ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND CORPORATE VALUE: UNPACKING THE MODERATING EFFECT OF COMPANY SIZE
Introduction: This study endeavours to analyse the effect of environmental, social, and governance (ESG) performance on corporate value and determines whether company size can affect this outcome. Methods: This quantitative research was conducted across five Southeast Asian (ASEAN) countries over...
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Fakultas Ekonomi dan Bisnis, Universitas Airlangga
2025-05-01
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| Series: | Jurnal Ekonomi dan Bisnis Airlangga |
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| Online Access: | https://e-journal.unair.ac.id/JEBA/article/view/69843 |
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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 |
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Introduction: This study endeavours to analyse the effect of environmental, social, and governance (ESG) performance on corporate value and determines whether company size can affect this outcome.
Methods: This quantitative research was conducted across five Southeast Asian (ASEAN) countries over four periods, from 2020 to 2023. The sample comprises 361 companies, selected using a purposive sampling technique, resulting in a total of 1,444 observations. The study employs moderated regression analysis (MRA) of panel data.
Results: The findings reveal that ESG performance unfavourably affects corporate value. However, company size mitigates this unfavourable effect, as evidenced by its substantial favourable moderating role. Further analysis at the country level shows consistent results in Indonesia, Malaysia, and Thailand. In contrast, ESG performance does not substantially affect corporate value in Singapore and the Philippines, nor does company size have a notable moderating effect.
Conclusion and suggestion: This study underscores the significance of integrating ESG policies into corporate strategies, especially for larger corporations. Smaller firms may need to focus on cost-effective initiatives or seek support to scale their ESG efforts. For policymakers, the study underscores the necessity of enhancing support through transparency, fiscal incentives, and regulations to promote ESG awareness and implementation, particularly in countries where the effect of ESG is limited.
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| format | Article |
| id | doaj-art-cb12ade42f6e424a932f044707ed6b31 |
| institution | OA Journals |
| issn | 2338-2686 2597-4564 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Fakultas Ekonomi dan Bisnis, Universitas Airlangga |
| record_format | Article |
| series | Jurnal Ekonomi dan Bisnis Airlangga |
| spelling | doaj-art-cb12ade42f6e424a932f044707ed6b312025-08-20T02:34:31ZengFakultas Ekonomi dan Bisnis, Universitas AirlanggaJurnal Ekonomi dan Bisnis Airlangga2338-26862597-45642025-05-01351ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND CORPORATE VALUE: UNPACKING THE MODERATING EFFECT OF COMPANY SIZEDendi Mulyana0Aristanti Widyaningsih1Rozmita Dewi Yuniarti Rozali2Department of Accounting, Universitas Pendidikan Indonesia, Bandung, IndonesiaDepartment of Accounting, Universitas Pendidikan Indonesia, Bandung, IndonesiaDepartment of Accounting, Universitas Pendidikan Indonesia, Bandung, Indonesia Introduction: This study endeavours to analyse the effect of environmental, social, and governance (ESG) performance on corporate value and determines whether company size can affect this outcome. Methods: This quantitative research was conducted across five Southeast Asian (ASEAN) countries over four periods, from 2020 to 2023. The sample comprises 361 companies, selected using a purposive sampling technique, resulting in a total of 1,444 observations. The study employs moderated regression analysis (MRA) of panel data. Results: The findings reveal that ESG performance unfavourably affects corporate value. However, company size mitigates this unfavourable effect, as evidenced by its substantial favourable moderating role. Further analysis at the country level shows consistent results in Indonesia, Malaysia, and Thailand. In contrast, ESG performance does not substantially affect corporate value in Singapore and the Philippines, nor does company size have a notable moderating effect. Conclusion and suggestion: This study underscores the significance of integrating ESG policies into corporate strategies, especially for larger corporations. Smaller firms may need to focus on cost-effective initiatives or seek support to scale their ESG efforts. For policymakers, the study underscores the necessity of enhancing support through transparency, fiscal incentives, and regulations to promote ESG awareness and implementation, particularly in countries where the effect of ESG is limited. https://e-journal.unair.ac.id/JEBA/article/view/69843ESG PerformanceCompany SizeCorporate ValueMRASustainability |
| spellingShingle | Dendi Mulyana Aristanti Widyaningsih Rozmita Dewi Yuniarti Rozali ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND CORPORATE VALUE: UNPACKING THE MODERATING EFFECT OF COMPANY SIZE Jurnal Ekonomi dan Bisnis Airlangga ESG Performance Company Size Corporate Value MRA Sustainability |
| title | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND CORPORATE VALUE: UNPACKING THE MODERATING EFFECT OF COMPANY SIZE |
| title_full | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND CORPORATE VALUE: UNPACKING THE MODERATING EFFECT OF COMPANY SIZE |
| title_fullStr | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND CORPORATE VALUE: UNPACKING THE MODERATING EFFECT OF COMPANY SIZE |
| title_full_unstemmed | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND CORPORATE VALUE: UNPACKING THE MODERATING EFFECT OF COMPANY SIZE |
| title_short | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND CORPORATE VALUE: UNPACKING THE MODERATING EFFECT OF COMPANY SIZE |
| title_sort | environmental social and governance esg performance and corporate value unpacking the moderating effect of company size |
| topic | ESG Performance Company Size Corporate Value MRA Sustainability |
| url | https://e-journal.unair.ac.id/JEBA/article/view/69843 |
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