The Effect of Capital Expenditures (CAPEX), Tax Planning, and ESG Disclosure on Firm Value

Arimas Yudiantoro; Astrie Krisnawati

doi:10.55927/eajmr.v5i8.278

Authors

Arimas Yudiantoro Telkom University
Astrie Krisnawati Telkom University

DOI:

https://doi.org/10.55927/eajmr.v5i8.278

Keywords:

Capital Expenditures, Tax Planning, ESG Disclosure, Firm Value, Mining Sector, Tobin's Q

Abstract

This study examines whether capital expenditures (Capex), tax planning, and environmental, social, and governance (ESG) disclosure are associated with firm value among mineral and coal mining companies listed on the Indonesia Stock Exchange during 2019–2025. A quantitative panel-data design was applied to 91 firm-year observations from 13 companies selected through purposive sampling. The findings show that Capex, ETR, and ESG disclosure jointly affect firm value (Prob. F = 0.001445). Individually, Capex has a negative and significant coefficient (−1.124264; p = 0.0148), and ETR also has a negative and significant coefficient (−0.764349; p = 0.0101), while ESG disclosure is statistically insignificant (−0.111901; p = 0.5366). The model explains 16.22% of the variation in transformed firm value (R² = 0.162228). These results indicate that investment intensity and effective tax burden are relevant to market valuation, whereas the breadth of ESG disclosure alone is not sufficient to explain short-run differences in firm value.

References

Abu, M. M. (2022). The interplay of corporate tax planning and corporate governance on firm value: Evidence from listed NGX consumer goods firms. Investment Management and Financial Innovations, 19(2), 130–142. https://doi.org/10.21511/imfi.19(2).2022.11

Apriani, M., & Martini, M. (2024). Pengaruh perencanaan pajak, penghindaran pajak, dan profitabilitas terhadap nilai perusahaan. Anggaran: Jurnal Publikasi Ekonomi dan Akuntansi, 2(3), 374–398. https://doi.org/10.61132/anggaran.v2i3.818

Atkinson, A. C., Riani, M., & Corbellini, A. (2021). The Box–Cox Transformation: Review and Extensions. Statistical Science, 36(2), 239–255. https://doi.org/10.1214/20-STS778

Aulya, S., Muslih, M., & Saraswati, R. S. (2022). The influence of capital structure, capital expenditure, and independent commissioner on firm value. Proceedings of the 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, 4050–4059.

Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review, 22, S119–S127. https://doi.org/10.1016/j.bir.2022.11.006

Baltagi, B. (2021). Econometric Analysis of Panel Data. https://doi.org/10.1007/978-3-030-53953-5

Box, G. E. P., & Cox, D. R. (1964). An Analysis of Transformations. Journal of the Royal Statistical Society Series B: Statistical Methodology, 26(2), 211–243. https://doi.org/10.1111/j.2517-6161.1964.tb00553.x

Budiharjo, R., Sagita, A., Hapsari, D. W., Pratomo, D., & Alfaiza, S. A. (2026). Integrating managerial strategy with ESG and sustainable accounting to enhance financial performance amid climate change. Asian Economic and Financial Review, 16(2), 88–108. https://doi.org/10.55493/5002.v16i2.5908

Christy, E., & Sofie. (2023). Pengaruh pengungkapan environmental, social, dan governance terhadap nilai perusahaan. Jurnal Ekonomi Trisakti, 3(2), 3899–3908. https://doi.org/10.25105/jet.v3i2.18233

Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67. https://doi.org/10.1177/0149206310388419

Islamiyah, & Fidiana. (2024). Pengaruh capital expenditure, corporate social responsibility dan profitabilitas terhadap nilai perusahaan. Jurnal Ilmiah Riset Akuntansi.

Kementerian ESDM. (2024, November 26). Kontribusi Minerba pada PDB 2023 Capai Rp2.198 Triliun. Media Center - Kementerian ESDM.

Khaeria, A. N., Majidah, M., & Riyadh, H. A. (2025). Toward Sustainable Development: An Empirical Analysis of ESG Determinants in the Non-Financial Sectors of Indonesia and Malaysia. International Journal of Sustainable Development and Planning, 20(8), 3469–3483. https://doi.org/10.18280/ijsdp.200827

Kristanti, F. T., Fitriyani, H., & Krisnawati, A. (2024). Dynamic panel data analysis of the impact of governance on bank capital structure in Indonesia. Banks and Bank Systems, 19(2), 199–209. https://doi.org/10.21511/bbs.19(2).2024.16

Mahajan, R., Lim, W. M., Sareen, M., Kumar, S., & Panwar, R. (2023). Stakeholder theory. Journal of Business Research, 166. https://doi.org/10.1016/j.jbusres.2023.114104

Mispiyanti, M. (2020). Pengaruh struktur modal, capital expenditure, profitabilitas dan kebijakan dividen terhadap nilai perusahaan pada perusahaan BUMN Indonesia. Jurnal Akuntansi dan Pajak, 20(2). https://doi.org/10.29040/jap.v20i2.636

Silviana, I., & Krisnawati, A. (2020). Pengaruh corporate social responsibility disclosure terhadap nilai perusahaan pada perusahaan sub sektor bank yang terdaftar di indeks SRI 203 KEHATI bursa efek Indonesia periode 2014-2018. Jurnal Mitra Manajemen (JMM Online), 4.

Suriawinata, I. S., Budiyani, E. T., Mais, R. G., & Anhar, M. (2023). Cash conversion cycle, asset turnover, capital expenditure and firm value: The mediating role of profitability. Jurnal Reviu Akuntansi dan Keuangan, 13(3), 674–695. https://doi.org/10.22219/jrak.v13i3.25161

Vu, T. A. T., & Le, V. H. (2021). The effect of tax planning on firm value: A case study in vietnam. Journal of Asian Finance, Economics and Business, 8(2), 973–979. https://doi.org/10.13106/jafeb.2021.vol8.no2.0973

Wu, S., Li, X., Du, X., & Li, Z. (2022). The impact of ESG performance on firm value: The moderating role of ownership structure. Sustainability, 14(21). https://doi.org/10.3390/su142114507