The Effect of ESG Disclosure, Manager Qualification and Workplace Safety on Firm Value with Firm Size and Financial Leverage as Control Variables In Manufacturing Companies Listed on the Indonesia Stock Exchange year 2020-2022

. The purpose of this study, which was designed with firm size and financial leverage acting as control variables, was to ascertain the impact of management qualification, workplace safety, and ESG disclosure on firm value as estimated by Tobin's Q. Manufacturers (mining, metal, and cement) that are listed on the IDX in 2020–2022 make up the study's community. This study employed multiple linear regression-ordinary least squares along with hypothesis testing, where the regression coefficient is tested using the t test. The findings show that Manager Qualification (MQ) has a significant positive impact on Firm Value (FV), Financial Leverage (FL) has a substantial negative impact on Firm Value (FV). While ESG disclosure, Workplace Safety (WS) and Firm Size (FS) have no substantial influence on Firm Value (FV). The variable that has the highest significant level (0.008 < 0.005) but the coefficient is negative is Financial Leverage (FL) due to the calculated t value of -2.71, followed by the Manager Qualification (MQ) variable with a significant level (0.023 < 0.05) with a positive coefficient. And followed by the Firm Size (FS) variable, the Workplace Safety (WS) variable, and ESG disclosure does not have a substantial impact because the coefficient value obtained is 0.116; 0.196; and 0.451, respectively, where the coefficient value is higher than 0.05. The outcomes demonstrated that Firm Value (FV) increases along with the increase in Manager Qualification (MQ) and Financial Leverage (FL) has a substantial negative impact on Firm Value (FV). While Firm Size (FS), Workplace Safety (WS), and ESG disclosure variables have no significant effect.


Introduction
Companies are established to get the maximum profit for the owner of the company and also at the same time for the shareholders.The worth of a corporation increases with its profit margin.A high valuation is automatically associated with both strong performance and promising future prospects for the company.Additionally, the firm's high worth may be noticed from its stock price, which is another factor that investors consider before making an investment in a company.Both of these factors indicate the welfare of the company's shareholders.There are several things that investors see before deciding to invest in a company, not all investors want to invest their money in the company.Company value is one of the considerations of investors before deciding to provide funds to the company [1].
Investors rely on the accounting information disclosed by companies to gauge their performance and progress.This data provides insights into the company's trajectory and accomplishments.Through meticulous analysis of financial records, investors can discern the disjunction between a company's intrinsic share value and its market valuation.Armed with this knowledge, investors can confidently navigate decisions to either acquire or divest shares, with the aim of optimizing returns [2].However, it's crucial for investors and creditors alike to exercise prudence, as management's inclination to inflate profits can lead to erroneous assessments if the underlying quality of earnings and financial disclosures is overlooked.
A few elements that may have an impact on a company's value are environmental, social, and governance (ESG).ESG is a new concept that can be applied in various industries.This idea tackles strong business governance, social issues, and the environment.The ESG performance of a company will affect its enhanced value, and vice versa [3].
A company's capacity to carry out its business plan and create long-term value may be impacted by a variety of ESG.As people become more conscious of environmental and social issues.Companies continue to be encouraged Not just to pursue financial gain but also to focus to the impact caused by the company's operational activities, namely social and on the surrounding environment.The government itself as the regulator also regulates the application [4].Sustainable finance for Public Companies which through the Financial Services Authority (OJK) has required issuers to provide sustainable reports to the public in the form of economic, financial, social and environmental performance.
Sustainability reports are applied to issuers based on their sector from 2019 and will be applied as a whole in 2025 [5].When a corporation discloses its performance, it does so by applying the ESG principles.It is hoped that the company will meet the standards of good corporate governance by holding GCG principles in its operations, namely people, planet and profit.By implementing good and correct GCG, it will benefit the organization as a whole, which can result in a good reputation in the perceptions of investors and the general public [6].In addition, increasing the company's reputation can increase consumer assurance and, in the future, also have an impact on business outcomes.Company performance is a metric used by companies to determine the success of their profitability [7].
Company valuation is also closely related to the competencies possessed by the managerial staff involved in producing the company's financial statements.Researchers still pay little attention to how managerial abilities affect a company's value.A manager, in this case the finance manager, must have competencies that support him in doing his job in preparing his company's financial statements accountably and on time.Since their work is evaluated using metrics that can be followed over a short period of time, they frequently give performance-oriented activities more weight than development-oriented ones due to the abilities they possess [8].
In preparing the financial statements of a company, a manager is supported by competencies obtained from education in accordance with his field and with teamwork, the financial statements can be completed on time and can be used by information users (stakeholders) in assessing the performance of a company [9].
Based on previous research, which states that there is a relationship between worker safety which is characterized by workers' compliance with applicable work safety regulations in the company so as to minimize work accidents that can occur in the company [10].So that with a small accident rate, investors can see that the company has good performance, which can increase the company's value [11].
Financial reporting serves the fundamental objective of furnishing pertinent financial data to stakeholders, enabling informed economic judgments [12].The efficacy of these decisions hinges upon the caliber of financial information, which necessitates adherence to key principles such as relevance, comparability, clarity, timeliness, and verifiability.Furthermore, robust financial reporting augments resource allocation determinations within enterprises.It not only signifies the organization's adeptness in managing internal and external capital streams but also underscores its commitment to accountability by fulfilling requisite standards.
Assessing financial reporting quality entails adopting distinct methodologies [13].The initial approach entails scrutinizing the determinants contributing to the precision of financial statements.This involves an introspective analysis of the company's intrinsic attributes.These factors encompass dynamic elements such as operational cycles and sales fluctuations, static parameters like company scale and longevity, and institutional risk indicators such as leverage ratios [12].

