ESG Disclosure, Institutional Ownership, and Firm Value: The Moderating Role of Firm Size in Indonesian Energy Companies

Abstract

Firm value reflects market perceptions of a company’s performance and future prospects, while Environmental, Social, and Governance (ESG) disclosure and institutional ownership are increasingly considered important factors related to corporate value. However, previous studies have reported inconsistent findings regarding these relationships, particularly in emerging-market energy companies. This study aims to examine the effects of ESG disclosure and institutional ownership on firm value and to analyze the moderating role of firm size. The study employed a quantitative explanatory design using secondary data from annual reports, financial statements, and sustainability reports of energy-sector companies listed on the Indonesia Stock Exchange during 2022–2025. Purposive sampling resulted in 20 companies with 80 firm-year observations, and the data were analyzed using Moderating Regression Analysis (MRA). The results show that ESG disclosure has no significant effect on firm value (β = −0.038; p = 0.853), whereas institutional ownership has a positive and significant effect on firm value (β = 1.266; p = 0.001). Firm size significantly moderates and weakens the relationship between ESG disclosure and firm value (β = −0.814; p = 0.004). Firm size also significantly weakens the relationship between institutional ownership and firm value (β = −0.760; p = 0.014). These findings indicate that firm size is an important contextual factor that reduces the strength of the relationships between ESG disclosure, institutional ownership, and firm value in Indonesia’s energy sector.