The Effect of Eco-Efficiency, Sustainability Reporting, and Corporate Governance on Firm Value with Firm Size as a Mediating Variable
DOI:
https://doi.org/10.37481/jmeb.v6i3.2148Keywords:
Eco-efficiency, Sustainability Reporting, Corporate Governance, Firm Size, Firm ValueAbstract
This study addresses the inconsistent findings reported in previous studies regarding the influence of sustainability practices and corporate governance on firm value, particularly within environmentally sensitive industries. It aims to examine the effects of eco-efficiency, sustainability reporting, and corporate governance on firm value, while investigating the mediating role of firm size in Indonesian energy companies. The study employs a quantitative research design using secondary data obtained from the annual reports and sustainability reports of energy companies listed on the Indonesia Stock Exchange during 2021–2023. A purposive sampling technique was applied, resulting in 69 firm-year observations. Data were analyzed using multiple regression and path analysis after satisfying the required classical assumption tests. The findings indicate that eco-efficiency and sustainability reporting have no significant direct effect on firm value, whereas corporate governance, represented by the audit committee and independent commissioners, positively influences firm value. Furthermore, firm size mediates the relationship between corporate governance and firm value but does not mediate the effects of eco-efficiency and sustainability reporting. These findings provide additional evidence on the role of corporate governance in enhancing firm value while highlighting the limited contribution of environmental disclosure practices within Indonesia's energy sector.
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