The Effect of ESG Disclosure on Firm Value: A Study of Companies Listed on the Indonesian Stock Exchange in the Manufacturing Sector

Dewi Ayu Dyah Ningrum (Universitas Negeri Malang)
Salsabila Citra Devi (Universitas Negeri Malang)
Ely Siswanto (Universitas Negeri Malang)
Subagyo Subagyo (Universitas Negeri Malang)

Formosa Journal of Applied Sciences (FJAS)
Vol. 4 No. 12 (2025): December 2025

This study aims to analyze the effect of ESG disclosure on firm value in 35 manufacturing companies listed on the Indonesia Stock Exchange in 2024. Using a quantitative method with simple linear regression analysis, the result shows that ESG disclosure does not have a significant effect on firm value (sig. 0.480 > 0.05). The average level of ESG disclosure reached 90.26%, but the average Tobin's Q value of 0.4563 indicates undervaluation. This finding indicates that investors in Indonesian capital market are still more focusing on short-term financial performance indicators than sustainability factors. This study contributes to the ESG literature in emerging capital markets by confirming mixed findings in the relationship between ESG disclosure and firm value.