The Effect of Environmental Social Governance, Research and Development, Intellectual Capital and Leverage on Firm Value Farah Nur Fauziah(a*), Grahita Chandrarin(b), Diyah Sukati Cahyaningsih(c), Parawiyati(d)
(a) Graduate Student of Accounting, University of Merdeka Malang, Indonesia
*farahnurfauziah[at]stiedarulfalahmojokerto.ac.id
(b) Graduate School, Economic Science, University of Merdeka Malang, Indonesia
(c) Faculty of Economic and Business, University of Merdeka Malang, Indonesia
(d) Graduate School, Economic Science, University of Merdeka Malang, Indonesia
Abstract
Abstract
The Covid-19 pandemic has had an extraordinary impact on the global economy. Various policies were issued for business continuity after the Covid-19 pandemic. Recampaign for fulfilling the commitments and efforts of several countries to achieve the SDGs targets that are drivers of sustainable development is a very relevant matter to fight for. Several factors driving sustainable development that are relevant to increasing corporate value include environmental social governance, research and development, intellectual capital, and leverage.
Purpose - This research analyzes the effect of environmental social governance, research and development, intellectual capital, and leverage on firm value. For the suitability of the research model, 3 control variables are included: size, age, and type of company.
Methodology/ Population - The data used in this research is secondary data in the form of ESG risk scores and annual reports of 22 companies listed on IDX ESG leaders for the 2018-2022 period with a total of 110 observations. The data analysis used is multiple linear regression.
Findings - The results of the study show that research and development affect firm value, meaning that the level of R&D can affect the value and sustainability of the company. Intellectual capital affects the value of the company, showing that increased productivity due to creativity, and expertise that comes from knowledge and is supported by good systems and relationships can improve the company. Meanwhile, environmental social governance does not affect company value because markets in developing countries are at the stage of economic development and development that pays more attention to the scale and speed of economic growth as well as financial indicators rather than environmental, social, and governance responsibilities. Leverage does no effect on firm value because changes in leverage tend not to affect stock prices in the market.
Keywords: Firm Value- Environmental Social Governance- Research and Development- Intellectual Capital- Leverage
Topic: Sustainability of Green Economics for Anticipating Global Recession
