The Influence of ESG Dividend Policy on Firm Value in Non-Financial Companies Listed on the BEI in 2021-2023

Juliana Putri; Iwan Kusmayadi

doi:10.55927/eajmr.v4i4.114

Authors

Juliana Putri Mataram University
Iwan Kusmayadi Mataram University

DOI:

https://doi.org/10.55927/eajmr.v4i4.114

Keywords:

Environmental, Social, Governance, Dividend Policy, Firm Value, Non-Financial Firms

Abstract

This study investigates the impact of Environmental, Social, and Governance (ESG) factors and dividend policy on the value of non-finansial companies listed on the Indonesian Depository Exchange (IDX) during the 2021-2023 fiscal year. The sample consists of 68 companies with secondary data obtained from Thomson Reuters Eikon Refinitiv and financial statements. Analysis employing panel data regression reveals a positive and statistically significant impact of the environmental and governance pillars on firm value, while the social pillar exhibits No. discernible effect. Dividend policy doesn’t influence the connection between environmental, social, and governance (ESG) factors and a firm’s value. The findings confirm that sustainability and good governance practices increase firm value, so companies are advised to strengthen transparency and environmental policies to attract investors and improve competitiveness.

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