Islahuddin Islahuddin, Yossi Diantimala
This study examines the impact of corporate social responsibility (CSR) disclosures on firm value. Furthermore, we investigate whether the corporate governance structure—represented by independent commissioners supported by CSR committees—and creditor pressure matter in strengthening the positive relationship between CSR disclosure and firm value. This study highlights highly polluting companies due to their substantial global contributions to pollution. The sample comprises 360 highly polluting companies over four years. Data were collected from the financial statements and annual CSR disclosures of companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023. Using Estimated Generalized Least Squares (EGLS) and moderated regression analysis of balanced panel data, we found that CSR disclosure significantly and positively affects the firm value of highly polluting companies in Indonesia. Independent commissioners supported by CSR committees strengthen the positive relationship between CSR disclosure and firm value. Creditor pressure also strengthens the positive relationship between CSR disclosure and firm value across both periods. These results suggest that a strong corporate governance structure and high pressure from parties with direct financial interests, such as creditors, strengthen the positive impact of CSR disclosure on firm value. These insights may guide companies in crafting more effective CSR disclosure and governance strategies while offering investors and stakeholders valuable benchmarks for evaluating corporate performance. © 2026 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license. http://creativecommons.org/licenses/by/4.0/
Department of Accounting, Universitas Syiah Kuala, Banda Aceh, Indonesia
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