The Impact of ESG Performance on Firm Value with Moderation of Corporate Sustainable Growth Rate (Study on JII Indexed Companies for the 2021-2023 Period)

Nimas Dewi Lestari, Nanik Wahyuni, Meldona Meldona

Abstract


The value of a company reflects investors’ perception of the effectiveness of management in utilizing the company's resources in the present and future. This study aims to investigate the impact of environmental, social, and governance (ESG) performance, as represented by ESG Risk Rating, on firm value, with the sustainable growth rate (SGR) acting as a moderating factor. The study adopts a quantitative approach, using the moderated regression analysis (MRA) method. The research focuses on companies listed on the Jakarta Islamic Index (JII) during the 2021-2023 period. The findings indicate that ESG performance significantly influences firm value, and the sustainable growth rate (SGR) can moderate the relationship between ESG performance and firm value for companies listed on the JII during the 2021-2023 period. This study concludes that the level of ESG performance of companies proxied by ESG Risk rating is one of the factors that must be considered in making investments. In addition, the company's sustainability growth rate is important when making investments in the long term. This research provides important implications for company management and investors in making strategic decisions related to ESG and sustainable growth so that they can achieve optimal long-term value.

Keywords


ESG Performance; ESG Risk Rating; Firm Value; Sustainable Growth Rate

Full Text:

PDF

References


Abisola, A., & Akinsulere, F. (2019). Investors perception and profitability of listed companies: Evidence from Nigeria. Journal of Accounting and Taxation, 11, 139–144. https://doi.org/10.5897/JAT2019.0355

Abrams, R., Han, S., & Hossain, M. (2021). Environmental performance, environmental management and company valuation. Journal of Global Responsibility, ahead-of-p. https://doi.org/10.1108/JGR-10-2020-0092

Ahadiya, A. L. (2021). Assesing the Financial Performance: in Perspective Environmental Performance, CSR, GCG, and Leverage. IPTEK Journal of Proceedings Series, 1, 266–272.

Ahmed, B. (2020). Understanding the impact of investor sentiment on the price formation process: A review of the conduct of American stock markets. The Journal of Economic Asymmetries, 22, e00172. https://doi.org/https://doi.org/10.1016/j.jeca.2020.e00172

Alsayegh, M. F., Abdul Rahman, R., & Homayoun, S. (2020). Corporate Economic, Environmental, and Social Sustainability Performance Transformation through ESG Disclosure. In Sustainability (Vol. 12, Issue 9). https://doi.org/10.3390/su12093910

Andreas, A., & Gumanti, T. A. (2022). Organizational culture and company values: a cross-sectional study on public companies in Indonesia. Jurnal Siasat Bisnis, 27(1), 76–85. https://doi.org/10.20885/jsb.vol27.iss1.art6

Ani, D. A. (2021). The Effect of Environmental Performance on The Value of The Company with Financial Performance as an Intervening Variable. Jibaku: Jurnal Ilmiah Bisnis, Manajemen Dan Akuntansi, 1(1), 16–29.

Anisa, Y. D., & Nikmah. (2023). The Role of External Assurance in Moderating the Effect of Sustainability Reporting Quality on Firm Value. Ilomata International Journal of Tax and Accounting, 5(1), 15–27. https://doi.org/10.52728/ijtc.v5i1.974

Ariesa, Y., Putra Hulu, W., Vilika, & Antonio, K. (2023). The Effect of Sustainable Growth Rate, Research and Development on Company Value Through Variable Moderating Profitability in Start Up Companies in The World Pengaruh Sustainable Growth Rate, Research and Development Terhadap Nilai Perusahaan Melalui Vari. Management Studies and Entrepreneurship Journal, 4(2), 1858–1870. http://journal.yrpipku.com/index.php/msej

Blajer-Gołębiewska, A. (2021). Individual corporate reputation and perception of collective corporate reputation regarding stock market investments. PloS One, 16(9), e0257323. https://doi.org/10.1371/journal.pone.0257323

Chang, Y. J., & Yoo, J. W. (2023). When CSR Matters: The Moderating Effect of Industrial Growth Rate on the Relationship between CSR and Firm Performance. In Sustainability (Vol. 15, Issue 18). https://doi.org/10.3390/su151813677

