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Does Integrated Reporting Quality Enhance the Value of ESG Performance? Evidence From Indonesia Listed Firms

  • Yandi Suprapto1*
  • Dina Grestiara Yohana Siringoringo2
  • Isnaini Nuzula Agustin3
1,2,3 International University of Batam image/svg+xml
* Corresponding Author: Yandi Suprapto

Abstract

This study analyzes the impact of Environmental, Social, and Governance (ESG) performance on firm performance and examines the moderating role of Integrated Reporting Quality (IRQ) among companies listed on the Indonesia Stock Exchange (IDX) during 2020–2024. Despite growing pressure for transparent ESG disclosure, ESG implementation in Indonesia still suffers from inconsistent information quality, and research on IRQ's role in strengthening the ESG–firm performance link remains limited. Using a quantitative approach, panel data regression was applied to 242 observations from 49 companies selected via purposive sampling. ESG performance was measured using the Refinitiv Thomson Reuters score, IRQ using a binary scoring system based on the Integrated Reporting Framework, and firm performance was proxied by Return on Equity (ROE) and Tobin's Q, with firm size, leverage, and industry as control variables. Results show ESG performance positively and significantly affects both ROE and Tobin's Q in the baseline model; once IRQ is introduced, the direct ESG effect becomes negative, while the ESG×IRQ interaction remains positive and significant. These findings confirm IRQ as a critical moderator of the ESG–firm performance relationship, suggesting that companies and regulators on the IDX should prioritize integrated reporting quality alongside ESG performance. However, these findings should be interpreted as associations rather than causal effects, given the limited sample of 49 firms with available ESG score and the short five-year observation period.

Keywords

ESG Performance Quality of Integrated Reporting Firm Performance

How to Cite

Citation Format
Suprapto, Y., Siringoringo, D. G. Y., & Agustin, I. N. (2026). Does Integrated Reporting Quality Enhance the Value of ESG Performance? Evidence From Indonesia Listed Firms. International Journal of Management Science and Information Technology, 6(2), 2931-2941. https://doi.org/10.35870/ijmsit.v6i2.8824

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Author Biographies

Yandi Suprapto, International University of Batam

Management Study Program, Faculty of Business and Management, Universitas Internasional Batam, Batam City, Riau Islands Province, Indonesia

Dina Grestiara Yohana Siringoringo, International University of Batam

Management Study Program, Faculty of Business and Management, Universitas Internasional Batam, Batam City, Riau Islands Province, Indonesia

Isnaini Nuzula Agustin, International University of Batam

Management Study Program, Faculty of Business and Management, Universitas Internasional Batam, Batam City, Riau Islands Province, Indonesia

License

Copyright (c) 2026 Yandi Suprapto, Dina Grestiara Yohana Siringoringo, Isnaini Nuzula Agustin

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This work is licensed under a Creative Commons Attribution 4.0 International License.

This is an open-access journal distributed under the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits unrestricted use, distribution, reproduction, and adaptation in any medium (even commercially), provided appropriate credit is given to the original author(s), a link to the license is provided, and any changes made are indicated. Authors retain copyright without restrictions and grant the journal the right of first publication as well as non-exclusive publishing rights for archiving, indexing, and scholarly dissemination.

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