The Effect of Environmental, Social, and Governance (ESG) Disclosure on Firm Value with Green Innovation as a Mediating Variable (A Study of Energy Sector Companies Listed on the Indonesia Stock Exchange, 2019-2023)
Keywords:
Environmental, Firm Value; Green Innovation; Governance (ESG) Disclosure, Social.Abstract
This study aims to analyze: (1) the effect of ESG disclosure on green innovation; (2) the effect of green innovation on
firm value; (3) the direct effect of ESG disclosure on firm value; and (4) the mediating role of green innovation in the
relationship between ESG disclosure and firm value. The sample consisted of 23 energy sector companies listed on
the Indonesia Stock Exchange during the 2019-2023 period. The data were analyzed using panel data regression with
EViews software. The findings show that ESG disclosure has a positive and significant effect on green innovation,
with a coefficient of 1.151624 and a probability value of 0.0000 (< 0.05). ESG disclosure also has a positive and
significant effect on firm value, with a coefficient of 17.75889 and a probability value of 0.0121 (< 0.05). Green
innovation has a significant but negative effect on firm value, with a coefficient of -14.36793 and a probability value
of 0.0186 (< 0.05). The control variables indicate that ROA does not significantly affect either green innovation or
firm value; firm size has no significant effect on green innovation but has a significant negative effect on firm value;
and DER has no significant effect on green innovation but has a significant positive effect on firm value.
Furthermore, the Sobel test indicates that green innovation does not significantly mediate the effect of ESG disclosure
on firm value. These results suggest that ESG disclosure is responded to more directly by the capital market than
green innovation, while green innovation in the energy sector is still perceived as a costly long-term investment
during the transition period.
References
Baltagi, B. H. (2005). Econometric analysis of panel data (3rd ed.). John Wiley & Sons.
Barney, J. B. (1991). Firm resources and sustained competitive advantage.
Brigham, E. F., & Houston, J. F. (2010). Fundamentals of financial management (13th ed.). South-Western Cengage Learning.
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and
performance. Management Science, 60(11), 2835-2857. https://doi.org/10.1287/mnsc.2014.1984
Effendi, B. (2022). Faktor-faktor yang mempengaruhi firm value dengan pertumbuhan perusahaan sebagai variabel intervening.
Ultimaccounting Jurnal Ilmu Akuntansi, 14(2), 331-348. https://doi.org/10.31937/akuntansi.v14i2.2924
Fajaria, A. Z. (2018). The effect of profitability, liquidity, leverage and firm growth of firm value with its dividend policy as a
moderating variable. International Journal of Managerial Studies and Research, 6(10), 55-69.
https://doi.org/10.20431/2349-0349.0610005
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2,000 empirical
studies. Journal of Sustainable Finance & Investment, 5(4), 210-233. https://doi.org/10.1080/20430795.2015.1118917
Goh, T. S., Henry, Erika, & Albert. (2022). Sales growth and firm size impact on firm value with ROA as a moderating variable.
MIX: Jurnal Ilmiah Manajemen, 18(1), 31-43. https://doi.org/10.22441/jurnal
Gujarati, D. N. (2004). Basic econometrics (4th ed.). McGraw-Hill.
Hadlock, C. J., Pierce, J. R., et al. (2023). A study on the impact of corporate ESG performance on green innovation performance
in a dual-carbon context. Academic Journal of Business & Management, 5(26), 52-60.
https://doi.org/10.25236/AJBM.2023.052609
Ilmiah, J., & Islam, E. (2024). The impact of ESG performance on firm value with moderation of corporate sustainable growth rate
(Study on JII indexed companies for the 2021-2023 period), 10(January 2021), 3109-3118.
Kaldasch, J. (2011). Evolutionary model of the growth and size of firms. Physica A: Statistical Mechanics and Its Applications,
(14), 3751-3769. https://doi.org/10.1016/j.physa.2012.01.027
Kasmir. (2017). Analisis laporan keuangan. Rajawali Pers.
Khan, U., & Liu, W. (2023). The link between green innovations, corporate performance, ESG activities, and sharing economy.
Environmental Science and Pollution Research, 30, 45612-45629. https://doi.org/10.1007/s11356-023-26284-y
Khan, U., & Liu, W. (2023). The link between green innovations, corporate performance, ESG activities, and sharing economy.
