The Effect of Ownership Structure and ESG Disclosure on Firm Value of State-Owned Banks During The 2021Q1–2025Q4 Period

Abstract

This study aims to examine and analyze the effect of institutional ownership, public ownership, and Environmental, Social, and Governance (ESG) disclosure on firm value in Indonesian state-owned banks (BUMN) listed on the Indonesia Stock Exchange, with firm size used as a control variable. A quantitative causal (explanatory) approach was applied to quarterly panel data covering 2021Q1–2025Q4 for five state-owned banks (BBRI, BMRI, BBNI, BBTN, and BRIS), yielding 100 observations. Firm value is proxied by Price to Book Value (PBV); institutional and public ownership are measured by the percentage of outstanding shares; and ESG is measured through content analysis based on 30 Global Reporting Initiative (GRI) indicators. Data were analyzed using panel data regression, with the Fixed Effect Model (FEM) selected as the best model and estimated through Panel EGLS with cross-section weighting to address heteroscedasticity. The results show that institutional ownership has a positive and significant effect on firm value, public ownership has a negative and significant effect, while ESG has a negative but insignificant effect. Simultaneously, institutional ownership, public ownership, and ESG significantly affect firm value, with an Adjusted R² of 89.60%. These findings indicate that institutional monitoring mechanisms remain the primary determinant of state-owned bank value, while ESG disclosure has not yet become a major consideration for investors in the Indonesian capital market.