IJRR

International Journal of Research and Review

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Year: 2024 | Month: December | Volume: 11 | Issue: 12 | Pages: 218-233

DOI: https://doi.org/10.52403/ijrr.20241226

Development of the Role of Environmental, Social, and Governance (ESG) and Capital Structure with Firm Value: A Systematic Literature Review

Putri Meilanda1, Luk Luk Fuadah2, Mukhtaruddin Mukhtaruddin3, Hasni Yusrianti4

1,2,3,4Faculty of Economic, Sriwijaya University, Palembang, Indonesia

Corresponding Author: Putri Meilanda

ABSTRACT

Through a systematic literature review (SLR), this study investigates how Environmental, Social, and Governance (ESG) and capital structure factors are affecting the value of non-financial enterprises. It examines 43 papers that were indexed in Scopus Q1 through Q3 and published between 2015 and 2024. The results show that whereas agency theory is frequently used in studies on capital structure and corporate value, stakeholder theory predominates in research on ESG and corporate value. The report also points out discrepancies in the research findings about the connections between business value, capital structure, and ESG. These discrepancies are explained by a number of variables, including changes in the time periods of the studies, the kinds of industry sectors examined, and the national contexts in which the research was carried out.

Keywords: ESG, Capital Structure, Firm Value, Systematic Literature Review

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