Cohen, G. (2023). The impact of ESG risks on corporate value. Review of Quantitative Finance and Accounting, 60(4), 1451–1468. https://doi.org/10.1007/s11156-023-01135-6

Dincă, M. S., Vezeteu, C. D., & Dincă, D. (2022). The relationship between ESG and firm value. Case study of the automotive industry. Frontiers in Environmental Science, 10(3389), 1–10. https://doi.org/10.3389/fenvs.2022.1059906

Fachrezi, M. F., Fauziah, S., Iqbal, M., & Firmansyah, A. (2024). ESG RISK Dan Nilai Perusahaan Di Indonesia. Akuntansiku, 3(2), 64–76. https://doi.org/10.54957/akuntansiku.v3i2.691

Febriani, N., Hayat, A., Sadikin, A., & Juwita, R. (2022). Sustainable Growth Rate Dalam Mempengaruhi Return Saham Dengan Covid-19 Dan Sustainability Report Sebagai Variabel Moderasi. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 6(3), 352–367. https://doi.org/10.31955/mea.v6i3.2371

Ferniawan, M. F., Kusumawati, A., & Afdal. (2024). The Influence of Earnings Per Share (EPS), Price Earnings Ratio (PER), Price to Book Value (PBV), And Debt Equity Ratio (DER) On The Stock Return. Akrual: Jurnal Bisnis Dan Akuntansi Kontemporer, January, 114–130. https://doi.org/10.26487/akrual.v17i01.32073

Giannetti, B. F., Scarpelin, J., Di Agustini, C. A., Paranhos, M. A. H. L., Lozano, P. A., Agostinho, F., & Almeida, C. M. V. B. (2022). Perceived value versus real value: Why can investors in sustainable companies fail in their mission? Cleaner Production Letters, 3, 100020. https://doi.org/https://doi.org/10.1016/j.clpl.2022.100020

Guo, K., Sun, Y., & Qian, X. (2017). Can investor sentiment be used to predict the stock price? Dynamic analysis based on China stock market. Physica A: Statistical Mechanics and Its Applications, 469, 390–396. https://doi.org/https://doi.org/10.1016/j.physa.2016.11.114

Handayati, P., Sumarsono, H., & Narmaditya, B. S. (2022). Corporate Social Responsibility Disclosure and Indonesian Firm Value: the Moderating Effect of Profitability and Firm’S Size. Journal of Eastern European and Central Asian Research, 9(4), 703–714. https://doi.org/10.15549/jeecar.v9i4.940

Handoyo, S., Ardiami, K., & Setya, P. (2021). Value of The Company and It’s Factors (Study in Indonesia’s Mining Company Sector). Jurnal RAK (Riset Akuntansi Keuangan), 6, 215–238. https://doi.org/10.31002/rak.v6i2.5716

Hardani. (2020). Metode Penelitian Kualitatif & Kuantitatif. CV. Pustaka Ilmu.

IDX (Indonesia Stock Exchange). (2021). Nilai ESG. Idx.Co.Id. https://www.idx.co.id/id/perusahaan-tercatat/nilai-esg

IDX (Indonesia Stock Exchange). (2023). Indeks. Idx.Co.Id. https://www.idx.co.id/id/produk/indeks

Indrarini, S. (2019). Nilai Perusahaan Melalui Kualitas Laba (Good Corporate & Kebijakan Perusahaan). Scopindo Media Pustaka.

Istikomah, Rahmawati, & Amperawati, E. D. (2023). The Impact of ESG Risk Scores on Firm Value: Foreign Ownership as A Moderating Role. AFRE Accounting and Financial Review, 6(1), 139–147. https://doi.org/https://doi.org/10.26905/afr.v6i1.

