Proceedings of the 4th International Conference on Management and Business (ICOMB 2025)

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The Effect of ESG on Firm Value and Implications for Sustainability

Authors
Risal Rinofah1, *, Pristin Prima Sari1, Yhoga Heru Pratama1, Irwan Trinugroho2, Shapan Chandra Majumder3
1Universitas Sarjanawiyata Tamansiswa, Yogyakarta, Indonesia
2Universitas Sebelas Maret, Surakarta, Indonesia
3Comilla University, Comilla, Bangladesh
*Corresponding author. Email: risal.rinofah@ustjogja.ac.id
Corresponding Author
Risal Rinofah
Available Online 24 April 2026.
DOI
10.2991/978-94-6239-656-2_11How to use a DOI?
Keywords
ESG; Firm Value; IDX; Sustainable
Abstract

Environment, Social, and Governance (ESG) is a new theory in the business world and is now being developed in academic research. The purpose of this research is to empirically test the influence of Environment, Social, and Governance (ESG) on Firm Value and its impact on sustainability. The urgency of this research is that companies are encouraged to pay attention to the implementation of ESG in business operations. ESG pays attention to environmental issues that are correlated with social and governance, so it is important to gain stakeholder trust where companies not only pursue profits but also pay attention to environmental, social, and governance impacts. The research stages are first, Literature Study, Second, Data Sources, Third, Data Tabulation and Data Processing, and finally, analysis of results and publication. The method uses quantitative methods for the capital market on the Indonesia Stock Exchange using SPSS 25 and using financial reports for 2024–2025. The research sample is companies listed on the Indonesia Stock Exchange in 2024–2025. The results show that ESG has a significant effect on Firm Value, but ESG has no impact on sustainability, while Firm Value has a significant influence on sustainability. The benefits of this research are for the development of research on ESG management science, Firm Value, and Sustainability. The contribution of research to Firm management is to consider the investment manager for sustainable policy and firm value.

Copyright
© 2026 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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Volume Title
Proceedings of the 4th International Conference on Management and Business (ICOMB 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
24 April 2026
ISBN
978-94-6239-656-2
ISSN
2352-5428
DOI
10.2991/978-94-6239-656-2_11How to use a DOI?
Copyright
© 2026 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.

Cite this article

risenwbib
TY  - CONF
AU  - Risal Rinofah
AU  - Pristin Prima Sari
AU  - Yhoga Heru Pratama
AU  - Irwan Trinugroho
AU  - Shapan Chandra Majumder
PY  - 2026
DA  - 2026/04/24
TI  - The Effect of ESG on Firm Value and Implications for Sustainability
BT  - Proceedings of the 4th International Conference on Management and Business (ICOMB 2025)
PB  - Atlantis Press
SP  - 134
EP  - 145
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-656-2_11
DO  - 10.2991/978-94-6239-656-2_11
ID  - Rinofah2026
ER  -