<![CDATA[Purpose – This study aims to examine the effect of Environmental Social Governance (ESG) disclosure as a non-financial measure and Return on Equity (ROE) as a financial measure on firm value. Design/methodology/approach – This quantitative study uses secondary data obtained from Bloomberg and company annual reports. The population consists of companies listed in the IDX ESG Leader during 2020–2023, totaling 50 firms, with 13 companies selected through purposive sampling. Data were analyzed using multiple linear regression and classical assumption tests with SPSS 26. Theoretical framework is based on Legitimacy Theory and Stakeholder Theory. Findings – The results show that ESG disclosure does not have a significant effect on firm value (Tobin’s Q). In contrast, Return on Equity (ROE) has a positive and significant effect on firm value. This indicates that investors place greater emphasis on financial performance than ESG disclosure in evaluating firm value. Originality/value – This study provides empirical evidence from an emerging market context that financial performance remains a dominant determinant of firm value compared to ESG disclosure, contributing to the ongoing debate on sustainable investment relevance.]]>
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