Published date: Oct 10 2024

Journal Title: KnE Social Sciences

Issue title: 8th International Conference on Sustainability (8th ICoS): Entrepreneurship and Creative Economics

Pages: 394–420

DOI: 10.18502/kss.v9i28.17294

Farah Nur Fauziahfarahnurfauziah@stiedarulfalahmojokerto.ac.idGraduate Student of Accounting, University of Merdeka Malang, Malang

Grahita ChandrarinGraduate School, Economic Science, University of Merdeka Malang, Malang

Diyah Sukanti CahyaningsihFaculty of Economic and Business, University of Merdeka Malang, Malang

Parawiyati ‎ Graduate School, Economic Science, University of Merdeka Malang, Malang

This research analyzes the influence of environmental social governance, research and development, intellectual capital, and leverage on firm value. Three control variables are included: size, age, and type of company. Secondary data in the form of ESG risk scores and annual reports of 22 companies listed on IDX ESG leaders for the 2018-2022 period with a total of 110 observations is used. The data analysis employs is multiple linear regression. The research results reveals that research and development influences company value, meaning that the level of R&D can impact the value and sustainability of the company. Intellectual capital influences company value, showing that increased productivity due to creativity, expertise that comes from knowledge, and the support of good systems and relationships can improve the company. Meanwhile, environmental social governance does not affect firm value because markets in developing countries are at a stage of economic growth and development that pays more attention to the scale and speed of economic growth and financial indicators than environmental, social, and governance responsibilities. Leverage does not effect firm value because changes in leverage tend not to affect stock prices in the market.

Keywords: firm value, environmental social governance, research and development, intellectual capital, leverage

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