ESG Performance and Firm Value of Mining Companies: The Moderating Role of Auditor Reputation
DOI:
https://doi.org/10.54099/ijamb.v4i2.1946Keywords:
ESG Performance, Firm Value, Auditor Reputation, Tobin’s Q, Mining CompaniesAbstract
Purpose – This study examines the effect of Environmental, Social, and Governance (ESG) performance on the firm value of mining companies listed on the Indonesia Stock Exchange (IDX) during 2023–2024, and tests whether auditor reputation moderates this relationship.
Methodology/approach – Using a quantitative causal design, 39 mining and energy firms over two years (78 firm-year observations) were analysed via purposive sampling. Firm value is proxied by Tobin’s Q and ESG by the IDX/Katadata ESG score, with auditor reputation as a Big Four dummy. Panel data regression (Fixed Effect Model with White robust standard errors) was estimated in EViews.
Findings – It ESG performance has no significant effect on firm value; auditor reputation has no significant effect; and auditor reputation does not moderate the ESG–firm-value relationship. Among controls, firm size is negative and significant, while ROA and leverage are insignificant.
Novelty/value – The study offers emerging-market evidence from Indonesia’s extractive sector and shows that conventional financial-statement audit reputation does not substitute for dedicated ESG assurance, underscoring the need for independent sustainability assurance.
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