The Effect of Sustainability Disclosure on Firm Value Moderated by Good Corporate Governance

Chelsy Velinda Laksmana; Wendra Hartono

doi:10.56741/jmsd.v4i03.1264

Authors

Chelsy Velinda Laksmana Universitas Ciputra Surabaya
Wendra Hartono
wendra.hartono@ciputra.ac.id
Universitas Ciputra Surabaya https://orcid.org/0000-0002-9267-9414

DOI:

https://doi.org/10.56741/jmsd.v4i03.1264

Keywords:

Environment Disclosure, Firm Value, Good Corporate Governance, Social Disclosure, Sustainability Disclosure

Abstract

The importance of sustainability disclosures has gained increasing attention in recent years, particularly among stakeholders aiming to maximize wealth by increasing firm value. This research aims to examine the moderating role of good corporate governance on the effect of economic, environmental, and social disclosure on firm value. This study adopted a quantitative approach with an associative design, using content analysis with the GRI 2021 Standards. The research focused on companies listed on the SRI KEHATI index from 2019 to 2023. The results indicate that only economic disclosure has a significant effect on firm value. Board size is not relatively effective in moderating the effect of economic, environmental and social disclosure on firm value. Audit committee meetings only can moderate the effect of economic disclosure on firm value. The presence of independent commissioners can effectively moderate the effect of economic, environmental, and social disclosures on firm value. Firms may leverage the findings of this research to evaluate the implementation of sustainability reporting. At the same time, investors are encouraged to focus on both financial and sustainability disclosures when making investment decisions.

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Author Biographies

Chelsy Velinda Laksmana, Universitas Ciputra Surabaya

is affiliated with International Business Management-International Class, Universitas Ciputra Surabaya, Indonesia. Currently, she holds position in the finance and accounting department at two companies in Indonesia. She is also a certified business development analyst by BNSP and has distinguished herself as a winner of over ten business and accounting competitions. (email: cvelinda@student.ciputra.ac.id).

Wendra Hartono, Universitas Ciputra Surabaya

was born in Surabaya on December 30, 1985. He is an assistant professor and senior lecturer at Universitas Ciputra Surabaya, Indonesia, specializing in investment, accounting, and entrepreneurship. He earned a bachelor’s in chemical engineering from Universitas Surabaya, a Master of Professional Accounting from La Trobe University, Australia, and a doctoral degree from Universiti Sains Malaysia. He holds multiple international certifications, including Certified Marketing Practitioner and Certified Financial Planner, and teaches in the management international class and postgraduate classes. He leads the Study Program of Magister Management International Class, Stock and Shares Gallery, and Financial Club. He has received the best teaching awards and actively contributes to research and community development programs. (email: wendra.hartono@ciputra.ac.id).

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