Analysis of the Impact of Environmental, Social, and Governance Disclosure and Return on Assets on Firm Value (Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange, 2022–2025 Period)

Abstract

This study aims to analyze the effect of Environmental, Social, and Governance (ESG) Disclosure and Return on Assets (ROA) on Firm Value, proxied by Price to Book Value (PBV), in Food and Beverage subsector companies listed on the Indonesia Stock Exchange during the 2022–2025 period. This research employed a quantitative approach using secondary data obtained from annual reports, sustainability reports, and financial statements. The sample was selected using a purposive sampling technique, resulting in 18 companies with 72 observations over four years. Data were analyzed using multiple linear regression with IBM SPSS Statistics 25, following classical assumption testing. The results indicate that Environmental, Social, and Governance (ESG) Disclosure has a positive and significant effect on firm value, with a t-value of 5.468 and a significance level of 0.001. Return on Assets (ROA) also has a positive and significant effect on firm value, with a t-value of 4.401 and a significance level of 0.000. Simultaneously, ESG Disclosure and ROA have a positive and significant effect on firm value, as indicated by an F-value of 20.196 and a significance level of 0.000. The coefficient of determination (R Square) is 0.456, indicating that ESG Disclosure and ROA explain 45.6% of the variation in firm value, while the remaining 54.4% is influenced by other factors outside the scope of this study. The findings suggest that improving the quality of ESG disclosure and enhancing profitability through efficient asset utilization can increase firm value and strengthen investors' confidence. Therefore, companies are encouraged to improve sustainability practices and financial performance to maximize firm value.