The Role of ESG Disclosure in Moderating the Effect of Profitability on Firm Value in the Energy Sector on the Indonesia Stock Exchange
Keywords:
Profitability; ESG Disclosure; Firm Value; Energy SectorAbstract
This research aims to investigate the influence of profitability on firm value while also assessing the moderating role of Environmental, Social, and Governance (ESG) disclosure in the association between profitability and firm value in energy sector companies listed on the Indonesia Stock Exchange throughout the 2021–2024 period. A quantitative research design was adopted by utilizing secondary data collected from financial statements, annual reports, and sustainability reports. The study involved 35 companies, resulting in 140 observational data points selected through a purposive sampling technique. Data analysis was carried out using panel data regression combined with Moderated Regression Analysis (MRA). The findings indicate that profitability exerts a positive and statistically significant influence on firm value. Conversely, ESG disclosure neither demonstrates a significant direct impact on firm value nor strengthens or weakens the relationship between profitability and firm value. This research enriches the existing body of knowledge by exploring the moderating function of ESG disclosure within the profitability–firm value relationship in Indonesian energy companies, a topic that has received relatively little empirical attention. Furthermore, the results offer practical insights for companies to improve the transparency and consistency of ESG reporting and may serve as a valuable reference in formulating sustainability strategies aimed at increasing firm value.
References
Abdi, Y., Li, X., & Càmara-Turull, X. (2022). Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age. Environment, Development and Sustainability, 24(4), 5052–5079. https://doi.org/10.1007/s10668-021-01649-w
Adekunle, A. O. (2025). The Moderating Role of ROA in the PER-Firm Value Nexus: Evidence from Pakistan’s Banking Sector. Reviews of Management Sciences, 7(1), 59–73. https://doi.org/10.53909/rms.07.01.0269
Afriyani, Lulu Ayu; Nurlaela, S. S. (2026). Determinants of Firm Value in LQ45 Companies Listed on the Indonesia Stock Exchange. Owner: Riset Dan Jurnal Akuntansi, 10(2), 2548–7507. https://doi.org/10.33395/owner.v10i2.3051
Alghifari, E. S., Gunardi, A., Suteja, J., Nisa, I. K., & Amarananda, Z. (2022). Investment Decisions of Energy Sector Companies on the Indonesia Stock Exchange: Theory and Evidence. International Journal of Energy Economics and Policy, 12(6), 73–79. https://doi.org/10.32479/ijeep.13642
Asni, N., & Agustia, D. (2022). The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries. European Journal of Innovation Management, 25(5), 1328–1347. https://doi.org/10.1108/EJIM-11-2020-0459
Astuti, D. P., Mahmudi, B., & Mulyani, A. S. (2024). The Mediating Role of Capital Structure in the Impact of Profitability and Liquidity on Firm Value. Indonesian Journal of Innovation Multidisipliner Research, 2(3), 426–441. https://doi.org/10.69693/ijim.v2i3.194
Asyifa, Ade Julia; Cahyaningtyas, N. W., & Utami, Y. (2025). Pengaruh ESG Disclosure, Retention Ratio, dan Likuiditas pada Nilai Perusahaan: Peran Moderasi Ukuran Perusahaan di Sektor Infrastruktur (2021-2023). Iltizam Journal of Shariah Economic Research, 9(1), 118–134. https://doi.org/10.30631/0ad98e98
Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review, 22(S2), S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
