Advancing Sustainability Through Artificial Intelligence: Implications for Firm Value in Indonesia
This research seeks to explore the influence of AI adoption on ESG performance and further assess the mediation effect of ESG performance in the relation between AI adoption and firm value. The research was carried out from 2020 to 2023 on companies in Indonesia, yielding 288 observational data poin...
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Tarumanagara
2025-01-01
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| Series: | Jurnal Akuntansi |
| Subjects: | |
| Online Access: | http://ecojoin.org/index.php/EJA/article/view/2774 |
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| author | Dendi Mulyana Aristanti Widyaningsih Rozmita Dewi Yuniarti Rozali |
| author_facet | Dendi Mulyana Aristanti Widyaningsih Rozmita Dewi Yuniarti Rozali |
| author_sort | Dendi Mulyana |
| collection | DOAJ |
| description | This research seeks to explore the influence of AI adoption on ESG performance and further assess the mediation effect of ESG performance in the relation between AI adoption and firm value. The research was carried out from 2020 to 2023 on companies in Indonesia, yielding 288 observational data points. A multivariate analysis was performed utilising partial least squares structural equation modelling (PLS-SEM) to assess the hypothesis. The findings from hypothesis testing demonstrate that AI adoption has a significant favourable impact on ESG performance. Similarly, ESG performance significantly enhances firm value. Additionally, the indirect effects analysis reveals that ESG performance effectively mediates the positive relationship between AI adoption and firm value. AI enhances ESG performance by serving as a strategic resource, improving efficiency, and advancing sustainability to meet stakeholder expectations, further enhancing corporate value. This research encourages government support, managerial integration, and standardised policies for AI-driven business sustainability. |
| format | Article |
| id | doaj-art-11fa270714d74a1f96833757237e6828 |
| institution | Kabale University |
| issn | 1410-3591 2549-8800 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Universitas Tarumanagara |
| record_format | Article |
| series | Jurnal Akuntansi |
| spelling | doaj-art-11fa270714d74a1f96833757237e68282025-01-31T07:22:49ZengUniversitas TarumanagaraJurnal Akuntansi1410-35912549-88002025-01-0129114817010.24912/ja.v29i1.27742758Advancing Sustainability Through Artificial Intelligence: Implications for Firm Value in IndonesiaDendi Mulyana0Aristanti Widyaningsih1Rozmita Dewi Yuniarti Rozali2Universitas Pendidikan IndonesiaUniversitas Pendidikan IndonesiaUniversitas Pendidikan IndonesiaThis research seeks to explore the influence of AI adoption on ESG performance and further assess the mediation effect of ESG performance in the relation between AI adoption and firm value. The research was carried out from 2020 to 2023 on companies in Indonesia, yielding 288 observational data points. A multivariate analysis was performed utilising partial least squares structural equation modelling (PLS-SEM) to assess the hypothesis. The findings from hypothesis testing demonstrate that AI adoption has a significant favourable impact on ESG performance. Similarly, ESG performance significantly enhances firm value. Additionally, the indirect effects analysis reveals that ESG performance effectively mediates the positive relationship between AI adoption and firm value. AI enhances ESG performance by serving as a strategic resource, improving efficiency, and advancing sustainability to meet stakeholder expectations, further enhancing corporate value. This research encourages government support, managerial integration, and standardised policies for AI-driven business sustainability.http://ecojoin.org/index.php/EJA/article/view/2774artificial intelligence adoption; esg performance; firm value. |
| spellingShingle | Dendi Mulyana Aristanti Widyaningsih Rozmita Dewi Yuniarti Rozali Advancing Sustainability Through Artificial Intelligence: Implications for Firm Value in Indonesia Jurnal Akuntansi artificial intelligence adoption; esg performance; firm value. |
| title | Advancing Sustainability Through Artificial Intelligence: Implications for Firm Value in Indonesia |
| title_full | Advancing Sustainability Through Artificial Intelligence: Implications for Firm Value in Indonesia |
| title_fullStr | Advancing Sustainability Through Artificial Intelligence: Implications for Firm Value in Indonesia |
| title_full_unstemmed | Advancing Sustainability Through Artificial Intelligence: Implications for Firm Value in Indonesia |
| title_short | Advancing Sustainability Through Artificial Intelligence: Implications for Firm Value in Indonesia |
| title_sort | advancing sustainability through artificial intelligence implications for firm value in indonesia |
| topic | artificial intelligence adoption; esg performance; firm value. |
| url | http://ecojoin.org/index.php/EJA/article/view/2774 |
| work_keys_str_mv | AT dendimulyana advancingsustainabilitythroughartificialintelligenceimplicationsforfirmvalueinindonesia AT aristantiwidyaningsih advancingsustainabilitythroughartificialintelligenceimplicationsforfirmvalueinindonesia AT rozmitadewiyuniartirozali advancingsustainabilitythroughartificialintelligenceimplicationsforfirmvalueinindonesia |