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Journal : Journal La Bisecoman

Does ESG Risk Rating Matter for Firm Value in Indonesia? Testing the Interaction Effect of Firm Size: JEL Classification: G30, G32, G34 Natalia, Evy; Santoso, Hadi; Hartono`, Hartono
Journal La Bisecoman Vol. 6 No. 3 (2025): Journal La Bisecoman
Publisher : Newinera Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37899/journallabisecoman.v6i3.2299

Abstract

This study aims to analyze the impact of ESG Risk Rating, profitability, and growth opportunity on firm value. Given the ongoing debates surrounding ESG research in Indonesia, a more in-depth examination is required. The researcher has developed three econometric models to test six hypotheses related to this issue. This research is distinct from previous studies as it proposes an integrated model incorporating firm size as a moderating variable. The estimation model was tested using moderated regression analysis (MRA), with data comprising 240 observations over the period 2019-2024. The analysis results indicate that ESG Risk Rating in Indonesia does not have a significant impact on firm value. However, profitability and growth opportunity exhibit a significant positive effect on firm value. Further, the interaction model analysis reveals that firm size moderates the relationship between growth opportunity and firm value. These findings suggest that, at present, ESG Risk Rating information in Indonesia is not considered relevant by investors in assessing corporate performance.
Investigation of Islamic Social Reporting, Public Ownership, Size and Firm Value: Testing the Mediation Effect of Financial Performance: JEL Classification: G32, G34, M14, Q56, Z12 Rosmiati, Rosmiati; Hartono, Hartono; Santoso, Hadi
Journal La Bisecoman Vol. 6 No. 3 (2025): Journal La Bisecoman
Publisher : Newinera Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37899/journallabisecoman.v6i3.2300

Abstract

This study aims to analyze the influence of Islamic Social Reporting (ISR), public ownership, and firm size on firm value, with financial performance as a mediating variable, focusing on companies listed in the Jakarta Islamic Index (JII) on the Indonesia Stock Exchange (IDX). ISR serves as a crucial indicator for measuring corporate compliance with Sharia principles, encompassing social and environmental aspects. Research combining ISR with public ownership and firm size mediated by financial performance remains relatively rare in Indonesia. The study observes companies included in the JII, utilizing annual financial report data from 2019 to 2023. Path analysis is used to examine the relationships between variables through 10 research hypotheses. The analysis results indicate that ISR and public ownership (KPP) do not influence firm value (Tobin’s Q, TBQ). Meanwhile, firm size (SIZ) negatively affects financial performance (KJK) and TBQ. In the second model test, KJK appears to positively affect TBQ, while ISR shows a negative effect on TBQ. Furthermore, the Sobel test results reveal that KJK can only mediates the effect of SIZ on TBQ. Mediation effects of KJK on TBQ are not observed for ISR and KPP. These findings confirm that ISR directly affects TBQ. The negative impact of ISR needs further investigation, as it is inconsistent with theoretical concepts.
Co-Authors A.A. Ketut Agung Cahyawan W Abdul Muis Prasetia, Abdul Muis Adiwena, Muh. Afiyati, Afiyati Ahmad Ridwan Aldri Frinaldi Alfariz, Muhammad Alkam Aminatuz Zahroh, Nuril Amirul Mukminin Andhitiyara, Revan Andi Rosman N Andrew Joewono, Andrew Argubi, Adi Hidayat Arie Linory Arif Arif Bambang Jokonowo Cahyo, Yosef Ceffiriana, Paramita Destiyani, Arvina Dewi, Sita Dian Retno Sari Dewi Dian Trihastuti Dumendehe, Tri Dianingsi DWI SANTOSO Dwifi Aprillia Karisma Eva, Lidwina Fadilah, Ahmad Nur Febrianto, Rizky Fitria Hidayati, Fitria Francisca Hermawan Gabriela Raring, Paulina Ganishti, Fairly Sekar Gunadhi, Albert Hamidah, Nur Khusnul Hanif, Sholahuddin Hartono Hartono Hartono`, Hartono Hidayatullah, Syahrul Hilyah Magdalena Hursepuny, Johan Ibrahim, Maulana Idum Satia Santi Ig. Jaka Mulyana Imaman, Rahardian Aulia Imbuh Rochmad iromo, heppi Ivan Gunawan Jaya, Akbar Juhri, Juhri JULIANTO Julius Mulyono Karisma Riskinanti Kartina Kartina Kismanti, S. T. Leonita, Litha Lestari, Mulyati Lestariningsih, Diana Listyowati, Dwi Lukman Hakim Lukman Hakim Manoe, Wahi Silvana Marhadi Budi Waluyo Muhajirin Muhajrah, Muhajrah Muhammad Noor Asnan Munandar, Is Murdianto, Deny Nasir Nasir Natalia, Evy Novrizal, Kevin Nur Rohmah Lufti A'yuni Nurdin, Muh. Firdan Nurdin, Muhammad Firdan Nurhafida, Alisa Pakiding, Sakti Paramita, Gemala Prasetya, Andre Puspitasari, Nurrisma Puspitojati, Endah Putrandy, Leonardo Rahmah, Nia Ridwan, Rasmawati Rosmiati Rosmiati S, M Rizal Samsuri Tarmadja, Samsuri Santi Yatnikasari Sari, Yunita Sartika Septryanti, Ade Setiyo Budiyanto Shinta Tri Kismanti Sianto, Martinus Edy Silalahi, Prayoga Raja Lambok Subekhi, Dimas Sudirman Sudirman Sugeng, Santoso Suryapradana, Ilmawan Umami, Umami Valeria Vivi Silvia Vebrian, Vebrian Waluyo, M. B. Waluyo, Marhadi Budi Wennadi, Luky Yunia Yolanda, Agusius Yuliati -