Determinants of Firm Value with Environmental Performance as a Moderating

Ignatius Bayu Kuncoro; Pardomuan Sihombing

doi:10.58777/rbm.v3i1.374

Authors

Ignatius Bayu Kuncoro Faculty of Economics and Business, Mercu Buana University, Jakarta
Pardomuan Sihombing Faculty of Economics and Business, Mercu Buana University, Jakarta

DOI:

https://doi.org/10.58777/rbm.v3i1.374

Keywords:

Leverage, Liquidity Profitability, Institutional Ownership, Environmental Performance, Firm Value

Abstract

This research examines the influence of Leverage, Liquidity, Profitability, and Institutional Ownership on Firm Value, with Environmental Performance as a moderating variable. The study focuses on coal sub-sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. Using purposive sampling, 14 companies were selected as research samples. Panel data regression analysis was employed. The findings reveal that Leverage and Institutional Ownership do not affect Firm Value. Liquidity negatively affects Firm Value, while Profitability has a positive impact. Environmental Performance does not directly influence Firm Value but moderates certain relationships. Specifically, Environmental Performance strengthens the effect of Liquidity and Profitability on Firm Value but does not moderate the impact of Leverage. The study’s managerial implications highlight the importance of fundamental factors such as profitability, leverage, and dividend policy in enhancing Firm Value. Additionally, companies should recognize Environmental Performance as a moderating factor that can reinforce certain financial influences. Management is encouraged to adopt sustainable business practices to improve both financial performance and environmental responsibility.

References

Afkarina, L., et al. (2019). Analisis Dampak Pertambangan Batu Bara di Kalimantan Timur. Jurnal Energi dan Sumber Daya Mineral, 10(2), 123-135. https://doi.org/10.7454/jessd.v2i2.1025

Bouslah, K., Kryzanowski, L., & M’Zali, B. (2018). "Social performance and firm risk: Impact of the financial crisis." Journal of Business Ethics, 149(3), 643-669. https://doi.org/10.1007/s10551-016-3096-8

Daromes, F. E. (2020). Peran Mediasi Pengungkapan Lingkungan Pada Pengaruh Kinerja Lingkungan Terhadap Nilai Perusahaan. Jurnal Akuntansi, 14(1), 77–101. https://doi.org/10.25170/jak.v14i1.1263

Difoasih, G., & Sihombing, P. (2023). Financial Distress Solutions through Improved Financial Performance and GCG with CSR as the moderating variable for consumer services companies. Jurnal Manajemen, 14(1), 156. https://doi.org/10.32832/jm-uika.v14i1.9391

Djatnika, D. (2022). Dampak karakteristik dewan terhadap profitabilitas bank: bukti empiris di bursa efek indonesia. Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan, Dan Akuntansi, 14(1), 72-83. https://doi.org/10.35313/ekspansi.v14i1.3703

Fairus, M., & Sihombing, P. (2020). The Effect of Good Corporate Governance (GCG) Mechanism on Earnings Management Practices of The Stubben Model (Study Case on Mining Sector Companies Listed on The Indonesia Stock Exchange 2014-2019). European Journal of Business and Management Research, 5(6). https://doi.org/10.24018/ejbmr.2020.5.6.602

Gusfriyanto, H., & Sihombing, P. (2024). The Impact of Financial Ratios and Growth Opportunity on Capital Structure A Moderation Role of Firm Size. International Journal of Digital Marketing Science, 1(1), 34–44. https://doi.org/10.54099/ijdms.v1i1.865

Hilmawan, R., & Amalia, S. (2020). Coal and mineral and its impact on human development index: An empirical study in south and east Kalimantan region, Indonesia. International Journal of Energy Economics and Policy, 10(1), 488–494. https://doi.org/10.32479/ijeep.8711

He, X., Jiang, S., & Yang, J. (2021). "Corporate ESG performance and signaling effects: Evidence from Chinese firms." Journal of Business Ethics, 174(3), 567-588. https://doi.org/10.1007/s10551-020-04620-3

