The Influence of Environment, Social and Government Score on Firm Value: Foreign Ownership As a Moderation Variable

Abstract

This study aims to provide empirical evidence of the influence of environmental, social, and governance (ESG) scores on firm value with foreign ownership as a moderating variable. The population in this study are all non-financial companies listed on the Indonesia Stock Exchange and have ESG disclosure scores, and the sample is The selected non-financial companies have ESG scores with complete data according to the variables studied. The observation period is 2021-2023. The test results prove that the ESG disclosure score has a negative effect on company value. The results of further research prove that foreign ownership moderates the environmental, social, and governance (ESG) influence on company value. This research contributes to stakeholder theory and legitimacy theory, where better ESG disclosure will result in better quality of financial reports and legitimize the company as a company that pays serious attention to environmental, social, and reporting. Governance (ESG) as well as foreign ownership increase expectations for better sustainability practices.