Khaireddine, H., Lacombe, I., & Jarboui, A. (2024). The trilogy in sustainability of environmental performance, assurance quality and firm value. Sustainability Accounting, Management and Policy Journal, 15(2), 482–519. https://doi.org/10.1108/SAMPJ-07-2022-0352

Koko Safitri. (2021). Good Corporate Governance and Corporate Social Responsibility in Moderating the Effect of Environmental Performance on Financial Performance. International Journal of Science, Technology & Management, 2(6), 2218–2229. https://doi.org/10.46729/ijstm.v2i6.399

Latifah, A. N. (2020). Pengaruh Rasio Keuangan Terhadap Return Saham Dengan Nilai Perusahaan Sebagai Variabel Intervening. Jurnal Pendidikan Dan Ekonomi, 9(1), 72–81.

Lee, M. T., & Suh, I. (2022). Understanding the effects of Environment, Social, and Governance conduct on financial performance: Arguments for a process and integrated modelling approach. Sustainable Technology and Entrepreneurship, 1(1), 100004. https://doi.org/https://doi.org/10.1016/j.stae.2022.100004

Lin, J., & Qamruzzaman, M. (2023). The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability? Frontiers in Environmental Science, 11. https://www.frontiersin.org/journals/environmental-science/articles/10.3389/fenvs.2023.1002357

Listiani, N., & Supramono, S. (2020). Sustainable growth rate: Between fixed asset growth and firm value. Management and Economics Review, 5(1), 147–159.

Loekito, V., & Setiawati, L. W. (2021). Analisis Pengaruh Corporate Social Responsibility (Csr) Terhadap Nilai Perusahaan Dengan Variabel Kontrol Likuiditas, Leverage, Ukuran Perusahaan, Dan Profitabilitas Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2017 – 2019. BALANCE: Jurnal Akuntansi, Auditing Dan Keuangan, 18(1), 1–26. https://doi.org/10.25170/balance.v18i1.2289

Mat Nor, F., Ramli, N. A., Marzuki, A., & Rahim, N. (2020). Corporate sustainable growth rate: The potential impact of COVID-19 on Malaysian companies . The Journal of Muamalat and Islamic Finance Research, 17(3 SE-), 25–38. https://doi.org/10.33102/jmifr.v17i3.281

Mukherjee, T., & Sen, S. S. (2019). Intellectual Capital and Corporate Sustainable Growth: The Indian Evidence. Journal of Business Economics and Environmental Studies, 9(2), 5–15. https://doi.org/10.13106/jbees.2019.vol9.no2.5

Neldi, M., Hady, H., & Elfiswandi, E. (2023). Nilai Perusahaan: Price to Earning Ratio (PER). CV. Gita Lentera. https://books.google.co.id/books?id=8lLeEAAAQBAJ

Ningwati, G., Septiyanti, R., & Desriani, N. (2022). Pengaruh Environment, Social and Governance Disclosure terhadap Kinerja Perusahaan. Goodwood Akuntansi Dan Auditing Reviu, 1(1), 67–78. https://doi.org/10.35912/gaar.v1i1.1500

Nur, T., & Panggabean, R. R. (2023). The Impact of Environmental Performance on Environmental Disclosure, moderated by Company Characteristics. E3S Web of Conferences, 426, 1092.

Nurhayati, I., Sudiyatno, B., Puspitasari, E., & Basiya, R. (2021). Moderating effect of firm performance on firm value: Evidence from Indonesia. Problems and Perspectives in Management, 19(3), 85–94. https://doi.org/10.21511/ppm.19(3).2021.08

Priandhana, F. (2022). Pengaruh Risiko Environment Social and Governance Terhadap Kinerja Keuangan Perusahaan (Studi Pada Perusahaan Didalam Indeks IDXESGL). Business Economic, Communication, and Social Sciences (BECOSS) Journal, 4(1), 59–63. https://doi.org/10.21512/becossjournal.v4i1.7797

Priyanto, A., & Robiyanto, R. (2020). Factors Affecting Sustainable Growth Rate on Manufacturing Companies in Indonesia Stock Exchange Periode 2015-2018. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 4(2 SE-Articles). https://doi.org/10.31955/mea.v4i2.287

Putri, S. S., Lestari, W., & Rahayu, R. (2023). Effect of Sales Growth, Capital Structure, and Company Size on Company Value: Empirical Study of Real Estate & Property Sector Companies Listed on the Indonesia Stock Exchange. Journal of Business Management and Economic Development, 1(03), 487–498. https://doi.org/10.59653/jbmed.v1i03.207

Ramadhan, M. Z. D., Putri, N. K., & Arofah, T. (2022). Impact Of Tangible Assets And Intangible Assets With Sustainable Growth As Moderating Variable On Value Of Firms Listed On Index Growth 30 Periods 2019-2020. Proceeding of International Conference Sustainable Competitive Advantage, 3.

