The Effect of Score and Profitability on Company Value: An Empirical Study on Companies Listed In The Kompas100 Index in 2020-2022
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Abstract
This study aims to examine the influence of ESG (Environment, Social, and Governance) Score and profitability on company value in companies listed in the Kompas100 index during the 2020-2022 period. The variables used in this study are the disclosure of ESG and profitability (ROA) as independent variables. The research population includes all companies listed in the Kompas100 index in 2020-2022. The sampling technique used the purposive sampling method and produced 156 samples. The data analysis method used was panel data regression analysis with the selection of the best model with the E-Views 13.0 Enterprise application. The results of this study show that ESG Score disclosure has a significant positive influence on company value. Profitability has a negative influence on the value of the company. In addition, the control variables of firm size and firm growth have a positive influence on the company's value, while firm age has a negative influence on the company's value.
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How to Cite
Ananda, T. Y., & Wendy. (2025). The Effect of Score and Profitability on Company Value: An Empirical Study on Companies Listed In The Kompas100 Index in 2020-2022 . ProBisnis : Jurnal Manajemen, 16(06), 1928–1936. Retrieved from https://ejournal.joninstitute.org/index.php/ProBisnis/article/view/1317
References
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Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review, 22, S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
Bhaskaran, R. K., Sujit, K. S., & Mongia, S. (2023). Linkage between performance and sustainability initiatives in banking sector–An empirical examination. International Journal of Productivity and Performance Management, 72(1), 200–225.
Buallay, A. (2019). Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), 98–115.
Darsono, S. N. A. C., & Ma'la, A. (2024). Impact of ESG Practices on Sustainable Companies Performance in Indonesia. BALANCE: Economic, Business, Management and Accounting Journal, 21(1), 65–75. https://doi.org/10.30651/blc.v21i1.20333
Dolontelide, C. M., & Wangkar, A. (2019). The Effect of Sales Growth and Firm Size on the Company's Value in Food and Beverage Companies Listed on the Indonesia Stock Exchange. EMBA Journal: Journal of Economics, Management, Business and Accounting Research, 7(3).
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
Fuadi, A., Yulianti, V., Noor, A. F., & Putri, T. A. (2022). The Influence of Business Risk, Sales Growth and Company Age on Company Value. ASSET: Journal of Management and Business, 5(2).
Junius, D., Adisurjo, A., Rijanto, Y. A., & Adelina, Y. E. (2020). The Impact of ESG Performance on Firm Performance. Journal of Accounting Applications, 5(1), 21–41.
Finance, O. J. (2017). OJK Regulation Number 51/POJK. 03/2017 on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies. Statute Book of the Republic of Indonesia Year, 169.
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Krisnando, K., & Novitasari, R. (2021). The effect of capital structure, company growth, and firm size on the value of companies in consumer goods companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2020 period. Journal of Accounting and Management, 18(2), 71–81.
Makhdalena, M., Zulvina, D., Zulvina, Y., Amelia, R. W., & Wicaksono, A. P. (2023). ESG and Firm Performance in Developing Countries: Evidence From ASEAN. Ethnocentrics, 22(1), 65–78. https://doi.org/10.15408/etk.v22i1.25271
Maurien, I. (2019). The Influence of Profitability, Firm Size, Firm Growth, Liquidity, Sales Growth on Company Value. Journal of Accounting Paradigm, 1(4), 1013–1021.
Muzayin, M. H. T., & Trisnawati, R. (2022). The Influence of Capital Structure, Company Size, Company Age and Profitability on Company Value (Empirical Study on Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX) in 2017-2019). Journal of Accounting, 3(1), 271–284.