Barman, S., & Mahakud, J. (2025). Energy uncertainty and firm Performance: Does ESG matter? Journal of Economic Asymmetries, 31, e00413. https://doi.org/10.1016/j.jeca.2025.e00413
Broadstock, D. C., Chan, K., Cheng, L. T. W., & Wang, X. (2021). The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China. Finance Research Letters, 38, 101716. https://doi.org/10.1016/j.frl.2020.101716
Cesarone, F., Martino, M. L., & Carleo, A. (2022). Does ESG impact really enhances portfolio profitability? Sustainability, 14(4), 2050. https://doi.org/10.3390/su14042050
Chang, Y. J., & Lee, B. H. (2022). The Impact of ESG Activities on Firm Value: Multi-Level Analysis of Industrial Characteristics. Sustainability, 14(21), 14444. https://doi.org/10.3390/su142114444
D’Amato, V., D’Ecclesia, R., & Levantesi, S. (2024). Firms’ profitability and ESG score: A machine learning approach. Applied Stochastic Models in Business and Industry, 40(2), 243–261. https://doi.org/10.1002/asmb.2758
Desiana, D., Luthfia Nanda, U., & Hermansyah, I. (2025). Determinan Pengungkapan Emisi Karbon: Sebuah Studi di Sektor Energi. Owner : Riset Dan Jurnal Akuntansi, 9(2), 1135–1144. https://doi.org/10.33395/owner.v9i2.2493
Dorothy, P., & Endri, E. (2024). Environmental, social and governance disclosure and firm value in the energy sector: The moderating role of profitability. Problems and Perspectives in Management, 22(4), 588–599. https://doi.org/10.21511/ppm.22(4).2024.44
Fatima, N., Shaik, A. R., & Tripathy, S. (2023). Firm Value and Profitability of Saudi Arabian Companies Listed on Tadawul: Moderating Role of Capital Structure. International Journal of Sustainable Development and Planning, 18(5), 1515–1521. https://doi.org/10.18280/ijsdp.180522
Febriyanto, Eka Cahya; Indawati, Rachmah; Mahmudah; Ama, Fuad ; Ashari, F. Y. (2023). Modeling of Maternal Mortality (MMR) in East Java 2017-2019 Using Panel Regression Approach. Jurnal Biometrika Dan Kependudukan, 12(2), 177–185. https://doi.org/10.20473/jbk.v12i2.2023.177-185
Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. Cambridge University Press.
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25 (9th ed.). Badan Penerbit Universitas Diponegoro.
Hamdouni, A. (2025). Value Creation Through Environmental, Social, and Governance (ESG) Disclosures. Journal of Risk and Financial Management, 18(8), 415. https://doi.org/10.3390/jrfm18080415
Hidayati, N. I. M. (2026). Kualitas Tata Kelola Perusahaan dalam Memoderasi Pengaruh Laporan Keberlanjutan terhadap Nilai Perusahaan (Studi Empiris pada Perusahaan dalam Indeks LQ45). Jurnal Akuntansi Kompetif, 9(1), 124–133. https://doi.org/10.35446/akuntansikompetif.v9i1.2573
Jeanice;, & Kim, S. S. (2023). Pengaruh Penerapan ESG terhadap Nilai Perusahaan di Indonesia. Owner : Riset Dan Jurnal Akuntansi, 7(2), 1646–1653. https://doi.org/10.33395/owner.v7i2.1338
KPMG. (2025). Energy transition investment outlook: 2025 and beyond. https://kpmg.com/xx/en/our-insights/esg/energy-transition-investment-outlook-2025-and-beyond.html
Maulana, A., Afifi, Z., & Delima, Z. M. (2026). Pengaruh Green Accounting , Carbon Emissions Disclosure , Profitabilitas , dan Environmental Social Governance ( ESG ) Disclosure terhadap Nilai Perusahaan. Jurnal Bisnis Manajemen Dan Akuntansi, 6(2), 1–17. https://doi.org/10.47701/bismak.v6i02.5930
Maysari, M., & Endri, E. (2025). ESG Disclosure, Intellectual Capital, and Firm Value in the Energy Sector in Indonesia: The Moderating Role of Firm Size. International Journal of Energy Economics and Policy, 15(6), 512–522. https://doi.org/10.32479/ijeep.21243
