG disclosure, profitability, and governance (GCG) on firm value proxied by Tobins’Q. This study falls into the category of quantitative research. A total of 67 non-financial companies listed on the IDX were included in the sample for 2019 to 2023. The sampling method used was purposive sampling. Data analysis was carried out using multiple regression methods. The results showed that ESG, institutional ownership, independent board of commissioners and audit committee have an effect on firm value. While financial performance has no effect on firm value. These findings are deepened by including profitability and governance (GCG) variables, with a concentration on non-financial companies listed on the IDX. The theoretical framework applied includes legitimacy theory and agency theory.

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