<![CDATA[Purpose: This study aims to examine the effect of financial reporting quality and investment effectivity on firm value, and to analyze how ESG disclosure moderates these relationships in manufacturing firms in Indonesia and Malaysia. The study further compares how differences in institutional maturity shape investor responses to transparency, accountability, and sustainability practices. Methodology/approach: This research uses secondary data obtained from annual reports and sustainability reports of manufacturing companies listed in Indonesia and Malaysia from 2020 to 2024. Panel data regression was conducted using EViews 12 to evaluate the direct and moderating effects and to compare patterns across the two emerging markets. Findings: The results reveal contrasting valuation mechanisms between Indonesia and Malaysia. In Indonesia, financial reporting quality does not influence firm value, but investment effectivity plays a significant positive role, reflecting investor sensitivity to firms’ capital allocation efficiency. However, ESG disclosure does not strengthen the impact of either financial reporting quality or investment decisions. In Malaysia, financial reporting quality significantly enhances firm value, while investment effectivity shows no direct effect. ESG disclosure negatively moderates the relationship between financial reporting quality and firm value and does not moderate the effect of investment effectivity, suggesting that standardized sustainability reporting may dilute rather than reinforce financial signals in a more mature governance environment. Practical implications: These findings suggest that firms in emerging markets can strengthen valuation not only through financial performance but also through sincere sustainability communication. Improved ESG disclosure can amplify the impact of investment decisions, especially in institutional environments where reporting standards are still evolving. Originality/value: This study provides comparative evidence from Indonesia and Malaysia on how ESG disclosure reshapes the relevance of financial reporting quality and investment effectivity in determining firm value. It contributes to the growing literature by showing that institutional maturity and authentic disclosure practices play a crucial role in defining the meaning of corporate value in Southeast Asia.]]>
