How To Increase the Company's Value by Integrating ESG Risk, Profitability, and Eco-Efficiency

Autor(s): B. Sundari, Dewi Safitria Sari
DOI: 10.35760/ugefic.v8i1.163

Abstract

This study examines the impact of ESG risks, profitability, and ecological efficiency on the value of companies listed on the Indonesia Stock Exchange (IDX) during the period 2021-2024. Data was obtained from financial reports, sustainability reports, and other ESG data sources. The analysis methods used include descriptive statistics and multiple linear regression. The research findings show that ESG risk and profitability have a positive and significant influence on firm value, while ecological efficiency has a positive but insignificant effect. Together, the three variables have a significant influence on firm value. The implication of this study is the importance of integrating sustainability practices into corporate strategy to increase firm value.

Keywords

eco-efficiency, ESG risk, firm value, profitability

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References

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