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

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

DOI
10.15294/aaj.v15i1.30269
ISSN
2502-6216, 2252-6765
Published
2026-09-07
Publisher
Universitas Negeri Semarang
Language
eng

Abstract

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.

Keywords

Collaboration network of the authors

40 authors · 47 co-authorship links · showing the 40 most connected

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Universitas Halu Oleo
  • Mercu Buana University
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Ahmad NurkhinAffiliation unknown3
Niken Lady JunitaAffiliation unknown2
Nanik Sri UtaminingsihAffiliation unknown2
Wa Ode Sitti ZubaydahUniversitas Halu Oleo1
Achmad FudholiAffiliation unknown1
Rafly Perdana BrilianAffiliation unknown1
Nurul HudaAffiliation unknown1
Yadi SupriyadiAffiliation unknown1
Tri Jatmiko Wahyu PrabowoAffiliation unknown1
Sari Maylia PramonoAffiliation unknown1
Ajeng Pangestuning PurwokoAffiliation unknown1
Bestari Dwi HandayaniAffiliation unknown1
Rizki Aulia RachmanAffiliation unknown1
Slamet RiyadiMercu Buana University1
Febrica Dewi ParamitaAffiliation unknown1
Mirza Nurdin NugrohoAffiliation unknown1
Rosyiqoh Haida LutfianaAffiliation unknown1
Sendyvia CandraAffiliation unknown1
Zayyinatul KhasanahAffiliation unknown1
Amanda Kyka MarharaniAffiliation unknown1
Yasin FadilAffiliation unknown1
Azizatul LaeliAffiliation unknown1
Dita MuktiningtyasAffiliation unknown1
Rizki RahmawatiAffiliation unknown1
Oki PrasantiAffiliation unknown1
Rauf Alvian PrasetyaAffiliation unknown1
Jalu Wicaksono ArdiAffiliation unknown1
Shinta WijayaningsihAffiliation unknown1
Margunani MargunaniAffiliation unknown1
Siti Fiki IkmahAffiliation unknown1
Tuti OktavianiAffiliation unknown1
Azizatul FikriyahAffiliation unknown1
Sri Rizky RahayuningtyasAffiliation unknown1
Dwi LestariAffiliation unknown1
Retno Ariyani Puji LestariAffiliation unknown1
Sari WidyastutiAffiliation unknown1
Nur BarokahAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/aaj/oai, first harvested 5 Nov 2026, last seen 5 Nov 2026.
Original metadata (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>
</oai_dc:dc>