Irmawati, S. and Murtianingsih, M. (2024). Analisis determinan faktor nilai perusahaan. Jurnal Ilmiah Manajemen, Ekonomi, &Amp; Akuntansi (MEA), 8(2), 1553-1573. https://doi.org/10.31955/mea.v8i2.4204

Kusumastuti, A. D., Mutiasari, A. I., & Paningrum, D. (2022). Evaluasi kinerja perusahaan selama pandemi covid-19 melalui pendekatan economic value added (eva) dan market value added (mva) dengan time series approach (studi pada perusahaan lq45 sub sektor property and real estate yang terdaftar di bursa efek indonesia periode tahun 2019 - 2020). Jurnal Pendidikan Akuntansi Indonesia, 20(1), 88-98. https://doi.org/10.21831/jpai.v20i1.51565

Jensen, M. C., Meckling, W. H., Benston, G., Canes, M., Henderson, D., Leffler, K., Long, J., Smith, C., Thompson, R., Watts, R., & Zimmerman, J. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. In Journal of Financial Economics (Issue 4). Harvard University Press. http://hupress.harvard.edu/catalog/JENTHF.html

Lou, J., & Hilde, T. (2023). Evaluating the Viability of Co-Firing Biomass Waste to Mitigate Coal Plant Emissions in Indonesia. https://doi.org/10.21203/rs.3.rs-3481484/v1

Monica, F., Fitri, M. M., Umar, I., Amran, A., & Gusman, M. (n.d.). Distribution of Potential Resources, Reserves and Use of Coal in Indonesia. http://senjop.ppj.unp.ac.id/index.php/senjop

Nofika, S., & Nurhayati, I. (2022). faktor- faktor yang mempengaruhi nilai perusahaan dengan kebijakan dividen sebaga variabel moderasi. Owner, 6(1), 828–845. https://doi.org/10.33395/owner.v6i1.677

Nopianti, R., Komarudin, M. F., & Triana, L. (2023). Pengaruh Leverage dan Likuiditas terhadap Nilai Perusahaan dengan Pemoderasi Umur Perusahaan. Owner, 7(3), 2566–2576. https://doi.org/10.33395/owner.v7i3.1607

Pardiastuti, P., Samrotun, Y. C., & Fajri, R. N. (2020). Faktor-Faktor yang Mempengaruhi Nilai Perusahaan pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi yang Terdaftar di BEI Periode 2016-2018. Owner: Riset Dan Jurnal Akuntansi, 4(2), 337-345. https://doi.org/10.33395/owner.v4i2.210

Pebriawan, N., Damaianti, I., & Devi, W. S. G. R. (2022). Pengaruh profitabilitas dan struktur modal terhadap nilai perusahaan pada perusahaan sektor keuangan yang terdaftar di bursa efek indonesia periode 2016-2020. Ekonam: Jurnal Ekonomi, Akuntansi &Amp; Manajemen, 4(1), 9-17. https://doi.org/10.37577/ekonam.v4i1.485

Pramono, H., & Rohman, A. (2023). The role of environmental performance in strengthening firm values to financial performance (Vol. 21, Issue 2). http://jurnalnasional.ump.ac.id/index.php/kompartemen/

Santosa, P. W. (2020). The moderating role of firm size on financial charactersitics and Islamic firm value at Indonesian equity market. Business: Theory and Practice, 21(1), 391–401. https://doi.org/10.3846/btp.2020.12197

Santosa, P. W., Rahayu, S. I., Simon, Z. Z., & Tambunan, M. E. (2021). The moderating role of audit quality and firm size in the effect of corporate governance on related party transactions: Evidence from Indonesia. Investment Management and Financial Innovations, 18(4), 166–176. https://doi.org/10.21511/imfi.18(4).2021.15

Santosa, P. W., Setianingrum, A., & Yusuf, C. (2022). Corporate governance and leverage on firm value : Evidence of Indonesian large firms. Jurnal Keuangan Dan Perbankan, 26(4), 862–873. https://doi.org/10.26905/jkdp.v26i4.7764

