ESG Disclosure, Intellectual Capital, and Firm Value: Moderating Role of Board Independence

Abstrak

This study aims to examine the effect of ESG Disclosure and Intellectual Capital on firm value, as well as the moderating role of Board Independence on both relationships. The study is grounded in Stakeholder Theory and Agency Theory, with a sample of consumer non-cyclicals sector companies listed on the Indonesia Stock Exchange (BEI) for the period 2017–2024. Analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS. Results indicate that ESG Disclosure does not significantly affect firm value, suggesting that the Indonesian capital market has yet to fully incorporate sustainability information into equity valuation. In contrast, Intellectual Capital measured through the Value Added Intellectual Coefficient (VAIC) is confirmed as the dominant and significant predictor of firm value. Board Independence fails to strengthen the effect of either ESG Disclosure or Intellectual Capital on firm value, indicating that the numerical proportion of independent commissioners does not adequately reflect substantive board oversight. The overall model explains 57.2% of the variance in firm value. These findings underscore the importance of intellectual capital investment as a value creation strategy, while highlighting the need for improved ESG reporting quality and board competency in emerging markets.