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September 5, 2025Open Access

The Effect of Environmental Social Governance (ESG) Disclosure and Debt Policy on Firm Value Moderated by Firm Size

NFNur Indah Fatmala TPTri Kartika PertiwiUniversity of Pembangunan Nasional Veteran Jawa Timur

Key Points

Debt policy positively contributes to firm value, whereas ESG disclosure has no significant impact.
Firm size moderates the relationship between debt policy and firm value but not between ESG disclosure and firm value.
The study analyzed data from 17 issuers listed on the IDX ESG Leaders over a three-year period.
Using multiple regression analysis with SPSS revealed these critical insights into governance and financial strategies.

Abstract

The purpose of this study was to evaluate the impact of Environmental Social Governance (ESG) disclosure and debt policy on firm value, with firm size acting as a moderating variable in companies listed on the IDX ESG Leaders from 2020 to 2023. The selection of the sample was based on purposive sampling, resulting in 17 issuers with a total of 68 observation data during the study period. The data were analyzed through MRA with the assistance of SPSS. The results showed that ESG disclosure did not contribute to firm value, while debt policy did contribute to firm value. While firm size did not show a moderating effect on the relationship between ESG disclosure and firm value, it did moderate the impact of debt policy on firm value.

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