The Effect Of Financial Performance On Company Value With Sustainability Reporting As Mediating Variable ( An Empirical Study On Manufacturing Companies Listed On The IDX In 2021-2024)
Keywords:
Financial Performance; Sustainability Reporting; Firm Value; Return on Assets; Mediation AnalysisAbstract
This study aims to analyze the influence of financial performance on company value by reporting sustainability as a mediating variable in manufacturing companies in the Food and Beverage sub-sector listed on the Indonesia Stock Exchange during the period 2021–2024. This study uses a quantitative approach with secondary data obtained from annual reports and company sustainability reports, with a sample of 34 companies selected through the purposive sampling method so that 136 observations were obtained. Financial performance is measured using Return on Assets (ROA), company value is proxied by Price to Book Value (PBV), and sustainability reporting is measured using the Sustainability Reporting Disclosure Index (SRDI). The analysis methods used include simple linear regression, multiple linear regression, and mediated analysis with the help of SPSS software. The results of the study show that financial performance has a positive and significant effect on the company's value, as well as a positive and significant effect on sustainability reporting even with a relatively low contribution. In addition, sustainability reporting has been shown to have a positive and significant effect on company value and is able to mediate the relationship between financial performance and company value. Since the direct influence of financial performance on the company's value remains significant after sustainability reporting is included as a mediating variable, it can be concluded that sustainability reporting acts as a partial mediation. These findings suggest that the increase in a company's value is not only determined by financial performance, but is also reinforced by the quality of the company's sustainability reporting disclosures.
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