Firm Size as Moderator of ESG, Dividend Policy, And Efficiency Impact on Firm Value: Evidence from Indonesia's Energy Sector

This study aims to examine the role of firm size in moderating the effects of Environmental, Social, and Governance (ESG) disclosure, dividend policy (DPR), and efficiency (TATO) on firm value in Indonesia’s energy sector. A quantitative approach was employed, utilizing panel data from nine energy companies listed on the Indonesia Stock Exchange (IDX) over the 2021–2024 period. Empirical findings reveal that ESG disclosure has a significantly negative effect on firm value. However, firm size reverses this effect, turning the negative impact of ESG into a positive one. TATO exhibits a positive and significant influence on firm value, yet this effect becomes negative when moderated by firm size. DPR demonstrates a significantly positive impact on firm value but is not moderated by firm size. These results indicate that ESG disclosure imposes a financial burden and is perceived negatively by the market, except for large firms with strong financial stability, where ESG can instead enhance firm value. High DPR receives a positive market response and reflects confidence in the company’s future cash flows, with consistent effects for both large and small firms. High TATO reflects operational efficiency that attracts investors; however, in large firms with complex assets and operations, this indicator becomes less relevant to firm value. Keywords: Dividend Payout Ratio, ESG Disclosure, Firm Size, Firm Value, Total Asset Turnover