Literature Review and Hypothesis Development 2.1 Literature Review 2.1.1 Signally Theory
As per [14], signal theory elucidates the transfer of power from business shareholders to management for conducting operations within the parameters of a mutual contract.When both parties share a vested interest in augmenting company worth, management aligns its actions with the shareholders' interests, thereby fostering harmony in operational endeavors.
As posited in [15], signal theory elucidates how management's outlook on the company's prospective expansion influences potential investors' reactions.These signals manifest as informative cues detailing management's endeavors to actualize shareholders' aspirations.Such disclosures serve as pivotal benchmarks for investors and entrepreneurs alike when formulating investment strategies.

Stakeholders Theory
Stakeholders are individuals, groups of people, communities and societies that have relationships, power, legitimacy and interests in the company either partially or as a whole.
Shareholders, employees, creditors, consumers, suppliers, government, society and analysts are elements of stakeholders.Each element of the stakeholder has power, legitimacy and interests in the company so that each of these elements has a functional relationship with the company in order to meet their respective needs.
According to [16], stakeholder theory comprises two distinct branches: the ethical and the managerial branch.This theory's ethical approach promotes fair treatment of all stakeholders by the organization, regardless of differences in their levels of influence.Conversely, the managerial branch posits that stakeholders' significance correlates with the requisite effort for managing their relationships.Information dissemination serves as a pivotal tool for companies to navigate and influence stakeholder dynamics to garner continued support.Notably, companies prioritize the interests of powerful stakeholders over others, viewing stakeholder power, such as that wielded by creditors or shareholders, as contingent upon their control over company resources.The level of attention accorded to stakeholders corresponds to their control over company resources.A thriving enterprise is one that adeptly balances the diverse demands of its stakeholders.

ESG Disclosure
ESG disclosure is a new measurement method in corporate voluntary information disclosure, which is usually CSR reporting in a stand-alone annual report, sustainability reporting and then continued with integrated reporting [17].
The ESG score serves as a quantifiable gauge of a company's, fund's, or security's performance concerning Environmental, Social, and Governance (ESG) criteria.Increasingly, managers are integrating ESG considerations into their asset allocation strategies, adopting a more comprehensive and thematic approach that resonates with investors' specific objectives.Over the years, the ESG score has evolved into a prominent determinant guiding investment decision.
Despite its emergence a decade ago, it wasn't until 2016 that the Indonesia Stock Exchange (IDX) initiated formal guidelines for ESG reporting and training, nor mandated ESG reporting as a prerequisite for listing.However, the United Nations Sustainability Exchange anticipates universal disclosure of environmental, social, and governance impacts by all listed companies by 2030.

