ESG Disclosure, Digital Financial Transparency, and Firm Value: Evidence from Manufacturing Companies in Indonesia

Meny Hulisellan

doi:10.30640/jmcbus.v4i3.6878

Authors

Meny Hulisellan Politeknik Negeri Ambon

DOI:

https://doi.org/10.30640/jmcbus.v4i3.6878

Keywords:

Digital Financial Transparency, ESG Disclosure, Firm Value, Information Transparency, Manufacturing

Abstract

This study aims to examine the effect of Environmental, Social, and Governance (ESG) disclosure and digital financial transparency on the firm value of manufacturing companies listed on the Indonesia Stock Exchange during the 2021–2025 period. The study employs a quantitative approach with an explanatory research design. Samples were selected using purposive sampling based on the availability of annual reports, sustainability reports, complete financial statements, stock market data, and financial information published on the companies’ official websites. Firm value was measured using Tobin’s Q. The independent variables consisted of ESG disclosure and digital financial transparency, while firm size, profitability, leverage, sales growth, and firm age were included as control variables. Data were analyzed using panel data regression. The results indicate that ESG disclosure has a positive effect on firm value, suggesting that sustainability practices provide positive signals to investors regarding corporate responsibility, risk management, and good governance. Furthermore, digital financial transparency positively affects firm value by reducing information asymmetry, improving access to financial information, and strengthening investor confidence. These findings imply that enhancing ESG reporting quality and digital financial transparency can improve corporate credibility and support sustainable value creation. The study also provides empirical support for Signaling Theory, Stakeholder Theory, Legitimacy Theory, and Agency Theory in explaining how sustainability disclosure and financial transparency influence investor perceptions in capital markets.

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