The Effect of Sustainability Report Disclosure on Firm Value With Growth and Leverage as Control Variables

This study examines the effect of sustainability report disclosure on firm value in energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. The background of this research is based on the growing global awareness of the importance of sustainable business practices and the strategic role of the energy sector in the transition toward a low-carbon economy. The research adopts a quantitative approach with a purposive sampling method, resulting in 16 companies that consistently published both annual and sustainability reports. Sustainability disclosure is measured using the Global Reporting Initiative (GRI) 2021 standards, which cover economic, environmental, and social aspects. Firm value is measured using Tobin’s Q ratio as a market performance indicator. The analytical techniques employed include descriptive statistics, classical assumption tests, and simple linear regression using SPSS software. The results show that sustainability report disclosure has a positive and significant effect on firm value. These findings indicate that transparency in sustainability-related information can enhance market perception, build corporate reputation, and contribute to increased firm value—especially in the face of global sustainability demands and investor preferences toward ESG (Environmental, Social, and Governance) aspects.

Authors

Publication Details

Journal
International Journal of Research and Innovation in Social Science
Published
2025-01-01
DOI
https://doi.org/10.47772/ijriss.2025.908000452
Primary Topic
Corporate Governance and Financial Management
Type
article
Field-Weighted Citation Impact
0.00
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article

The Effect of Sustainability Report Disclosure on Firm Value With Growth and Leverage as Control Variables

Erik Kartiko, Amelia Setiawan, Teddy Hikmat Fauzi, Dida Farida Latipatul Hamdah et al.
International Journal of Research and Innovation in Social Science
Corporate Governance and Financial Management
article

The Effect of Sustainability Report Disclosure on Firm Value With Growth and Leverage as Control Variables

Erik Kartiko, Amelia Setiawan, Teddy Hikmat Fauzi, Dida Farida Latipatul Hamdah, Nor Balkish Zakaria
article en

Abstract

This study examines the effect of sustainability report disclosure on firm value in energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. The background of this research is based on the growing global awareness of the importance of sustainable business practices and the strategic role of the energy sector in the transition toward a low-carbon economy. The research adopts a quantitative approach with a purposive sampling method, resulting in 16 companies that consistently published both annual and sustainability reports. Sustainability disclosure is measured using the Global Reporting Initiative (GRI) 2021 standards, which cover economic, environmental, and social aspects. Firm value is measured using Tobin’s Q ratio as a market performance indicator. The analytical techniques employed include descriptive statistics, classical assumption tests, and simple linear regression using SPSS software. The results show that sustainability report disclosure has a positive and significant effect on firm value. These findings indicate that transparency in sustainability-related information can enhance market perception, build corporate reputation, and contribute to increased firm value—especially in the face of global sustainability demands and investor preferences toward ESG (Environmental, Social, and Governance) aspects.

International Journal of Research and Innovation in Social ScienceVol. IX(VIII)
Openalex Percentile: Top 63%
Corporate Governance and Financial Management
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The Effect of Sustainability Report Disclosure on Firm Value With Growth and Leverage as Control Variables — Erik Kartiko, Amelia Setiawan, et al. · International Journal of Research and Innovation in Social Science (2025) | TGRS Research Map | TGRS