ESG Disclosure, Firm Size, and Stock Prices: Evidence from IDX Leaders Mining Companies, 2020–2024

Abstract

This study examined the effect of Environmental, Social, and Governance (ESG) disclosure and firm size on stock prices of mining companies listed in the Indonesia Stock Exchange (IDX) Leaders Index during the 2020–2024 period. A quantitative research approach was employed using secondary data obtained from sustainability reports. The sample was selected through purposive sampling, and the data were analyzed using descriptive statistics and multiple linear regression analysis. The findings indicated that ESG disclosure had a positive and significant effect on stock prices, while firm size had a negative and significant effect. Simultaneously, ESG disclosure and firm size significantly affected stock prices, with the model explaining 46% of the variation in stock prices. The results suggested that investors positively responded to ESG disclosure, whereas larger firm size did not necessarily lead to higher stock prices in the mining sector. This study was limited to mining companies included in the IDX Leaders Index during 2020–2024 and only examined ESG disclosure and firm size. The findings contributed to the literature by providing empirical evidence on the relationship between ESG disclosure, firm size, and stock prices in the Indonesian capital market.

Keywords

ESG Disclosure Firm Size Stock Price