The Effect of ESG Disclosure, Earnings Per Share, and Debt-to-Equity Ratio on Price-to-Book Value: Evidence from the Indonesian Coal Mining Industry

Abstract

This study examines the effect of Environmental, Social, and Governance (ESG) Disclosure, Earnings Per Share (EPS), and Debt to Equity Ratio (DER) on Price-to-Book Value (PBV), with Return on Assets (ROA) and the USD/IDR exchange rate as control variables, among ten pure coal mining companies listed on the Indonesia Stock Exchange over 2022-2025 (40 firm-year observations). Using panel data regression estimated with a Random Effect Model and robust standard errors, the results show that ESG Disclosure and EPS each have a significant negative effect on PBV, while DER has no significant effect; the three variables jointly influence PBV significantly (Wald test, p = 0.0000), together explaining 18.56% of overall variation in PBV. These findings introduce the concept of conflicting valuation signals, in which ESG disclosure and financial fundamentals may simultaneously convey opposing information to investors under conditions of commodity price volatility and sustainability transition pressure in the coal mining sector.