Environmental, social, and governance (ESG) disclosure and firm value: the role of competitive advantage as a mediator

Figures & data

Table 1. Criteria for sample selection.

Description	Total
Companies listed on the Indonesia Stock Exchange (IDX) that reported on ESG for the period 2015–2021	79
Excluded: financial companies	(12)
Excluded: incomplete data	(25)
Final selected sample	42
Total number of observations (42 × 6)	252

Source: Bloomberg ESG Indonesia database, 2021.

Table 2. The descriptive statistics of variables.

Variables	N	Minimum	Maximum	Mean	Std deviation
FV	252	0.555	9.701	1.582	1.187
CA	252	−33.529	181.831	0.786	17.953
E	252	0.0000	0.9285	0.4245	0.2955
S	252	0.0000	0.9523	0.5530	0.2141
G	252	0.3703	0.8937	0.7182	0.1189
ESGD	252	0.1481	0.8668	0.5724	0.1815
SIZE	252	27.076	34.038	31.014	1.182
LEVERAGE	252	0.121	0.931	0.491	0.197
SOAC	252	1.000	8.000	3.369	1.292

Source: Bloomberg ESG Indonesia database, 2021.

Table 3. Output first-order formative construct indicator weights.

Indicator	E	S	G	p Value	Type of indicator	WLS	ES
CH	(0.225)	0.000	0.000	<0.001	Formative	1	0.194
E&B	(0.212)	0.000	0.000	<0.001	Formative	1	0.172
Energy	(0.230)	0.000	0.000	<0.001	Formative	1	0.203
M&W	(0.197)	0.000	0.000	<0.001	Formative	1	0.150
Supply Chain	(0.163)	0.000	0.000	0.004	Formative	1	0.102
Water	(0.216)	0.000	0.000	<0.001	Formative	1	0.179
C&C	0.000	(0.242)	0.000	<0.001	Formative	1	0.199
Diversity	0.000	(0.243)	0.000	<0.001	Formative	1	0.201
E&C	0.000	(0.226)	0.000	<0.001	Formative	1	0.172
H&S	0.000	(0.216)	0.000	<0.001	Formative	1	0.158
HC	0.000	(0.251)	0.000	<0.001	Formative	1	0.214
Supply Chain	0.000	(0.129)	0.000	0.018	Formative	1	0.057
AR&O	0.000	0.000	(0.200)	<0.001	Formative	1	0.103
BC	0.000	0.000	(0.193)	<0.001	Formative	1	0.096
Compensation	0.000	0.000	(0.343)	<0.001	Formative	1	0.302
Diversity	0.000	0.000	(0.176)	0.002	Formative	1	0.079
N&G	0.000	0.000	(0.344)	<0.001	Formative	1	0.303
S&G	0.000	0.000	(0.173)	0.002	Formative	1	0.077
Tenure	0.000	0.000	(0.125)	0.021	Formative	1	0.040

Source: WarpPLS 7.0 outputs, 2023.

Table 4. Output second-order formative construct indicator weights.

Indicator	ESG	CA	Q	Size	Lev	Soac	Type of indicator	SE	p Value	VIF	ES
E	0.399	0.000	0.000	0.000	0.000	0.000	Formative	0.059	≤0.001	2.678	1
S	0.398	0.000	0.000	0.000	0.000	0.000	Formative	0.059	≤0.001	2.655	1
G	0.351	0.000	0.000	0.000	0.000	0.000	Formative	0.059	≤0.001	1.544	1
CA	0.000	(1.000)	0.000	0.000	0.000	0.000	Formative	0.053	≤0.001	0.000	1
Q	0.000	0.000	(1.000)	0.000	0.000	0.000	Formative	0.053	≤0.001	0.000	1
Size	0.000	0.000	0.000	(1.000)	0.000	0.000	Formative	0.053	≤0.001	0.000	1
Lev	0.000	0.000	0.000	0.000	(1.000)	0.000	Formative	0.053	≤0.001	0.000	1
Soac	0.000	0.000	0.000	0.000	0.000	(1.000)	Formative	0.053	≤0.001	0.000	1

Source: WarpPLS 7.0 outputs, 2023.

