ESG Disclosure, Political Connection, And Firm Value: An Empirical Analysis

Authors

  • Rinaldi Anggoro Ekasaputra Perbanas Institute, Jakarta, Indonesia
  • Fitri Purwiyanto Perbanas Institute, Jakarta, Indonesia
  • Dian Kurniawati Perbanas Institute, Jakarta, Indonesia
  • Andhika Ahmad Putra Perbanas Institute, Jakarta, Indonesia

DOI:

https://doi.org/10.38035/sijdb.v4i1.387

Keywords:

ESG Discloure, Political Connection, Firm Value, Tobin's Q, LQ45 Index

Abstract

This study aims to analyze the effect of ESG (Environment, Social, Governance) disclosure and political connections on firm value. The object of this study is companies listed on the Indonesia Stock Exchange and included in the Liquid 45 Index (LQ45) list in 2022-2024. ESG disclosure is measured based on the Global Reporting Initiative Standard checklist, while political connections are measured by the ratio between the members of the board of commissioners and directors who are politically connected to the total members of the board of commissioners and directors in the company. Meanwhile, firm value is measured using the Tobin’s Q calculation method. This study uses a purposive sampling method with a sample of 39 companies. The analysis was conducted using panel data regression. The results of the study show that ESG disclosure and political connections have no effect on firm value, which indicates that sustainability signals and political affiliations have not been fully appreciated by the market as drivers of fundamental company value in the LQ45 index.

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Published

2026-09-01

How to Cite

Anggoro Ekasaputra, R., Purwiyanto, F., Kurniawati, D., & Ahmad Putra, A. (2026). ESG Disclosure, Political Connection, And Firm Value: An Empirical Analysis. Siber International Journal of Digital Business (SIJDB), 4(1), 398–405. https://doi.org/10.38035/sijdb.v4i1.387

Issue

Vol. 4 No. 1 (2026): (SIJDB) Siber International Journal of Digital Business (July - September 2026)

Section

Articles

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Copyright (c) 2026 Rinaldi Anggoro Ekasaputra, Fitri Purwiyanto, Dian Kurniawati, Andhika Ahmad Putra

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