Manager Qualification
Education is an invaluable asset that has essential principle to individuals and society.It gives people a strong platform on which to realize their potential.The level of education is a continuous variable, plus technical knowledge in accounting or financial studies because this is the minimum qualification criteria in accounting that an accounting manager must have [18].
In addition, certification of a degree or diploma of education is required for employees in financial institutions and most organizations use education as an indicator of the level of skill or productivity of a manager.So that with appropriate competencies, it can improve employee performance in preparing company financial reports on time and can be used by stakeholders, one of which is investors

Workplace Safety
Work Health Safety (WHS) encompasses a body of knowledge and practices aimed at preventing workplace injuries.These injuries often stem from various factors including human error, inadequate skills, procedural shortcomings, environmental hazards, improper tool usage, habits, and compliance with regulations [19].Effective implementation of robust WHS measures mitigates the risk of work-related accidents, consequently enhancing the company's performance and garnering favorable assessments from investors.

Firm Value
Based on research [20], firm value represents a comprehensive depiction of a company's performance, significantly influencing investors' evaluations.As defined by [21], firm value encapsulates investors' perceptions of the company, frequently intertwined with its stock price.This underscores the importance investors place on assessing the company's value before making investment decisions.
Firm value is commonly assessed through the stock price, utilizing a metric known as the valuation ratio.This ratio offers insights into the value that the market places on the company, often reflecting a willingness among investors to purchase shares at prices exceeding their book value.In the present study, researchers opted for Tobin's Q ratio for measuring firm value.The rationale behind this selection lies in Tobin's Q ratio's more comprehensive approach, factoring in liabilities alongside other elements in its calculation.This ratio is esteemed for its ability to provide a realtime estimate of each investment's return value in the financial market.

Firm Size
In relation to the company, [22] explains that company size is a substantial factor in forming the framework of finance.In this particular situation, the term "firm size" describes a scale used to determine a company's size based on its stock value, sales value, workforce size, and total asset worth.This study defines business size as the natural logarithm of the total assets of the firm, and the formula can be described as follows: ℎ ( ) =

Financial Leverage
As per [23], financial leverage denotes the utilization of capital sources entailing fixed costs, with the expectation of generating profits surpassing these fixed costs, thereby amplifying shareholder earnings.Contrarily, [24] defines financial leverage as the strategic use of funds bearing fixed costs, aiming to enhance earnings per share through their deployment.
Financial leverage occurs due to the use of funding sources derived from debt, causing the company to bear debt and be burdened by interest costs.The leverage ratio is a measurement that shows how much of the company's assets are financed by.If the company uses more debt, the greater the fixed costs in the form of interest and installments of principal loans that must be paid.

Hypothesis Development
Drawing upon insights from literature review and prior studies, this research aims to investigate the potential positive impact of ESG disclosure, Manager Qualification, and Workplace Safety variables on firm value, while controlling for Firm Size and Financial Leverage.In Figure 1, the suggested relationship model is shown.

Figure 1. Research Framework
According to earlier studies, businesses that proactively communicate information about their ESG policies tend to win over the confidence of the public, investors, and shareholders, which could raise the value of their business.This is consistent with studies carried out by Puspitasari [25] and [26], where the research results for ESG variables have a substantial impact on firm value.
So that good ESG Disclosure will provide a positive signal to the market and can improve the standpoint of shareholders and investors of the company's performance, which in turn can contribute to an increase in firm value.H1 : There is a positive substantial impact of ESG Disclosure level on firm value.
The importance of managers who have high qualifications, relevant experience, and appropriate expertise tends to be able to optimize company performance, reduce risk, and generate added value for the company.Consistent with studies carried out by Rakhmayil [27].The study found that manager qualifications (MQ) significantly affect firm value.
Thus, it may be inferred from earlier study that managers who have good qualifications and competencies tend to be able to carry out their duties and responsibilities more effectively, which in turn can contribute to an increase in firm value.H2 : There is a substantial positive impact of Manager Qualification on firm value.
The importance of non-financial factors, such as workplace safety, in creating long-term value for companies.Good workplace safety can reduce the risk of injury for employees, increase productivity, and reduce costs related to work injuries, all of which may enhance the value of the organization.. Consistent with earlier studies, carried out by Cohn & Wardlaw (Financing Constraints and Workplace Safety) [28].With a good implementation of Work Health Safety (WHS), work accidents will be avoided, so that investors can assess the company's performance favorably.So, it can be assumed that good work safety can provide long-term benefits for the company, such as increasing employee loyalty, reducing operational costs related to work injuries, and building a positive public perception of the company.H3 : There is a substantial positive impact of workplace safety on firm value.
Firm value may be impacted by a company's size.Larger companies may have advantages in managing risk, access to resources, and reputation that can affect firm value.According to studies carried out by Suffah [21], it can be assumed that company size can provide advantages in terms of resources, access to capital markets, and reputation, all of which can contribute to firm value.H4 : There is a positive substantial impact of firm size on firm value.
Previous research on the connection between financial leverage and business value has produced contradicting results.Some studies have shown a complex relationship between these two variables.Such as research conducted by Suffah [21], and in line with research [13] where the research results for the leverage variable have a substantial effect on firm value.H5 : There is a positive substantial impact of financial leverage on firm value