Santoso, B. A., & Junaeni, I. (2022). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan, Likuiditas, dan Pertumbuhan Perusahaan Terhadap Nilai Perusahaan. Owner, 6(2), 1597–1609. https://doi.org/10.33395/owner.v6i2.795

Setiawanta, Y. and Hakim, M. A. (2019). Apakah sinyal kinerja keuangan masih terkonfirmasi?: studi empiris lembaga keuangan di BEI. Jurnal Ekonomi Dan Bisnis, 22(2), 289-312. https://doi.org/10.24914/jeb.v22i2.2048

Sihombing, P., Husni, R. A., & Zakchona, E. (2023). Financial ratios and institutional ownership impact on healthcare firm’s value: A moderation role of leverage. Jurnal Ekonomi Dan Bisnis, 26(Oktober), 431–446. www.ejournal.uksw.edu/jeb

Sihombing, P., Hutajalu, C. B. B., & Suparyati, A. (2023). Financial Performance and Capital Structure on Firm Value with Commodity Prices as a Moderating Variable. Research of Business and Management, 1(2), 57–66. https://doi.org/10.58777/rbm.v1i2.80

Sihombing, P., Pranata, N., & Kwee, Y. (2024). Effect of Dividend, Profitability, and Interest Rates on Firm Value with Leverage as Moderating. Research of Finance and Banking, 2(1), 14–24. https://doi.org/10.58777/rfb.v2i1.218

Solimun (2011). Analisis Variabel Moderasi dan Mediasi. Program Studi Statistika Universitas Brawijaya.

Sri Tjahjono, Mazda Eko. "Pengaruh Kinerja Lingkungan terhadap Nilai Perusahaan dan Kinerja Keuangan." Jurnal Ekonomi Universitas Esa Unggul, vol. 4, no. 1, 2013. https://doi.org/10.47007/jeko.v4i1.1025

STIE YAI, S. L. (2022). Faktor-faktor yang Mempengaruhi Nilai Perusahaan Pada Perusahaan Pertambangan yang Terdaftar Di Bursa Efek Indonesia Pada Tahun 2017-2020. Jurnal Riset Akuntansi Dan Auditing, 9(2), 57–69. https://doi.org/10.55963/jraa.v9i2.468

Suhandi, N. P. M. (2021). The Effect of Institutional Ownership, Capital Structure and Firm Growth on Firm Value: Evidence from Indonesia. International Journal of Digital Entrepreneurship and Business (IDEB), 2(2), 97 – 109.

Susanto, D. A., & Admi, R. (2021). The Determinants of Indonesia’s Coal Exports Demand to Six Asian Countries. Journal of Developing Economies, 6(1), 66–78. https://doi.org/10.20473/jde.v6i1.18916

The Effect of Corporate Governance and Firm Characteristics on Firm Value: Evidence from Jordan. (2023). Jordan Journal of Applied Science-Humanities Series, 36(2). https://doi.org/10.35192/jjoas-h.v36i2.522

Ul Abideen, Z. (2023). Journal of Accounting and Finance in Emerging Economies Firm Performance in China: An Analysis of the Interplay between Financial Leverage, Firm Liquidity, and Firm Size. Journal of Accounting and Finance in Emerging Economies, 9(3). www.publishing.globalcsrc.org/jafee

Widianingrum, H., Dillak, V.J. (2023). Pengaruh Kepemilikan Institusional, Kebijakan Hutang, Pertumbuhan Perusahaan dan Cash Holding Terhadap Nilai Perusahaan pada Perusahaan Makanan dan Minuman Terdaftar di BEI Tahun 2017-2021. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi Dan Bisnis, 11(1). https://doi.org/10.37676/ekombis.v11i1

Yahaya, O. A., & Musa, Z. (2023). Corporate Governance and Firm Value. Article in Budapest International Research and Critics Institute (BIRCI-Journal) Humanities and Social Sciences. https://doi.org/10.33258/birci.v5i3.605x