The Influence of Environmental, Social, Governance (ESG), Profitability, and Company Size on Company Value in Food and Beverage Subsector Manufacturing Companies Registered on BEI for the (2020-2024)

Abstract

                  This study aims to analyse the influence of Environmental, Social, and Governance (ESG), profitability, and company size on firm value in food and beverage manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2020–2024 period. This research is motivated by the decline in firm value, as measured by Tobin's Q, during the 2020–2024 period. This decline is suspected to be influenced by weakened investor perceptions of company prospects due to economic pressures following the COVID-19 pandemic, fluctuations in profitability, and the suboptimal implementation of ESG in providing market-appreciated economic benefits. This study uses a quantitative approach with descriptive and causal analysis methods. The data used are secondary data obtained from annual reports, sustainability reports, and the official websites of the Indonesia Stock Exchange and the companies. The study population consisted of 84 food and beverage manufacturing companies listed on the IDX for the 2020–2024 period. A purposive sampling technique was used to determine the sample, resulting in 14 companies. Data analysis was conducted using panel data regression with a Random Effects Model (REM). The results showed that ESG had no significant effect on firm value. Profitability, proxied by Return on Assets (ROA), had a positive and significant effect on firm value, while firm size had a negative and significant effect on firm value. Simultaneously, ESG, profitability, and firm size significantly influenced firm value. This study concluded that firm value is affected by the need to improve profitability optimisation, asset management efficiency, and effective and transparent ESG implementation to increase investor confidence.