The Influence of External Mechanisms of Good Corporate Governance (GCG) and Environmental, Social and Governance (ESG) Sustainability on Firm Values

Abstract

This study aims to analyze the influence of external mechanisms of good corporate governance (GCG) and environmental, social and governance (ESG) sustainability on firm value in LQ-45 companies. The research method used in this study is a quantitative method using a purposive sampling technique in LQ-45 companies from 2021 to 2023. The results of the study show that the external GCG mechanism does not have a significant effect on firm value and ESG has a negative effect on firm value. This indicates that even though the company has implemented good GCG principles, this may not be enough to improve market perception of the company.