THE EFFECT OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) AND BUSINESS STRATEGY ON FIRM VALUE WITH STOCK RETURN AS MODERATOR
DOI:
https://doi.org/10.36563/8nscnr93Keywords:
Environmental Social Governance (ESG), Business Strategy, Firm Value, Stock Return, Manufacturing CompaniesAbstract
This study empirically examines the influence of Environmental, Social, and Governance (ESG) and business strategy on firm value with stock return as a moderating variable. The research population comprises manufacturing companies listed on the Indonesia Stock Exchange from 2020 to 2024, with a final sample of 6 companies selected through purposive sampling. ESG was measured using GRI 2021 disclosure proportions, business strategy via Premium Price Capability (PPC), firm value through Tobin's Q, and stock return via price changes. Data analysis employed multiple linear regression and Moderated Regression Analysis (MRA). Results indicate that ESG does not significantly affect firm value, while business strategy demonstrates a positive and significant impact. Stock return fails to moderate the relationship between ESG/business strategy and firm value. These findings suggest Indonesian investors prioritize fundamental business strategy implementation over sustainability factors (ESG) in firm valuation
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