The Influence of Social and Environmental Disclosure on Firm Value Moderated by External Assurance

DOI

10.2991/978-94-6463-758-8_139How to use a DOI?

Keywords

social disclosure; environmental disclosure; external assurance; firm value

Abstract

The purpose of this research is to examine and analyze how social and environmental disclosure affects firm value, and its interaction with external assurance affects this relationship. Research of this kind is quantitative in nature. The study focused on mining businesses that were listed between 2019 and 2023 on the Indonesia Stock Exchange (IDX). Annual reports are the source of research data, which may be accessed on each company’s official website. The research sample consists of 36 companies and 180 observations. Purposive sampling is used to select samples. Using STATA software version 17, a panel data regression analysis utilizing a random effects model was conducted to examine the data. The results suggest that environmental disclosure positively impacts firm value, while social disclosure has a negative effect. Furthermore, moderation analysis revealed that external assurance, a factor moderating both social and environmental disclosure, does not significantly influence firm value. These findings suggest that corporate management ought to adopt strategic approaches to social and environmental disclosures to ensure that the benefits exceed the costs, thereby positively impacting firm value and investor sentiment. What sets this study apart is its examination of the separate effects of social and environmental disclosures on firm value. Furthermore, this research expands the existing literature on introducing external assurance as a moderating variable, an area that has not been widely studied.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Diza Kurnianty Jamal
AU  - Arifuddin Arifuddin
AU  - Afdal Madein
PY  - 2025
DA  - 2025/07/30
TI  - The Influence of Social and Environmental Disclosure on Firm Value Moderated by External Assurance
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 1757
EP  - 1773
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_139
DO  - 10.2991/978-94-6463-758-8_139
ID  - Jamal2025
ER  -