ESG Disclosure, Intellectual Capital, Firm Value: Moderating Role of Earnings Management

Purpose: This study seeks to examine the influence of Environmental, Social and Governance (ESG) Disclosure and intellectual capital on firm value moderated by earnings management. Methodology/approach: This study uses quantitative method by taking a research sample consisting of 38 companies that have consistently implemented ESG from 2019 to 2023 and are not bank financial institutions. The data analysis technique uses data panel regression. Findings: ESG disclosure has a negative effect on firm value while intellectual capital has no effect on firm value. In addition, earnings management is also able to moderate ESG disclosure to firm value but is not able to moderate intellectual capital to firm value. Practical implications: Companies need to evaluate how ESG information is delivered in a relevant, accurate and transparent manner so that the disclosure truly reflects sustainable practices and is able to add value and trust from investors. Companies also need to create strategies that are able to increase intellectual capital so that they can be appreciated by stakeholders such as innovating products or providing superior services. Originality/value: This study is a development of the previous study by adding earnings management as a moderation variable that was not found in the previous study.