THE EFFECT OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND RELATED PARTY TRANSACTIONS ON FIRM VALUE

Abstract

This study aims to examine whether there is an effect of Environmental, Social, and Governance (ESG) Performance and Related Party Transactions on Firm Value. The population in this study are non-financial companies listed on the Indonesia Stock Exchange in the ESG Leaders stock index (IDXESGL) during the period 2021-2024. The number of samples in this study were 116 observations from 29 non-financial companies. The sampling technique used purposive sampling method. The research method used is quantitative with data sources in the form of secondary data. The results of this study provide empirical evidence that partially the Environmental, Social, and Governance (ESG) Performance variable has no significant effect on Firm Value, but Related Party Transactions have a significant negative effect on Firm Value and Company Size as a control variable has no significant effect on Firm Value. Simultaneously, the variables of Environmental, Social, and Governance (ESG) Performance and Related Party Transactions and Company Size as control variables have a significant effect on Firm Value.