This study aims to examine and analyze the influence of green investment, green innovation, and environmental performance on firm value, with profitability serving as a mediating variable. A quantitative research approach was employed, utilizing data from annual reports. The population of the study consisted of mining sub-sector companies within the LQ45 index listed on the Indonesia Stock Exchange, totaling 45 companies. The sample was selected using purposive sampling, resulting in 9 companies observed over a 4-year period. The analysis was conducted using the Structural Equation Modeling (SEM) approach, with the assistance of Partial Least Squares (PLS) and IBM SPSS 26 software. The results of this study indicate that: From the findings of this study, it can be concluded that green investment does not significantly influence profitability or firm value. Similarly, green innovation shows a significant impact on profitability, but not on firm value. Furthermore, environmental performance does not exhibit a significant relationship with either profitability or firm value. In addition, profitability itself does not significantly affect firm value. Indirectly, green investment, green innovation, and environmental performance also do not have a significant effect on firm value through profitability as a mediating variable.
Dearani et al. (Tue,) studied this question.
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