Influence of Environmental, Social and Governance (ESG) on Firm Value: Literature Review

Wahfi Zuli(1Mail),
(1) Universitas Bengkulu, Indonesia

Mail Corresponding Author
Copyright (c) 2023 Wahfi Zuli

DOI : https://doi.org/10.37638/bima.4.2.207-213

Full Text:  

Abstract


This research aims to classify relevant research regarding the impact of Firm performance in Environmental, Social and Governance (ESG) on Firm value in recent years through a literature review. The research was conducted by collecting 30 articles related to the topic of ESG and Firm Value in terms of research methods and Firm characteristics. It is hoped that the results of this research can provide a reference for companies in understanding opportunities and risks and for investors to optimize investment portfolios related to the influence of ESG on Firm value.

References


Abdi, Y., Li, X., & Càmara-Turull, X. (2020). Impact of sustainability on firm value and financial performance in the air transport industry. Sustainability (Switzerland) , 12 (23), 1–22. https://doi.org/10.3390/su12239957

Abdi, Y., Li, X., & Càmara-Turull, X. (2022). Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in the airline industry: the moderating role of size and age. Environment, Development and Sustainability , 24 (4), 5052–5079. https://doi.org/10.1007/s10668-021-01649-w

Adhi, RE, & Cahyonowati, N. (2023). The Influence of Environmental , Social , and Governance Disclosure on Firm Value with Firm Size as a Moderating Variable (Empirical Study of Non-Financial Companies on the Indonesian Stock Exchange 2019-2021). Diponegoro Journal of Accounting , 12 (3), 1–12.

Alexander, N. (2023). Green Accounting and Firm Value . GATR Accounting and Finance Review , 7 (4), 12–18. https://doi.org/10.35609/afr.2023.7.4(2)

Aras, G., & Hacioglu Kazak, E. (2022). Enhancing Firm Value through the Lens of ESG Materiality: Evidence from the Banking Sector in OECD Countries. Sustainability (Switzerland) , 14 (22). https://doi.org/10.3390/su142215302

Area, U.M. (2023). The Influence of Environmental, Social and Governance Disclosure ( ESG) on Firm Value in Food and Beverage Sub-Sector Manufacturing Companies Listed on the Indonesian Stock Exchange 2017-2021 Thesis by : Hedar Ria Wau Accounting Study Program, Faculty of Economics and Business, University of Medan, Medan Area The Influence of Environmental, Social and Governance Disclosure (ESG) on the Value of Companies in Beverages Listed on the Indonesian Stock Exchange in 2017-2021 Thesis Submitted as One of the Requirements for Obtaining a Bachelor's Degree at the Faculty of Economics and Business, Medan Area University By : HEDAR RIA WAU .

Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review , 22 , S119–S127. https://doi.org/10.1016/j.bir.2022.11.006

Bakri, MA, Abd Jalil, MI, & Hassan, Z. (2022). Can ESG Increase Firm Value in the Banking Institution and Financial Services in Malaysia? An Insight from Social Norm Theory. Global Business and Management Research: An International Journal , 14 (3s), 209–221. www.ussif.org/store_product.asp?prodid=34

Chang, Y. J., & Lee, B. H. (2022). The Impact of ESG Activities on Firm Value: Multi-Level Analysis of Industrial Characteristics . Sustainability (Switzerland) , 14 (21). https://doi.org/10.3390/su142114444

Cho, Y. (2022). ESG and Firm Performance: Focusing on the Environmental Strategy. Sustainability (Switzerland) , 14 (13). https://doi.org/10.3390/su14137857

Duan, Y., Yang, F., & Xiong, L. (2023). Environmental, Social, and Governance (ESG) Performance and Firm Value: Evidence from Chinese Manufacturing Firms . Sustainability (Switzerland) , 15 (17). https://doi.org/10.3390/su151712858

Fuadah, LL, Mukhtaruddin, M., Andriana, I., & Arisman, A. (2022). The Ownership Structure, and the Environmental, Social, and Governance (ESG) Disclosure, Firm Value and Firm Performance: The Audit Committee as Moderating Variable. Economies , 10 (12). https://doi.org/10.3390/economies10120314

Kartikasary, M., Paramastri Hayuning Adi, M., Marojahan Sitinjak, M., Hardiyansyah, & Yolanda Sari, D. (2023). Environmental, Social and Governance (ESG) Report Quality and Firm Value in Southeast Asia. E3S Web of Conferences , 426 , 02087. https://doi.org/10.1051/e3sconf/202342602087

Kirani, AM (2022). The Influence of Environmental Social and Governance (ESG) Reporting on Firm Value with Cost Efficiency as a Moderating Variable .

