The Influence Of Environmental, Social, And Governance On Firm Value (Case Study on Companies Listed on the ESG Leader Index for the 2021-2023 Period)

Abstract

The golas of this research are: 1) Being aware of how environmental affect the firm value enterprises included in the 2021-2023 ESG Leader index, 2) Being aware of how social affect the firm value enterprises included in the 2021-2023 ESG Leader index, 3) Being aware of how governance affect the firm value enterprises included in the 2021-2023 ESG Leader index. Company value is one aspect that can be influenced by environmental, social, governance. Through a quantitative approach, using a purposive sampling technique, this study selected 18 company’s as a sample from the population of 44 company’s that were part of ESG Leader index 2021-2023. Acoording to the research social and governance factors significantly positive on firm value, whereas environmental factors significantly negative on firm value. In order to boost stakeholder’s trust, comapny’s that have the incorporated ESG elements can provide sustainability reports accurately and be verified for correctness.