Environmental,Social and Governance (ESG) Disclosure and Firm Value: Panel Data Evidence on the Moderating Role of Firm Age in Jordanian Industrial Companies

Abstract

This research analyzes the influence of environmental, social and governance (ESG) disclosure on firm value (FV), as well as the moderating role of firm age (FAGE). Based on a sample of 29 industrial firms (145 firm-year observations) listed on the Amman Stock Exchange (ASE) from 2019 to 2023, random-effects regression models were employed to assess both the direct effects of ESG disclosure and its individual components—environmental (ENV), social (SOC) and governance (GOV)—as well as their interactions with FAGE. The findings show that overall ESG disclosure has a positive impact on FV, with environmental disclosure having negligible effects and social and governance disclosures having significant effects. FAGE moderates these relationships differently: the interaction of FAGE with the composite ESG score is negative and significant, implying that younger firms benefit more from general ESG disclosure, while the interaction with environmental disclosure is positive and significant, suggesting that older firms gain greater value from environmental initiatives. These results contribute to the body of knowledge on ESG in developing nations and offer managers, investors and policymakers practical guidance, by highlighting how ESG disclosure patterns differ by FAGE and suggesting targeted disclosure practices.