Narotama, B., Achsani, N. A., & Santoso, M. H. (2023). Corporate Environmental, Social, and Governance (ESG) and SMEs’ Value (a Lesson From Indonesian Public SMEs). Indonesian Journal of Business and Entrepreneurship, 9(2), 197–207. https://doi.org/10.17358/ijbe.9.2.197
Negara, N. G. P., Ishak, G., & Priambodo, R. E. A. (2024). Impact of ESG Disclosure Score on Firm Value: Empirical Evidence From ESG Listed Company in Indonesia Stock Exchange. European Journal of Business and Management Research, 9(2), 114–118. https://doi.org/10.24018/ejbmr.2024.9.2.2064
Nirmalasari, Haryanto, D., & Safitri, H. (2020). Analysis of the Influence of Intellectual Capital and Profitability on Company Value on the Kompas100 Index on the Indonesia Stock Exchange. Journal of Productivity, 7, 47–54.
Nurannisa, S. R. (2024). ESG VS Corporate Performance, Corporate Empirical Test LQ45. Al-Kharaj: Journal of Sharia Economics, Finance & Business, 6(6), 5021–5033.
Olsen, B. C., Awuah-Offei, K., & Bumblauskas, D. (2021). Setting materiality thresholds for ESG disclosures: A case study of US mine safety disclosures. Resources Policy, 70, 101914.
Pertiwi, S. N., Muslim, A., & Widiastuti, M. C. (2024). Analysis of the influence of ESG and corporate governance performance on financial performance with digital transformation as a moderation variable in LQ45 companies. Scientific Journal of Management, Economics, & Accounting (MEA), 8(2), 1777–1796.
Putri, I. H., Meutia, I., & Yuniarti, E. (2022). Factors that affect the disclosure of materiality in sustainability reports. Journal of Accounting, 32(7), 1771–1784.
Rahayu, I., Isnanda, M., & Sanjaya, N. (2024). ESG Performance and Firm Value: An Empirical Study in Indonesia. Review of Integrative Business and Economics Research, 13(4), 513.
Rousilita Suhendah, G. A. (2020). The effect of company size, profitability, dividends and company age on company value. Journal of Accounting Paradigm, 2(2), 586. https://doi.org/10.24912/jpa.v2i2.7623
Sari, M. L., & Susanti, A. (2021). Factors that affect the Value of Manufacturing Companies on the IDX. Business Media, 13(3), 271–284.
Velte, P. (2019). The bidirectional relationship between ESG performance and earnings management–empirical evidence from Germany. Journal of Global Responsibility, 10(4), 322–338.
Wicaksono, A. P. (2023). Environmental, social, governance and firm performance in developing countries: Evidence from southeast Asian. Ethnocentrics, 22(1), 65–78.
Wirajaya, A., & Dewi, A. S. M. (2013). The influence of capital structure, profitability and company size on the company's value. E-Journal of Accounting, Udayana University, 4(2), 358–372.
Xu, Y., & Zhu, N. (2024). The Effect of Environmental, Social, and Governance (ESG) Performance on Corporate Financial Performance in China: Based on the Perspective of Innovation and Financial Constraints. Sustainability (Switzerland) , 16(8). https://doi.org/10.3390/su16083329
Zainuddin, Z., Shari, W., Bahaman, M. A., Yusof, R. M., & Abdul Karim, N. (n.d.). The Impact of Environmental, Social and Governance (ESG) Practices on the Financial Performance of Green Companies in Malaysia: An Empirical Analysis. The Indonesian Capital Market Review, 16(1), 5.
Ammer, M. A., Aliedan, M. M., & Alyahya, M. A. (2020). Do corporate environmental sustainability practices influence firm value? The role of independent directors: Evidence from Saudi Arabia. Sustainability (Switzerland), 12(22), 1–21. https://doi.org/10.3390/su12229768
Angir, P., & Weli, W. (2024). The Influence of Environmental, Social, and Governance (ESG) Disclosure on Firm Value: An Asymmetric Information Perspective in Indonesian Listed Companies. Binus Business Review, 15(1), 29–40. https://doi.org/10.21512/bbr.v15i1.10460
Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review, 22, S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
Bhaskaran, R. K., Sujit, K. S., & Mongia, S. (2023). Linkage between performance and sustainability initiatives in banking sector–An empirical examination. International Journal of Productivity and Performance Management, 72(1), 200–225.
Buallay, A. (2019). Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), 98–115.
