The Effect of ESG on Firm Value and Implications for Sustainability

Risal Rinofah (), Pristin Prima Sari, Yhoga Heru Pratama, Irwan Trinugroho and Shapan Chandra Majumder
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Risal Rinofah: Universitas Sarjanawiyata Tamansiswa
Pristin Prima Sari: Universitas Sarjanawiyata Tamansiswa
Yhoga Heru Pratama: Universitas Sarjanawiyata Tamansiswa
Irwan Trinugroho: Universitas Sebelas Maret
Shapan Chandra Majumder: Comilla University

A chapter in Proceedings of the 4th International Conference on Management and Business (ICoMB 2025), 2026, pp 134-145 from Springer

Abstract: Abstract Environment, Social, and Governance (ESG) is a new theory in the business world and is now being developed in academic research. The purpose of this research is to empirically test the influence of Environment, Social, and Governance (ESG) on Firm Value and its impact on sustainability. The urgency of this research is that companies are encouraged to pay attention to the implementation of ESG in business operations. ESG pays attention to environmental issues that are correlated with social and governance, so it is important to gain stakeholder trust where companies not only pursue profits but also pay attention to environmental, social, and governance impacts. The research stages are first, Literature Study, Second, Data Sources, Third, Data Tabulation and Data Processing, and finally, analysis of results and publication. The method uses quantitative methods for the capital market on the Indonesia Stock Exchange using SPSS 25 and using financial reports for 2024–2025. The research sample is companies listed on the Indonesia Stock Exchange in 2024–2025. The results show that ESG has a significant effect on Firm Value, but ESG has no impact on sustainability, while Firm Value has a significant influence on sustainability. The benefits of this research are for the development of research on ESG management science, Firm Value, and Sustainability. The contribution of research to Firm management is to consider the investment manager for sustainable policy and firm value.

Keywords: ESG; Firm Value; IDX; Sustainable (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-656-2_11

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