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The Effect Of Sustainability Report Disclosure On Firm Value With Growth And Leverage As Control Variables

Author

Listed:
  • Dida Farida Latipatul Hamdah

    (Accounting Study Program, Faculty of Economics, Universitas Garut, Garut, Indonesia)

  • Amelia Setiawan

    (Doctoral Program in Economics, Parahyangan Catholic University, Bandung, Indonesia)

  • Erik Kartiko

    (Accounting Study Program, Faculty of Economics, Universitas Garut, Garut, Indonesia)

  • Nor Balkish Zakaria

    (Accounting Research Institute, Universiti Teknologi MARA, Malaysia)

  • Teddy Hikmat Fauzi

    (Faculty of Social Science and Politics, Pasundan University, Bandung, Indonesia)

Abstract

This study examines the effect of sustainability report disclosure on firm value in energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. The background of this research is based on the growing global awareness of the importance of sustainable business practices and the strategic role of the energy sector in the transition toward a low-carbon economy. The research adopts a quantitative approach with a purposive sampling method, resulting in 16 companies that consistently published both annual and sustainability reports. Sustainability disclosure is measured using the Global Reporting Initiative (GRI) 2021 standards, which cover economic, environmental, and social aspects. Firm value is measured using Tobin’s Q ratio as a market performance indicator. The analytical techniques employed include descriptive statistics, classical assumption tests, and simple linear regression using SPSS software. The results show that sustainability report disclosure has a positive and significant effect on firm value. These findings indicate that transparency in sustainability-related information can enhance market perception, build corporate reputation, and contribute to increased firm value—especially in the face of global sustainability demands and investor preferences toward ESG (Environmental, Social, and Governance) aspects.

Suggested Citation

  • Dida Farida Latipatul Hamdah & Amelia Setiawan & Erik Kartiko & Nor Balkish Zakaria & Teddy Hikmat Fauzi, 2025. "The Effect Of Sustainability Report Disclosure On Firm Value With Growth And Leverage As Control Variables," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(8), pages 5588-5599, August.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-8:p:5588-5599
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    References listed on IDEAS

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    3. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
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