Mohammed Abubakr, A. A., Mahade, A., Musa, A. M. H., Hussin, Z. A. M., Ahmad, Z., & Abdalla, A. A. A. (2026a). Impact of ESG Performance on Profitability and Firm Value: Experience of Companies Listed on the Stock Exchange of Thailand. SAGE Open, 16(1), 1–15. https://doi.org/10.1177/21582440261416260
Naseer, M. M., Khan, M. A., Bagh, T., Guo, Y., & Zhu, X. (2024). Firm climate change risk and financial flexibility: Drivers of ESG performance and firm value. Borsa Istanbul Review, 24(1), 106–117. https://doi.org/10.1016/j.bir.2023.11.003
Ochoa-Marquez, P., & Gehrke, C. J. (2026). Financial Payoff of Sustainability in Mexican Companies: ESG Performance, Profitability and Firm Value. Sustainability, 18(2), 682. https://doi.org/10.3390/su18020682
Oktaviana, S., Sembel, R., & Manurung, A. H. (2025). Pengaruh Environment, Social, General Disclosure, dan Indikator Keuangan terhadap Nilai Perusahaan Perkebunan di Indonesia. Owner : Riset Dan Jurnal Akuntansi, 9(1), 464–478. https://doi.org/10.33395/owner.v9i1.2602
Otoritas Jasa Keuangan. (2017). Peraturan Otoritas Jasa Keuangan Nomor 51/POJK.03/2017 tentang Penerapan Keuangan Berkelanjutan bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik. https://ojk.go.id/id/regulasi/Pages/Penerapan-Keuangan-Berkelanjutan-bagi-Lembaga-Jasa-Keuangan,-Emiten,-dan-Perusahaan-Publik.aspx
Pangestuti, D. C., Muktiyanto, A., Geraldina, I., & Darmawan. (2022). Role of Profitability, Business Risk, and Intellectual Capital in Increasing Firm Value. Journal of Indonesian Economy and Business, 37(3), 311–338. https://doi.org/10.22146/jieb.v37i3.3564
Prahbawati, N. K. W. T., & Isnalita. (2025). ESG performance and dividend policy: The moderating role of family ownership in Indonesia. Jurnal Akuntansi Dan Auditing Indonesia, 29(2), 2025. https://doi.org/10.20885/jaai.vol29.i ss2.art3
Putri;, Gita, D., & Haryono. (2025). Pengaruh Peringkat Risiko ESG dan Kinerja Keberlanjutan terhadap Nilai Perusahaan. Jurnal Akuntansi, Ekonomi Dan Manajemen Bisnis, 5(2), 421–435. https://doi.org/10.55606/jaemb.v5i2.6381
Quintiliani, A. (2022). ESG and Firm Value. Accounting and Finance Research, 11(4), 37–47. https://doi.org/10.5430/afr.v11n4p37
Rashwan, M., Farouk, N., & Pasha, R. (2025). Can ESG Strategies Drive Firm Value Growth in the MENA Region? Sustainability, 17(17), 7894. https://doi.org/10.3390/su17177894
Resmi, R. Y., Andriani, R., & Widiarti, D. (2025). Determinasi Nilai Perusahaan Melalui Penerapan Green Accounting Dan Pengungkapan Informasi Environmental, Social, and Governance (Esg). J-Aksi : Jurnal Akuntansi Dan Sistem Informasi, 6(3), 338–347. https://doi.org/10.31949/j-aksi.v6i3.16268
Riwanda, Ardhea Kirana Putri; Maryani, N. (2026). THE INFLUENCE OF PROFITABILITY ON FIRM VALUE WITH ESG DISCLOSURE AS A MODERATING VARIABLE. Indonesian Interdisciplinary Journal of Sharia Economics, 9(1), 1681–1694. https://doi.org/10.31538/iijse.v9i1.9012
Rohendi, H., Ghozali, I., & Ratmono, D. (2024b). Environmental, social, and governance (ESG) disclosure and firm value: the role of competitive advantage as a mediator. Cogent Business & Management, 11(1), 2297446. https://doi.org/10.1080/23311975.2023.2297446
Salam, A., & Dewi, N. G. (2026). Peran Esg, Leverage, dan Ukuran Perusahaan terhadap Kinerja Perusahaan Pertambangan di Indonesia. Jurnal Mahasiswa Manajemen Dan Akuntansi, 5(1), 720–732. https://doi.org/10.30640/jumma45.v5i1.6009
