Dedi Haryadi
Fakultas Ekonomi dan Bisnis, Universitas Widya Dharma Pontianak

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The Effect of Profitability and Total Asset Turnover on Firm Value with ESG Disclosure as a Moderating Variable Amelia Christie; Dedi Haryadi
Economics and Digital Business Review Vol. 8 No. 1 (2027)
Publisher : Yayasan Vifada Cendikia Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37531/ecotal.v8i1.4222

Abstract

This study aims to examine the effect of profitability and total asset turnover on firm valueproxied by market capitalization with ESG disclosure as a moderating variable amongmanufacturing companies in the industrials subsector listed on the Indonesia Stock Exchange(IDX) during the 2020–2024 period. A quantitative design was applied in this research, withpanel data regression and Moderated Regression Analysis (MRA) as the analytical techniques,supported by a series of classical assumption tests to assess the suitability of the regressionmodel. The sample comprised 40 manufacturing companies in the industrials subsectorselected through purposive sampling, resulting in 200 firm year observations. The studyutilized secondary data obtained primarily from companies’ annual reports and analyzedusing EViews 13. The findings indicate that profitability has a negative and statisticallysignificant effect on firm value. In contrast, total asset turnover does not have a significant effecton firm value, while ESG disclosure also shows no significant direct effect. Furthermore, ESGdisclosure significantly moderates the relationship between profitability and firm value.However, its moderating effect on the relationship between total asset turnover and firm valueis not statistically significant