The Influence of Environmental, Social, Governance Disclosure and Investment Opportunity Set on Company Value Moderated by Good Governance in the Banking Industry in Indonesia
This study aims to analyze and compare the effects of Environmental, Social, and Governance (ESG) disclosure and the Investment Opportunity Set (IOS) on firm value, while examining the moderating role of Board of Directors (BOD) size in state-owned and private banks. Utilizing a quantitative approach with panel data, the sample comprises 6 state-owned banks and 17 private banks from 2020 to 2025. Data analysis was conducted using panel data regression via EViews 13. The empirical results reveal a significant difference in the impact of ESG disclosure between the two bank categories; ESG disclosure has a significant negative effect on firm value in state-owned banks, whereas it exerts a significant positive effect in private banks. Meanwhile, IOS consistently demonstrates a significant positive impact on firm value across both bank groups, showing no significant difference between them. Regarding the moderating effects, BOD size is found to influence firm value but fails to significantly moderate the relationship between ESG disclosure and firm value in either bank type. Conversely, a significant difference is observed in how BOD size moderates the IOS-firm value relationship; BOD size significantly strengthens (positively moderates) this relationship in state-owned banks, but significantly weakens (negatively moderates) it in private banks