SUSTAINABILITY DISCLOSURE AND INVESTOR PERSPECTIVE: COST OR BENEFIT? Vera Oktari- Wiwiek Dianawati- Noorlailie Soewarno- Alfa Rahmiati
Universitas Airlangga
Abstract
Purpose - This study investigates the influence of environmental, social, and governance (ESG) disclosure on company value from an investor perspective in the short and long term.
Design/methodology/approach - This research uses 78 companies listed from 2010 to 2020 on the IDX Compass 100 Index. The independent variables of this research consist of environmental, social and governance regressed on company value consisting of the market to book value (MBV) and Tobin^s Q as a proxy for robustness check using Generalized Method of Moment (GMM) and Fully Modified Ordinary Least Square (FMOLS).
Findings - This research finds that ESG affects companies negatively in the short term but positively influences them in the long term.
Research limitations/implications - This study captures the effects of ESG voluntary disclosure on companies in Indonesia. Then, it is essential to carry out further studies that look at ESG from the perspective of other stakeholders in more detail.
Originality/value - This study highlights investors^ perspectives in seeing the meaning of ESG in the short and long term. In addition, FMOLS may be a recommendation to test long-term effects.
