Analysis of Sustainability Performance and it’s Impact on the Firm Value of LQ-45 Low Carbon Leaders Indexed Companies with Profitability as a Moderating Variable
1Indra Jantana, 2Mahatma Kufepaksi, 3Sri Hasnawati
1,2,3The Faculty of Economics and Business, University of Lampung, Indonesia
https://doi.org/10.47191/jefms/v7-i6-42ABSTRACT:
The shift in awareness of the importance of business sustainability requires companies not only to maintain business continuity but also to play a role in sustainable development. A Sustainability Report is a disclosure document provided by a regarding its performance in economic, environmental, and social aspects of its operations. The purpose of this research is to determine whether the GRI topic standards disclosed by companies affect the firm value, moderated by profitability. This study examines the impact of economic disclosure, environmental disclosure, and social disclosure on firm value, with profitability as a moderating variable. The research was conducted on LQ-45 Low Carbon Leaders index companies during the period from 2020 to 2022. The study was conducted by performing a content analysis of sustainability reports and subsequently conducting a regression test using EViews version 12. The results of the study indicate that 1) economic disclosure has a significant impact on firm value, 2) environmental disclosure does not have a significant impact on firm value, 3) social disclosure does not have an impact on firm value, and 4) profitability only moderates the impact of environmental disclosure on firm value.
KEYWORDS:
Sustainability, Content Analysis, Firm Value, Profitability
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