Table 5. The goodness of fit evaluation results of the empirical research model.

Model fit and indices quality	Fit criteria	Analysis results	Description
Average path coefficient (APC)	p ≤ 0.05	0.218 (p < 0.001)	Qualified model fit
Average R-squared (ARS)	p ≤ 0.05	0.293 (p < 0.001)	Qualified model fit
Average adjusted R-squared (AARS)	p ≤ 0.05	0.287 (p < 0.001)	Qualified model fit
Average block VIF (AVIF)	Accepted if ≤ 5, ideal ≤ 3.3	1.178	Ideal
Average full collinearity VIF (AFVIF)	Accepted, if ≤ 5, ideal ≤ 3.3	1.377	Ideal
Tenenhaus GoF (GoF)	Small ≥ 0.1, medium ≥ 0.25, large ≥ 0.36	0.530	Large
Sympson’s paradox ratio (SPR)	Accepted if ≥ 0.7, ideal = 1	0.833	Accepted
R-squared contribution ratio (RSCR)	Accepted if ≥ 0.9, ideal = 1	0.998	Accepted
Statistical suppression ratio (SSR)	Accepted if ≥ 0.7	1.000	Accepted
Nonlinear bivariate causality direction ratio (NLBCDR)	Accepted if ≥ 0.7	0.833	Accepted

Source: WarpPLS 7.0 outputs, 2023.

Table 6. Latent variable coefficients.

	ESGD	FV	CA	SIZE	LEV	SOAC
R-squared		0.545	0.042
Adj.R-squared		0.535	0.038
Composite reliability	0.903	1.000	1.000	1.000	1.000	1.000
Cronbach’s alpha	0.837	1.000	1.000	1.000	1.000	1.000
Average var. extracted	0.756	1.000	1.000	1.000	1.000	1.000
Full collinearity VIFs	1.167	1.899	1.695	1.269	1.192	1.039
Q-squared		0.537	0.040
Min	2.484	−0.865	−1.911	−3.332	−1.879	−1.834
Max	1.505	6.842	10.084	2.559	2.235	3.586
Median	0.259	−0.350	−0.119	0.025	−0.107	−0.286
Mode	0.606	−0.632	−1.911	−3.332	−1.879	−0.286
Skewness	−0.536	3.392	6.097	−0.786	0.148	1.047
Exc. kurtosis	−0.773	15.414	51.326	1.817	−0.826	2.268

Source: WarpPLS 7.0 outputs, 2023.

Figure 1. Research results. Source: WarpPls 7.0 outputs, 2023.

Table 7. Path coefficients.

	ESGD	FV	CA	SIZE	LEV	SOAC
ESGD
FV	0.056		0.566	−1.118	−0.348	−0.014
CA	0.205
SIZE
LEV
SOAC

Source: WarpPLS 7.0 outputs, 2023.

Table 8. p-Values.

	ESGD	FV	CA	SIZE	LEV	SOAC
ESGD
FV	0.186		***<0.001	**0.028	***<0.001	0.415
CA	***<0.001
SIZE
LEV
SOAC

Source: WarpPLS 7.0 outputs, 2023. *significant at alpha 10%, ** significant at alpha 5%, *** significant at alpha 1%.

Table 9. Standar errors for path coefficients.

	ESGD	FV	CA	SIZE	LEV	SOAC
FV	0.062		0.057	0.062	0.059	0.063
CA	0.061

Source: WarpPLS 7.0 outputs, 2023.

Table 10. Indirect effect.

Indirect effects	Coefficient value	p Value	Standard errors	Results
ESGD → CA → Tobin’s Q	0.116	***0.004	0.044	Supported

Source: WarpPLS 7.0 outputs, 2023. *significant at alpha 10%, ** significant at alpha 5%, *** significant at alpha 1%.