How Ownership Structure and ESG Disclosure Influence Firm Value and Performance: Unveiling the Audit Committee's Moderating Effects
Authors
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Imam Prayogo
Accounting D3, Department of Business and Finance, Vocational School, Universitas Diponegoro, Pekalongan, Indonesia
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Rini Setiawati
Faculty of Da'wah and Communication Science, Universitas Islam Negeri Raden Intan Lampung, Bandarlampung, Indonesia
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Caroline Jariatu Bah
Department of Business Management and Administration, Faculty of Business and Entrepreneurship, Ernest Bai Koroma University, Sierra Leone, West Africa
DOI:
https://doi.org/10.69725/ami.v1i1.98
Keywords:
Company Characteristics, Corporate Governance, Audit Quality, Earnings ManagementAbstract
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.
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