Research Variables
The study employed a quantitative methodology centered around hypothesis testing.Built upon measurable variables derived from hypotheses and theories, the study designates firm value as the dependent variable, while ESG disclosure, Manager Qualification, and Workplace Safety serve as the independent variables.Furthermore, the investigation included control factors including financial leverage and firm size.

Definition and Measurement of Operational Variables
No.
Description Formula Dependent Variable 1. Firm value is measured as a representation of how much the company is related to its market value.If the stock price increases, the company's market value will also increase.Tobin's Q according to [17] explains that company value is a combination of tangible and intangible assets, debt and capital.The calculation of Tobin's Q is done through the division of the company's stock market value and the difference between total assets and total debt.Independent Variable 2. ESG disclosures serve as a pivotal instrument in the evolution of information dissemination concerning the ramifications of ESG initiatives undertaken by the company.The assessment of ESG disclosures finds its benchmark in the GRI Standards.Designed by GRI, these standards represent a pinnacle effort in establishing a framework for disseminating information on ESG impacts to the public through universally recognized guidelines (GRI, 2016).Within the ESG disclosure paradigm, companies can adhere to GRI 300 for environmental aspects, comprising 32 disclosure indicators, GRI 400 for social issues, encompassing 40 disclosure indicators, and GRI 102 for governance matters, comprising 27 disclosure indicators.The methodology for calculating ESG disclosure involves comparing the number of successfully reported indicators against the total count within each GRI module for every ESG facet.This computation employs a dummy variable, assigning a value of 1 for disclosed items and 0 for undisclosed ones.
3. The qualification manager variable is measured using a dummy variable, for accounting managers who have an accounting or business education background, a value of 2 is given, and otherwise a value of 1 is given.
Variabel Dummy 4. To analyze work accidents, it is done by calculating the Injury Frequency Ratio (IFR) [19] Control Variable 5.The overall asset worth of a corporation indicates its dimensions, which are mirrored in its size.
Ln Total Asset 6. Financial Leverage entails the utilization of borrowed funds, commonly referred to as debt, to facilitate the acquisition of assets with the anticipation that the returns or capital appreciation derived from these assets will surpass the borrowing costs.

Method of Collecting Data
This study employs quantitative data, encompassing nominal (dummy) and ratio data types.The primary sources of secondary data are audited financial reports and sustainability reports from manufacturing companies in the mining, metal, and cement subsector that are listed on the IDX and cover the years 2020 to 2022.Financial information and yearly summaries are sourced from the IDX website and Yahoo Finance.
In this study, data collection involves meticulously recording pertinent information delineated in the manufacturing companies' sustainability reports and financial statements.Subsequently, calculations are performed for each variable, followed by an in-depth data analysis.As a result, processed data that has been informatively presented includes documentation, compilation, and tabulation for quantitative analysis.
The study population comprises manufacturing companies operating within the mining, metal, and cement sub-sectors, listed on the IDX between 2020 and 2022.Purposive sampling was employed as the sampling technique.The selection criteria for sampling included: (1) Being listed on the IDX during the specified period, (2) Maintaining continuous listing on the IDX throughout the study duration, and (3) Publishing both financial reports and sustainability reports from 2020 to 2022.

