<![CDATA[Environmental Social Governance (ESG) has become one of the global discussion. Although global awareness of green investment has widely been accepted in developed countries, progresses are still expected in developing countries. In response to such lag in the latter group, this study was conducted to identify the effects of ESG disclosure as a non-financial measure and Return on Equity as a financial measure of firm value. Here, Legitimacy theory and Stakeholder theory were incorporated to understand the effects of the independent variables on the dependent variable. This quantitative study uses secondary data acquired from Bloomberg and the annual reports of 13 sample companies selected through purposive sampling. Multiple linear regression and classical assumption test were performed using SPSS 26. This study finds that ESG disclosure does not significantly influence firm value, which was proxied by Tobin’s Q. Further, the ROE-proxied profitability has positive and significant impacts on firm value, while ESG disclosure was not perceived by investors as a factor that can improve firm value. Additionally, profitability also reflects the companies’ satisfactory performance, attracting investors’ interest and boosting firm value.]]>
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