Wahyuningsih
Universitas Muhammadiyah Palembang, Palembang, Indonesia

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The Impact of ESG (Environmental, Social, and Governance) on Corporate Value Wahyuningsih; Avrianto
Economy, Business, Finance, Accounting & Management Journal Vol. 2 No. 2 (2026): April: Economy, Business, Finance, Accounting & Management
Publisher : Yayasan Cinta Negara Indonesia

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Abstract

The increasing emphasis on sustainable business practices has positioned Environmental, Social, and Governance (ESG) performance as a critical factor influencing corporate value. However, empirical findings on the relationship between ESG and firm value remain inconsistent across industries and regions. This study aims to examine the impact of ESG performance on corporate value. A quantitative research approach was employed using secondary data collected from publicly listed companies. The data were analyzed using multiple regression analysis to evaluate the relationship between ESG indicators and corporate value, measured through market-based financial indicators. The findings reveal that ESG performance has a positive and significant effect on corporate value, indicating that firms with stronger ESG practices tend to achieve higher market valuation and investor confidence. The study concludes that effective ESG implementation enhances long-term corporate value by strengthening corporate reputation, stakeholder trust, and sustainable business performance