The Influence of Investment Opportunity Set (IOS) and ESG on Firm Value Moderated by Firm Growth (A Study of Publicly Listed Companies Participating in ASRRAT and Listed on the IDX, 2022–2025)

Abstract

This study aims to analyze the effect of Investment Opportunity Set (IOS) and Environmental, Social, and Governance (ESG) on firm value, with company growth as a moderating variable, among ASRRAT-participating companies listed on the Indonesia Stock Exchange for the period 2022–2025. A quantitative explanatory approach grounded in signaling theory was employed. A sample of 33 companies was selected through purposive sampling, resulting in 116 observations after outlier removal. Data were analyzed using multiple linear regression and Moderated Regression Analysis (MRA). Firm value was measured by PBV, IOS by MBVA, ESG through content analysis based on 117 GRI Standards 2021 items, and company growth using the total asset growth ratio. The results show that IOS and ESG each have a significant positive effect on firm value, while company growth does not moderate the effect of either IOS or ESG on firm value.