Data Analysis Method
In this study, the technique employed for hypothesis testing and validation is a multiple regression model, facilitated by statistical software and service solutions [17].The study model is encapsulated within the following equation: Q = α + β1ESG disclosure + β2MQ + β3WS + β4FS + β5FL + e Explanation: Q = Firm value measured by Tobin's Q; α = Intercept coefficient; β1-4 = Coefficients for each independent variable; ESG disclosure = Environment Social Governance disclosure measured by GRI Standards; MQ = Manager qualification measured by dummy variable 2 = accounting/business education background and 1 = for others; WS = Workpalce safety measured by Injury Frequency Ratio (IFR); FS = Firm size measured by Ln Total Asset; FL = Firm leverage calculated by dividing total liabilities by total assets; e = error.
Multiple regression analysis procedures contain a series of sequential steps that include descriptive statistics, testing for classical assumptions, normality checks, autocorrelation assessments, multicollinearity evaluations, and heteroscedasticity tests.Hypothesis testing is conducted utilizing the t-test, with 0.05 as the significance level (α = 0.05).

Research Result & Discussions 4.1 Research Result 4.1.1 Description Statistics
This research delves into examining the effect of ESG disclosure, Manager Qualification, and Workplace Safety on firm value within manufacturing firms listed on the IDX between 2020 and 2022.The research targets manufacturing companies operating within the sub-sectors of mining, metal, and cement during the aforementioned period, as documented on www.idx.co.id.A total of 30 companies meeting the specified criteria were selected as samples, yielding 90 observations over the course of three years.
The primary objective of this study's descriptive statistical analysis is to delineate the variables under examination, including ESG disclosure, Manager Qualification, Workplace Safety, Firm Size, Financial Leverage, and Firm Value (Tobin's Q).The research outcomes provide insights into the minimum, maximum, and average values of each variable across sample companies throughout the period from 2020 to 2022, as depicted in Table I.

Firm value
Firm value, denoted by the LnTobin's Q index, serves as a crucial metric.Throughout the period spanning from 2020 to 2022, the LnTobin's Q index showcased notable fluctuations.For instance, PT Vale Indonesia, Tbk attained the highest value, reaching 2.768087 in 2022, while Citra Turbindo Tbk recorded the lowest value of 0.4358849 in 2020.A LnTobin's Q value surpassing 1 signifies an uptick in the company's growth, as reflected by its stock market valuation.

ESG disclosure
ESG disclosure is measured using the GRI standard.The calculation of ESG disclosure uses a dummy variable by providing a value of 1 if the disclosure item is disclosed and providing a value of 0 if the disclosure item is not disclosed.And then the disclosure is summed up and divided by the total ESG score as a whole.From the research results, the maximum ESG disclosure is obtained at a value of 0.9295775 and the lowest value is 0.841471.

Manager Qualification
The manager qualification variable is measured using a dummy variable.The maximum value is 2 and the lowest value is 1.

Workplace Safety
To analyze work accidents, the injury frequency rate was calculated.The maximum value is 0.97 and the lowest value is 0. And has an average value of 0.542089.

Firm size
For firm size, the highest value is 20.44393 for PT Elnusa Tbk in 2020 and the lowest is 11.79358 for Lionmesh Prima Tbk in 2022, with an average value obtained by the company of 15.80347.

Financial Leverage
Financial leverage is proxied by total liabilities divided by total assets owned by the company.The maximum result is 0.9061304 for the Waskita Beton Precast Tbk company in 2022 and the lowest value is 0.1141169 for the PT Vale Indonesia Tbk company.With the average value of financial leveage for all companies in this study is 0.4711382.that the variable of leverage significantly influences firm value, thereby supporting the acceptance of the hypothesis.

Conclusion
Drawing from the data analysis and discussions presented in the preceding chapter, the study's conclusion asserts that the proficiency of financial managers within their respective domains, represented by the Manager Qualification (MQ) variable, yields a substantial and positive impact on Firm Value (FV).The Financial Leverage (FL) variable has a negative impact on Firm Value (FV).The implementation of ESG Disclosure in Indonesia in several manufacturing companies in the mining, metal and cement sub-sectors has not had a substantial influence on Firm Value (FV).Likewise, the Workplace Safety (WS) and Firm Size (FS) variables do not have a substantial influence on Firm Value (FV).
The implications of this research are expected to complement scientific literature studies, especially in the field of accounting and more specifically on the importance of balanced ESG disclosure between environment, social and governance in each company.
The limitation of this research is that this research was only conducted in manufacturing companies in the mining, metal and cement sub-sectors, so it does not represent the overall research results, so it is hoped that further research can be carried out on other sub-sector companies, so that the research results obtained can be a comparison of previous research results.