Recently, as the business environment has changed rapidly in the global market, companies have been interested in sustainable management. ESG management is now emerging as a keyword for evaluating individual companies and countries. ESG is to make a company sustainable development through eco-friendly, social responsibility, and transparent governance. Therefore, this study aims to investigate the relationship between ESG disclosure and firm value and the moderating role of governance mechanisms in this relationship. The results show that ESG disclosure positively affects firm value. Also, board size, board independence, and audit quality significantly moderate the relationship between ESG disclosure and firm value. However, there is no moderating effect of ownership concentration. Stakeholder and signaling theories are used as a theoretical lens to determine these relationships. This study enables companies to increase stakeholders’ interest in the capital market and induce socially responsible investments through ESG introduction.

Choi, J. H., Hwang, S. J., & Chiu, J. L. (2024). The Moderating Role of Governance Mechanisms on the Relationship Between ESG Disclosure and Firm Value. Review of Integrative Business and Economics Research, 13(3), 59-72.