Firm value reflects investors' perception of a company's overall worth, which can be influenced by both financial and non-financial factors. This study aims to analyze the effect of Sustainability Report Disclosure, Firm Size, and Leverage on Firm Value with Profitability as an intervening variable. The population of this study are companies included in the IDX ESG Leaders index for the period 2020-2023, with a total sample of 14 companies. Sustainability Report Disclosure is proxied by SRDI, Firm Size by Ln (Total Assets), Leverage by DER, Profitability by ROA, and Firm Value is proxied by PBV. The results found that Firm Size and Leverage have a positive effect on Firm Value, while Sustainability Report Disclosure has no effect on Firm Value. In addition, Sustainability Report Disclosure, Firm Size, and Leverage have a significant positive effect on Profitability. Regarding the mediating variables, the results found that Profitability is able to mediate the effect of Firm Size and Leverage on Firm Value, while Profitability is not able to mediate the effect of Sustainability Report Disclosure on Firm Value.
Mauren et al. (Thu,) studied this question.