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The Effect of Capital Structure and ESG on Firm Value with Financial Performance as a Mediating Variable (A Study of Mining Sector Companies Listed on the Indonesia Stock Exchange) Meli Inayatah; Nuraeni
Journal of Multidisciplinary Science: MIKAILALSYS Vol 4 No 3 (2026): Journal of Multidisciplinary Science: MIKAILALSYS
Publisher : Darul Yasin Al Sys

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58578/mikailalsys.v4i3.11996

Abstract

The mining industry faces increasing pressure to create sustainable firm value as investors place greater emphasis on financial performance and corporate sustainability. Capital structure decisions and Environmental, Social, and Governance (ESG) practices are therefore considered strategic factors that may shape corporate performance and valuation. This study examines the effects of capital structure and ESG performance on firm value, with financial performance as a mediating variable, among mining companies listed on the Indonesia Stock Exchange during 2021–2023. A quantitative approach with a causal-associative design was employed, and the sample was selected using purposive sampling. Data were analyzed using regression analysis and mediation testing. The findings indicate that capital structure has a negative and significant effect on financial performance, whereas ESG performance has a positive and significant effect on financial performance. However, capital structure, ESG performance, and financial performance have no significant effects on firm value. Financial performance also does not mediate the effects of capital structure or ESG performance on firm value. These findings demonstrate that improvements in financial performance arising from financing decisions and ESG practices do not necessarily translate into higher firm value during the period examined. The study contributes to the literature by clarifying the limited mediating role of financial performance in the relationship between corporate financial and sustainability factors and firm value in the Indonesian mining sector. Practically, the findings highlight the need for mining companies to integrate prudent financing decisions with consistent, long-term ESG strategies when pursuing sustainable value creation.
Co-Authors -, Hilman -, Kintan Harum Puspita Abdul Muin Bahaf Abdul Rahim Achmad, Ichsan Ashari Adhe Sya’banita Parros Agustina Ahmad Fadil Zuhair Ahmad Rifai ahmad yani Ainun Rofiah Al Gazali Al-Gaisya, Annisa Alwan Suban Amal Nur, Fauziah AMINAH Andhika Pammase Andi Dwi Nuvriyanti Aneng Yuningsih Anik Muilah Annisa Zakiyah Darojat Any Urwatul Wutsqo Asman Asparina, Arina Asrul Hidayat Astrid idham Athoillah Azma Saad Said, Azma Saad Said Baehaqi Barakat Hussein, Hisham Bilal, M. Ahmad Bilhamdilah, Zalfa Nabilah Budi Handrianto Burhan Burhan, Muhammad Rahmatul Cempaka, Eka Chitra Anggriani Darmansyah, Dina Febriani Dede Suleman Dela Desyawati Utami Dewi Setya Ningrum Dian Ayubi Diana Hasan Dieviya Dikananda, Arif Rinaldi Diva, Anggia Zara Ega Kurnia Elsye Yubilia Keysinaya Ervan Britantono Siswantoro Euis Puspitasari Fachrunnisa, Nurul Fahmi Arif Fakhira Anisa Maharani Farida Febriati Fathurrahman Fatimah Nayyiratus Sadiyah Fatmawati Fatmawati Fattah , Muhammad Fevie Rohmatillah Fikri Alamsyah Fitriani Umar Fitriasnani, Meirna Eka Fuza Adelamajid, Ni Made Cantya Gilang Ramadhan Gustiani, Mia Ruhmiati Hadian, Asep Hadiati Putri Kinasih, Dini Hafidz Alauddin Rafi Hafnidar, Siti Hafsah Haniarti, Haniarti HARMILAWATI Hartono Hamzah Hepsi Nindiasari Humaya, Siti I Made Sonny Gunawan Idris Parakkasi Ifa Safira Ihsan Fuad Imas Kania Rahman Inul Ismawi, Ade Sayid Iu Rusliana Jacky Nevo Tambajong Jihan Camila Amru Joko Ariawan Kasmiati Khodijah Kurniati Rahmadani Latuconsina, Mahyuddin Lilik Krismiyanto Luqman Hakim M. Ikra M. Sulhan M. Yusuf Mahabbah, Nurul Mariyani Martanto Masita, Syarifah Meli Inayatah Mey Linda Muh. Ruslan Muh.Iqbal Muhamad Suhardi Muhammad Alfarizi Muhammad Ali Muhammad Danil Muhammad Nur Multasyam Melinda Mulyana, Rijal Assidiq Muthmainnah MS Nadia sabrina Naik Henokh Parmenas Najamudin Najamudin Nasrah Hasmiati Attas Nasri, Rifzaldi Nasrullah Nataline Deo, Stefany Nia Kurniawati Nikmatul Firdaus, Nikmatul Nur Afliah Rahma Nur Hikmah Nurfiah Nurfiah Nurjadin, Rusmin Nurlaeliana Nurlidiawati Nurul Bahari Nurul Istiqomah NURUL ISTIQOMAH Nurul Muhlisa Nurulfalah Diar Nurwahida Perry Irawan Putri Ardela, Mayasari Putri Handayani Putri Salzabila Putri Solihatunnisa rahmadian, Rahmadian Nadiatus Shaniar Puteri Rahmatul Burhan Rahmawanti, Movi Rahmawati Rahmiyati, Dwi Rini Nurheldayani Rizky Amalia Rohmanulloh, Estu RR. Ella Evrita Hestiandari Rufi'i Sabrina, Nadia Salman Farizy Sam Hermansyah Saragih, Enni Septia Renisa Siallagan Shafa Khairunisaa, Selsya Siti Adji Siti Annisa Wahdiniawati, Siti Annisa Siti Asparindah Siti humaya Sitti Aisyah Soraya Faradila, Soraya Sri Islamiyah Putri Abidin SRI RAHMAYANTI Subehan Khalik Sufiyatus Suaibah Suhardiman Suharman, Adi Sulaeman, Suhendar Sulhan, M. Suprapti, Betty Suriani S Suryo Sulistyo Susmihara Syahrullah Asyari, Syahrullah Syamsuddin Syarif Hidayatullah Syarifuddin, Iman Tahir, Rahmah Tanasy, Novaliya Tian Hardiansyah Trisno Wardy Putra Umalihayati Usran Utu Sanjaya Wahab, Isnaeni Wahyuningsih Yunicha Viridula, Erike Zainuddin Basri Zul Astri