MEDIA EXPOSURE AS A MODERATOR IN THE ESG-FIRM VALUE RELATIONSHIP
Investor demands today take into account not just financial risks but also how a company's operations affect society, the environment, and governance, all of which impact the company's success over the long and short terms. Media exposure in the digital era is also a company strategy for...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
FINTECH Alliance LLC
2025-04-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
| Subjects: | |
| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/4699 |
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| Summary: | Investor demands today take into account not just financial risks but also how a company's operations affect society, the environment, and governance, all of which impact the company's success over the long and short terms. Media exposure in the digital era is also a company strategy for conveying information that will be profitable in improving the company's image and reputation. This study aims to investigate the relationship between the elements of ESG disclosure and firm value, as well as the moderating role of media exposure in this relationship. All companies listed between 2019 and 2023 on the Indonesia Stock Exchange comprise the population under study. Purposive sampling is used, and the final sample consists of 360 firms. This study's data analysis makes use of the Random Effect Model. The findings of this study demonstrate that, whereas social disclosure has no influence on business value, environmental, governance, and ESG disclosures all have a favourable impact on it, indicating that companies with stronger ESG policies typically have better market valuations and stock prices. Media exposure also increases this effect. The implications of this research can be informing regulators that ESG disclosure, especially social disclosure, is still low even though sustainability reports have been mandatory since 2020. This research also illustrates the importance of investing in media exposure in conveying the information needed to stakeholders and providing input for business actors, to run an efficient business through the optimal use of media. Additionally, the study demonstrates that media exposure strengthens this relationship indicating that media attention might increase the beneficial financial effects of ESG initiatives. These results highlight how crucial it is for businesses looking to improve their financial performance and draw in long-term investors to include ESG practices.
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| ISSN: | 2306-4994 2310-8770 |