Kong, L., Akbar, M., & Poulova, P. (2023). The Role of Environmental, Social, and Governance Performance in Shaping Corporate Current and Future Value: The Case of Global Tech Leaders. Sustainability (Switzerland) , 15 (17). https://doi.org/10.3390/su151713114

Kong, Y., Agyemang, A., Alessa, N., & Kongkuah, M. (2023). The Moderating Role of Technological Innovation on Environment, Social, and Governance (ESG) Performance and Firm Value: Evidence from Developing and Least-Developed Countries. Sustainability (Switzerland) , 15 (19). https://doi.org/10.3390/su151914240

Loh, L., Thomas, T., & Wang, Y. (2017). Sustainability Reporting and firm value: Evidence from Singapore-listed companies. Sustainability (Switzerland) , 9 (11), 1–12. https://doi.org/10.3390/su9112112

Ma, D., Li, L., Song, Y., Wang, M., & Han, Q. (2023). Corporate Sustainability: The Impact of Environmental, Social, and Governance Performance on Corporate Development and Innovation. Sustainability (Switzerland) , 15 (19). https://doi.org/10.3390/su151914086

Mohamad, NEAB (2020). Do Environmental, Social, and Governance Practices (ESG) Signify Firm Value ? Evidence from FTSE4Good Bursa Malaysia ( F4GBM ). Global Business and Management Research: An International Journal , 12 (4), 365–376.

Naeem, N., Cankaya, S., & Bildik, R. (2022). Does ESG performance affect the financial performance of environmentally sensitive industries? A comparison between emerging and developed markets. Borsa Istanbul Review , 22 , S128–S140. https://doi.org/10.1016/j.bir.2022.11.014

Nguyen, D.T., Hoang, T.G., & Tran, H.G. (2022). Help or Hurt? The Impact of ESG on Firm Performance in S&P 500 Non-Financial Firms. Australasian Accounting, Business and Finance Journal , 16 (2), 91–102. https://doi.org/10.14453/aabfj.v16i2.7

Osisioma, P., & Benjamin, C. (2019). Sustainability Disclosures And Market Value Of Firms In Emerging Economy : Evidence From Nigeria . 7 (3), 1–19.

Qu, W., & Zhang, J. (2023). Environmental, Social, and Corporate Governance (ESG), Life Cycle, and Firm Performance : Evidence from China . 1–21.

Quintiliani, A. (2022). ESG and Firm Value. Accounting and Finance Research , 11 (4), 37. https://doi.org/10.5430/afr.v11n4p37

Sadiq, M., Singh, J., Raza, M., & Mohamad, S. (2020). The impact of environmental, social and governance index on firm value: Evidence from Malaysia. International Journal of Energy Economics and Policy , 10 (5), 555–562. https://doi.org/10.32479/ijeep.10217

Tahmid, T., Hoque, M.N., Said, J., Saona, P., & Azad, M.K. (2022). Do ESG initiatives yield greater firm value and performance? New evidence from European firms. Cogent Business and Management , 9 (1). https://doi.org/10.1080/23311975.2022.2144098

Thahira, AM, & Mita, AF (2021). ESG Disclosure and Firm Value: Family versus Nonfamily Firms. Proceedings of the Asia-Pacific Research in Social Sciences and Humanities University of Indonesia Conference (APRISH 2019) , 558 (Aprish 2019), 653–657. https://doi.org/10.2991/assehr.k.210531.081

Wahdan Arum Inawati, & Rahmawati, R. (2023). Environmental, Social and Governance (ESG) Impact on Financial Performance. Journal of the Academy of Accountancy , 6 (2), 225–241. https://doi.org/10.22219/jaa.v6i2.26674

Wu, S., Li, X., Du, X., & Li, Z. (2022). The Impact of ESG Performance on Firm Value: The Moderating Role of Ownership Structure. Sustainability (Switzerland) , 14 (21), 1–22. https://doi.org/10.3390/su142114507

Yoon, B., Lee, J. H., & Byun, R. (2018). Does ESG performance enhance firm value? Evidence from Korea. Sustainability (Switzerland) , 10 (10). https://doi.org/10.3390/su10103635

Yu, X., & Xiao, K. (2022). Does ESG Performance Affect Firm Value? Evidence from a New ESG-Scoring Approach for Chinese Enterprises. Sustainability (Switzerland) , 14 (24), 1–40. https://doi.org/10.3390/su142416940

Zhang, F., Qin, X., & Liu, L. (2020). The interaction effect between ESG and green innovation and its impact on firm value from the perspective of information disclosure. Sustainability (Switzerland) , 12 (6). https://doi.org/10.3390/su12051866

Мустафина, С. В., Винтер, Д. А., Рымар, О. Д., Щербакова, Л. В., Сазонова, О. В., & Малютина, С. К. (2021). The Influence of Environmental, Social, Governance (ESG) and Retention Ratio on Stock Returns with Firm Value as a Moderating Variable. Атеросклероз , 17 (1), 52–61.


Article Metrics

Abstract Views : 9 times
PDF Downloaded : 8 times

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Wahfi Zuli

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

________________________________________________________________

BIMA Journal views StatisticBIMA Journal Stat

BIMA Journal indexed by:

JournalStories Main logo 

Secretariat Office:
Wisma PDM Bengkulu
Mail  : Jl. Kebun Veteran No 12, Kel. Nusa Indah Kec. Ratu Agung Kota Bengkulu
Telp  : 082138129668/081541234500/081328676033
email: bima@pdmbengkulu.org

 
Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License