Moderate of Profitability: Corporate Social Responsibility Disclosures and Environmental Performance on Firm Value

Abstract

Firm value is a description of a company's achievements. This research aims to obtain empirical evidence of the influence of CSR disclosure and environmental performance on firm value with profitability as a moderating variable. The population in this study is energy sector companies listed on the IDX in 2017-2022. The sample was determined using a purposive sampling technique with a total research sample of 107 samples. The analysis technique used in this research is Moderated Regression Analysis (MRA). The results of the analysis show that CSR disclosure has a positive effect on firm value, environmental performance has no effect on firm value, profitability strengthens the relationship between CSR disclosure and firm value and profitability is unable to strengthen the relationship between environmental performance and firm value. The theoretical implication of this research is that information is obtained regarding the implications of stakeholder theory on CSR disclosure variables on firm value and the contingency approach on profitability capabilities in moderating the relationship between CSR disclosure and firm value. The practical implications contained in this research are that it can provide information to investors so that investors can consider making decisions before investing and company management can make considerations regarding company policies.

Keywords: CSR, Environmental Performance, Profitability, Firm value

DOI: 10.7176/RJFA/15-6-02

Publication date: June 30th 2024