The Impact of Environment, Social, Governance and Foreign Ownership on Value of the Firm in Case Indonesia

This study examines the impact of Environment, Social, and Governance (ESG) performance and foreign ownership on firm value in Indonesia. ESG awareness and compliance may differ from developed countries in these developing countries. Using stakeholder and legitimacy theories, we hypothesize that ESG performance and foreign ownership positively affect firm value and that foreign ownership strengthens the relationship between ESG performance and firm value. We test our hypotheses on a sample of manufacturing companies listed on the Indonesia Stock Exchange in 2022, using multiple linear regression analysis in Smart PLS-4.