MODERATING ROLE OF BOARD OF COMMISSIONERS AND AUDIT COMMITTEE MEETING FREQUENCY ON THE ESG AND FIRM VALUE RELATIONSHIP IN INDONESIA
DOI:
https://doi.org/10.29303/jaa.v11i1.865Keywords:
ESG performance, firm value, board meetings, audit committee meetings, corporate governanceAbstract
This study examines the moderating role of the Frequency of Board of Commissioners Meetings and the Frequency of Audit Committee Meetings in the relationship between ESG performance and firm value. Using 159 firm-year observations from 60 non-financial companies listed on the Indonesia Stock Exchange during 2021–2023, we obtained data from MSCI and OSIRIS and analyzed them using moderated multiple regression. The results show that ESG performance has a positive and significant effect on firm value, consistent with agency and stakeholder theories. The Frequency of Board of Commissioners Meetings does not significantly moderate the relationship between ESG performance and firm value. In contrast, the Frequency of Audit Committee Meetings significantly moderates the relationship in the opposite direction to the hypothesized effect, weakening the positive relationship between ESG performance and firm value. These findings indicate that the relationship between ESG performance and firm value may vary with the characteristics of corporate governance oversight. The findings also highlight that meeting frequency, when considered as a quantitative governance measure, may not fully capture the substantive aspects of oversight. This study has implications for management, investors, and regulators by emphasizing the importance of considering the quality and substance of corporate governance oversight alongside meeting frequency.
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