How Ownership Structure and ESG Disclosure Influence Firm Value and Performance: Unveiling the Audit Committee's Moderating Effects

Purpose: This study aims to assess the impact of corporate ownership structures and Environmental, Social, and Governance (ESG) disclosures on firm value and performance, while also examining the moderating role of the audit committee.Method: Using secondary data from 700 sample listed on the Indonesia Stock Exchange for the period 2018-2023, this study employs multiple regression analysis and Structural Equation Modeling (SEM) to analyze the relationships between variables.Findings: The results indicate that foreign and public ownership significantly enhance ESG disclosure. ESG disclosure positively affects firm value, with a significant moderating effect from the audit committee. However, state and family ownership do not significantly influence ESG disclosure, and ESG disclosure does not directly impact firm performance.Novelty: This study introduces new insights into how different ownership structures affect ESG disclosure and highlights the crucial role of the audit committee in influencing firm value, an area previously underexplored in Indonesian corporate settings.Implications: The findings underscore the importance of effective ESG practices and the role of diverse ownership structures in improving firm value. It suggests that firms should focus on enhancing ESG disclosures and leverage the audit committee's role to strengthen their market position.

• Publication year

  2024

• Venue

  Advances in Management Innovation

• Publication date

  2024-09-10

• Fields of study

  Not labeled

• Identifiers
  DOI 10.69725/ami.v1i1.98
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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