Firm value in emerging markets: The role of CSR disclosure, firm size, profitability, and foreign ownership

Abstract

Globally, companies are expected to achieve financial excellence while enhancing social legitimacy through credible corporate social responsibility (CSR) disclosures. In Indonesia’s basic materials sector, these expectations are intensified by sustainability pressures, governance challenges, and the influence of foreign investors. This study examines the effects of CSR disclosure, profitability, and firm size on firm value, with foreign ownership as a moderating variable. A quantitative approach was applied to panel data from 2021–2024 for basic materials companies listed on the Indonesia Stock Exchange, analyzed using regression with EViews 13. The results reveal that profitability and firm size positively influence firm value, whereas CSR disclosure and foreign ownership have no direct effect. Foreign ownership strengthens the influence of profitability and firm size but does not moderate the CSR–firm value relationship. These findings contribute to emerging market literature and suggest that enhancing CSR quality and strategically engaging foreign investors can support long-term value creation.