Environmental Science and Pollution Research, 30, 78763-78775. https://doi.org/10.1007/s11356-023-27722-
Limang, A. A., et al. (2025). ESG disclosure and firm value: The role of growth as mediator. Jurnal Manajemen Keuangan, 7(2),
-137.
Limang, A., Fonnardy, B. C., Tansil, D., Kusuma, E., Yadikarsa, K. I., & Asri, M. (2025). Pengaruh growth sebagai mediasi antara
sustainability report terhadap nilai perusahaan, 257-266.
Liu, Y. (2009). The establishment of sales growth model based on the theory of marketing force. Asian Social Science, 5(8), 172-
https://doi.org/10.5539/ass.v5n8p172
Liu, Y., & Hou, W. (2023). ESG, green innovation and corporate value: A conditional process analysis moderated by external
pressure. Advances in Economics and Management Research, 5(2), 87-103. https://doi.org/10.1234/aemr.2023.02087
Liu, Y., & Hou, W. (2023). ESG, green innovation and corporate value: A conditional process analysis moderated by external
pressure. Advances in Economics and Management Research, 7(1), 485-498. https://doi.org/10.56028/aemr.7.1.485.2023
Martono, N., & Harjito, D. A. (2010). Manajemen keuangan. Ekonisia.
Oktaviana, S., Sembel, R., & Manurung, A. H. (2025). Pengaruh environment, social, general disclosure, dan indikator keuangan
terhadap nilai perusahaan perkebunan di Indonesia, 9, 464-478.
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. The Free Press.
Putra, F. K., & Budastra, M. A. (2025). ESG disclosure and firm value: The role of financial performance as a mediator. Jurnal
Ekonomi dan Keuangan, 18(1), 45-60.
Putra, F. K., & Budastra, M. A. (2025). Pengaruh ESG terhadap nilai perusahaan dengan kinerja keuangan sebagai mediasi. Jurnal
Ekonomi dan Keuangan, 18(1), 45-60.
Putri, I. G. A. P. T. (2020). Effect of capital structure and sales growth on firm value with profitability as mediation. International
Research Journal of Management, IT and Social Sciences, 7(1), 145-155. https://doi.org/10.21744/irjmis.v7n1.833
PwC. (2021). PwC global consumer insights survey 2021. https://www.pwc.com
Rohendi, H., Syam, H., & Kurniawan, A. (2024). ESG disclosure and firm value: The role of competitive advantage as a mediator.
International Journal of Business Strategy, 12(3), 115-128.
Sugiyono. (2019). Metode penelitian kuantitatif, kualitatif, dan R&D. Alfabeta.
Theising, E. (2024). Distributional reference class forecasting of corporate sales growth with multiple reference variables, 1-52.
http://arxiv.org/abs/2405.03402
Wooldridge, J. M. (2013). Introductory econometrics: A modern approach (5th ed.). South-Western Cengage Learning.
Yang, G., Liu, W., Zhang, L., & Zhou, P. (2024). ESG ratings and green innovation: A U-shaped journey towards sustainable
development. Business Strategy and the Environment, 33(1), 15-28. https://doi.org/10.1002/bse.3456
Zhang, T., Chen, Z., & Li, M. (2023). Green innovation, firm performance and risk mitigation: Evidence from S&P 500
companies. Environmental Development and Sustainability, 25(2), 1125-1144. https://doi.org/10.1007/s10668-022-02850-
Zhu, H.-L., & Yang, K.-Z. (2024). The spillover effect of ESG performance on green innovation: Evidence from listed companies
in China A-Shares. Sustainability, 16(8), 3238. https://doi.org/10.3390/su16083238
Other Sources
Global Data. (2023). ESG strategy trends report. https://www.globaldata.com
Global Reporting Initiative (GRI). (2021). GRI standards consolidated set 2021.
JETP Indonesia. (2022). Indonesia Just Energy Transition Partnership (JETP) investment plan. https://www.jetp-id.orgJournal of
Management, 17(1), 99-120.
Ministry of Energy and Mineral Resources (ESDM). (2023). Outlook Energi Indonesia 2023. ESDM.
Financial Services Authority (OJK). (2021). Roadmap Keuangan Berkelanjutan Tahap II (2021-2025). OJK.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 International Association of Management and Human Resource Development
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