Rashid, K., & Islam, S. M. N. (2008). Corporate Governance and Firm Value: Econometric Modellling and Analysis of Emerging and Developed Financial Markets. Emerald Group Publishing Limited. https://books.google.co.id/books?id=NZdxDwAAQBAJ

Ratnaningtyas, D., Chandrarin, G., & Subiyantoro, E. (2021). Effect of Performance Factors to Increase Company Value. International Journal of Advances in Scientific Research and Engineering, 07(09), 43–47. https://doi.org/10.31695/ijasre.2021.34060

Rohmah, F., & Shodiq, M. J. (2024). A Conceptual Paper of Risk Industry Moderation: Sustainable Growth, Intellectual Capital, and Firm Value Dynamics. Proceedings of Femfest International Conference on Economics, Management, and Business, 2(SE-Articles), 554–560. https://ejournal.unida.gontor.ac.id/index.php/FICCOMSS/article/view/11837

Sihaloho, J., & Rochyadi, A. P. (2021). the Influence of Price Earning Ratio (Per), Earning Per Share (Eps), Price To Book Value (Pbv) on Stock Prices and Firm Size As Mediators in Food and Beverage Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange 2015-2020. Business and Accounting Research (IJEBAR) Peer Reviewed-International Journal, 5(4), 432–446. https://jurnal.stie-aas.ac.id/index.php/IJEBAR

Sitorus, A. P., Siregar, S., & Nurlaila. (2023). Management of Environmental, Social and Governance (ESG) to Fulfill Stakeholder Expectations in Compliance with Existing Laws and Regulations. Russian Law Journal, XI(6), 662–666. https://www.russianlawjournal.org/index.php/journal/article/view/3459

Stowe, J. D. (2007). Equity Asset Valuation. Wiley. https://books.google.co.id/books?id=GGu1jTk9ewsC

Suganda, T. R. (2018). Teori dan Pembahasan Reaksi Pasar Modal Indonesia. Seribu Bintang.

Sustainanalytics. (2020). Company ESG Risk Rating. Morningstar. https://www.sustainalytics.com/esg-rating

Tao, H., Zhuang, S., Xue, R., Cao, W., Tian, J., & Shan, Y. (2022). Environmental Finance: An Interdisciplinary Review. Technological Forecasting and Social Change, 179, 121639. https://doi.org/https://doi.org/10.1016/j.techfore.2022.121639

Tarczyński, W., Tarczyńska-Łuniewska, M., & Majewski, S. (2020). The value of the company and its fundamental strength. Procedia Computer Science, 176, 2685–2694. https://doi.org/https://doi.org/10.1016/j.procs.2020.09.331

Vivianita, A., Indira Januarti, & Karlina Aprilia Kusumadewi, R. R. (2023). Pengaruh Pengungkapan Esg Terhadap Nilai Perusahaan Yang Dimoderasi Oleh Sustainable Growth Rate. Jurnal Proaksi, 10(4 SE-Articles), 698–710. https://doi.org/10.32534/jpk.v10i4.5052

Wibawa, D. S., & Khomsiyah, K. (2022). Pengaruh Lingkungan Yang Dimoderasi Oleh Ukuran Perusahaan Terhadap Nilai Perusahaan Pada Pandemi Covid-19. Owner, 6(4), 3501–3509. https://doi.org/10.33395/owner.v6i4.1189




DOI: http://dx.doi.org/10.29040/jiei.v10i3.15069

Refbacks

  • There are currently no refbacks.


Jurnal Ilmiah Ekonomi Islam, ISSN 2477-6157 l E-ISSN 2579-6534

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

web analytics

situs toto