Saminem, S., Sulaiman, S., & Mohamad, M. (2024). The role of stock price in the linkage within integrated reporting and firm value: A comparative study in Indonesia. Journal of International Studies, 17(4), 219–237. https://doi.org/10.14254/2071-8330.2024/17-4/13
Santoso, B. A., & Junaeni, I. (2022). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan, Likuiditas, dan Pertumbuhan Perusahaan terhadap Nilai Perusahaan. Owner : Riset Dan Jurnal Akuntansi, 6(2), 1597–1609. https://doi.org/10.33395/owner.v6i2.795
Santoso, I. P. (2025). The effect of ESG disclosure and financial performance on firm value. JHSS (Journal of Humanities and Social Studies), 9(2), 790–795. https://doi.org/10.33751/jhss.v9i2.11044
Sari, D. P., Fikri, M., Kartika, R., & Tanwattana, N. (2025). Corporate Governance, ESG Disclosure, and Firm Value: Evidence from Public Companies in Indonesia. Journal of Economics and Management, 3(2), 50–59. https://doi.org/10.70716/ecoma.v3i2.235
Seok, J., Kim, Y., & Oh, Y. K. (2024). How ESG shapes firm value: The mediating role of customer satisfaction. Technological Forecasting and Social Change, 208, 123714. https://doi.org/10.1016/j.techfore.2024.123714
Sirin, S. M., & Yilmaz, B. N. (2024). Energy transition and non-energy firms’ financial performance: Do markets value capability-based energy transition strategies? Energy Economics, 136, 107658. https://doi.org/10.1016/j.eneco.2024.107658
Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010
Suharto, A. B., Subiyantoro, E., Cahyaningsih, D. S., Zuhroh, D., & Sitinjak, N. D. (2024). Pengaruh Pengungkapan Esg Dan Net Foreign Flow terhadap Nilai Perusahaan Sektor Manufaktur. Jurnal Aplikasi Akuntansi, 8(2), 495–506. https://doi.org/10.29303/jaa.v8i2.389
Tahmid, T., Hoque, M. N., Said, J., Saona, P., & Azad, M. A. K. (2022). Does ESG initiatives yield greater firm value and performance? New evidence from European firms. Cogent Business & Management, 9(1), 2144098. https://doi.org/10.1080/23311975.2022.2144098
Tirta Wangi, G., & Aziz, A. (2024). Analisis Pengaruh ESG Disclosure, Likuiditas, Dan Profitabilitas terhadap Nilai Perusahaan Pada Perusahaan Yang Terdaftar Di Indeks ESG Leaders. Ikraith-Ekonomika, 7(2), 221–230. https://doi.org/10.37817/ikraith-ekonomika.v7i2.3351
Tyas, C. D. N., & Prastiwi, A. (2025). Pengaruh Profitabilitas terhadap nilai Perusahaan Dengan ESG Performance Sebagai Variabel Moderasi. Owner : Riset Dan Jurnal Akuntansi, 9(2), 946–954. https://doi.org/10.33395/owner.v9i2.2624
Wu, S., Li, X., Du, X., & Li, Z. (2022). The Impact of ESG Performance on Firm Value: The Moderating Role of Ownership Structure. Sustainability, 14(21), 14507. https://doi.org/10.3390/su142114507
Wulandari, P., & Istiqomah, D. F. (2024). The Effect of Environmental, Social, Governance (Esg) and Capital Structure on Firm Value: the Role of Firm Size As a Moderating Variable. Jurnal Riset Akuntansi Politala, 7(2), 307–324. https://doi.org/10.34128/jra.v7i2.402
Yu, X., & Xiao, K. (2022). Does ESG Performance Affect Firm Value? Evidence from a New ESG-Scoring Approach for Chinese Enterprises. Sustainability, 14(24), 16940. https://doi.org/10.3390/su142416940
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2026 Yesila, Rahma Maulidia, Syarif M. Helmi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. In line with the license, authors are allowed to share and adapt the material. In addition, the material must be given appropriate credit, provided with a link to the license, and indicated if changes were made. If authors remix, transform or build upon the material, authors must distribute their contributions under the same license as the original.
