How ESG Transparency Enhances Market Valuation: Examining Governance Quality in Emerging Market

Yulianto, Agung; Rohman, Abdul; Raharja, Surya

doi:10.15294/aaj.v15i1.30269

Jurnal

How ESG Transparency Enhances Market Valuation: Examining Governance Quality in Emerging Market

Accounting Analysis Journal · Vol. 15 No. 1 (2026) · hlm. 16–28

DOI: 10.15294/aaj.v15i1.30269
ISSN: 2502-6216, 2252-6765
Terbit: 2026-09-07
Penerbit: Universitas Negeri Semarang
Bahasa: eng

Abstrak

Purpose: The study investigates the effect of Environmental, Social, and Governance report on market performance and also examines the moderating effect of corporate governance quality in this relationship. Methods/Study design/Approach: The analysis used panel data from 2018 to 2023, covering nonfinancial firms that registered in the Taiwan Stock Exchange (TWSE) and OTC market. Using 13,119 firm-year observations, we employ fixed-effects regressions with firm and year effects model Result/Findings: Higher ESG disclosure is associated with stronger market valuation. Corporate governance quality significantly enhances this effect, indicating that credible governance improves the value relevance of ESG information. When the ESG components are entered separately, the social pillar shows the strongest association with market value. Robustness checks that exclude the COVID-19 years confirm the stability of these results. Novelty/Originality/Value: The paper enhances the existing ESG literature by emphasizing the significance of corporate governance quality in optimizing the advantages of ESG disclosure. This paper also comparing the three ESG pillars within one framework. The Taiwanese evidence offers policy-relevant insights for ASEAN markets seeking to improve ESG disclosure and corporate governance to reinforce investor trust.

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Jaringan kolaborasi para penulis

11 penulis · 18 tautan kepenulisan bersama · 7 lintas organisasi

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Diponegoro University
State University of Semarang
Sultan Agung Islamic University

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Organisasi sama
Afiliasi tidak diketahui
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Tampilkan sebagai tabel

Rekan penulis	Organisasi	Artikel bersama
Maylia Pramono Sari	State University of Semarang	2
Ahmad Nurkhin	State University of Semarang	1
Agung Yulianto	State University of Semarang	1
Atik Ul Mussanadah	State University of Semarang	1
Arumawan Mei Saputra	State University of Semarang	1
Natasia Alinsari	Diponegoro University	1
Dwi Ratmono	Diponegoro University	1
Rustam Hanafi	Sultan Agung Islamic University	1

Afiliasi berasal dari OpenAlex; metadata OAI-PMH jurnal tidak memuatnya. Penulis tanpa ID OpenAlex dicocokkan berdasarkan nama, sehingga dua orang bisa tergabung atau satu orang bisa terpisah.

Sumber metadata: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/aaj/oai, pertama di-harvest 5 Nov 2026, terakhir terlihat 8 Nov 2026.

Metadata asli (oai_dc)

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	<dc:title xml:lang="en">How ESG Transparency Enhances Market Valuation: Examining Governance Quality in Emerging Market</dc:title>
	<dc:creator xml:lang="en">Yulianto, Agung</dc:creator>
	<dc:creator xml:lang="en">Rohman, Abdul </dc:creator>
	<dc:creator xml:lang="en">Raharja, Surya </dc:creator>
	<dc:subject xml:lang="en">ESG Disclosure</dc:subject>
	<dc:subject xml:lang="en">Corporate Governance Index</dc:subject>
	<dc:subject xml:lang="en">Tobin’s Q</dc:subject>
	<dc:subject xml:lang="en">Market to Book Value</dc:subject>
	<dc:subject xml:lang="en">COVID-19</dc:subject>
	<dc:description xml:lang="en">Purpose: The study investigates the effect of Environmental, Social, and Governance report on market performance and also examines the moderating effect of corporate governance quality in this relationship.
Methods/Study design/Approach: The analysis used panel data from 2018 to 2023, covering nonfinancial firms that registered in the Taiwan Stock Exchange (TWSE) and OTC market. Using 13,119 firm-year observations, we employ fixed-effects regressions with firm and year effects model
Result/Findings: Higher ESG disclosure is associated with stronger market valuation. Corporate governance quality significantly enhances this effect, indicating that credible governance improves the value relevance of ESG information. When the ESG components are entered separately, the social pillar shows the strongest association with market value. Robustness checks that exclude the COVID-19 years confirm the stability of these results.
Novelty/Originality/Value: The paper enhances the existing ESG literature by emphasizing the significance of corporate governance quality in optimizing the advantages of ESG disclosure. This paper also comparing the three ESG pillars within one framework. The Taiwanese evidence offers policy-relevant insights for ASEAN markets seeking to improve ESG disclosure and corporate governance to reinforce investor trust.</dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2026-09-07</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/aaj/article/view/30269</dc:identifier>
	<dc:identifier>10.15294/aaj.v15i1.30269</dc:identifier>
	<dc:source xml:lang="en">Accounting Analysis Journal; Vol. 15 No. 1 (2026); 16-28</dc:source>
	<dc:source>2502-6216</dc:source>
	<dc:source>2252-6765</dc:source>
	<dc:source>10.15294/aaj.v15i1</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/aaj/article/view/30269/11359</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2026 Accounting Analysis Journal</dc:rights>
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