Darsono, S. N. A. C., & Ma'la, A. (2024). Impact of ESG Practices on Sustainable Companies Performance in Indonesia. BALANCE: Economic, Business, Management and Accounting Journal, 21(1), 65–75. https://doi.org/10.30651/blc.v21i1.20333
Dolontelide, C. M., & Wangkar, A. (2019). The Effect of Sales Growth and Firm Size on the Company's Value in Food and Beverage Companies Listed on the Indonesia Stock Exchange. EMBA Journal: Journal of Economics, Management, Business and Accounting Research, 7(3).
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
Fuadi, A., Yulianti, V., Noor, A. F., & Putri, T. A. (2022). The Influence of Business Risk, Sales Growth and Company Age on Company Value. ASSET: Journal of Management and Business, 5(2).
Junius, D., Adisurjo, A., Rijanto, Y. A., & Adelina, Y. E. (2020). The Impact of ESG Performance on Firm Performance. Journal of Accounting Applications, 5(1), 21–41.
Finance, O. J. (2017). OJK Regulation Number 51/POJK. 03/2017 on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies. Statute Book of the Republic of Indonesia Year, 169.
Khansa Hasna Nur Khairunnisa, & Tantina Haryati. (2024). ESG Disclosure and Financial Performance for Corporate Value Moderated by Company Size. Reslaj: Religion Education Social Laa Roiba Journal, 6(6), 3075–3088. https://doi.org/10.47467/reslaj.v6i6.2337
Krisnando, K., & Novitasari, R. (2021). The effect of capital structure, company growth, and firm size on the value of companies in consumer goods companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2020 period. Journal of Accounting and Management, 18(2), 71–81.
Makhdalena, M., Zulvina, D., Zulvina, Y., Amelia, R. W., & Wicaksono, A. P. (2023). ESG and Firm Performance in Developing Countries: Evidence From ASEAN. Ethnocentrics, 22(1), 65–78. https://doi.org/10.15408/etk.v22i1.25271
Maurien, I. (2019). The Influence of Profitability, Firm Size, Firm Growth, Liquidity, Sales Growth on Company Value. Journal of Accounting Paradigm, 1(4), 1013–1021.
Muzayin, M. H. T., & Trisnawati, R. (2022). The Influence of Capital Structure, Company Size, Company Age and Profitability on Company Value (Empirical Study on Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX) in 2017-2019). Journal of Accounting, 3(1), 271–284.
Narotama, B., Achsani, N. A., & Santoso, M. H. (2023). Corporate Environmental, Social, and Governance (ESG) and SMEs’ Value (a Lesson From Indonesian Public SMEs). Indonesian Journal of Business and Entrepreneurship, 9(2), 197–207. https://doi.org/10.17358/ijbe.9.2.197
Negara, N. G. P., Ishak, G., & Priambodo, R. E. A. (2024). Impact of ESG Disclosure Score on Firm Value: Empirical Evidence From ESG Listed Company in Indonesia Stock Exchange. European Journal of Business and Management Research, 9(2), 114–118. https://doi.org/10.24018/ejbmr.2024.9.2.2064
Nirmalasari, Haryanto, D., & Safitri, H. (2020). Analysis of the Influence of Intellectual Capital and Profitability on Company Value on the Kompas100 Index on the Indonesia Stock Exchange. Journal of Productivity, 7, 47–54.
Nurannisa, S. R. (2024). ESG VS Corporate Performance, Corporate Empirical Test LQ45. Al-Kharaj: Journal of Sharia Economics, Finance & Business, 6(6), 5021–5033.
Olsen, B. C., Awuah-Offei, K., & Bumblauskas, D. (2021). Setting materiality thresholds for ESG disclosures: A case study of US mine safety disclosures. Resources Policy, 70, 101914.
Pertiwi, S. N., Muslim, A., & Widiastuti, M. C. (2024). Analysis of the influence of ESG and corporate governance performance on financial performance with digital transformation as a moderation variable in LQ45 companies. Scientific Journal of Management, Economics, & Accounting (MEA), 8(2), 1777–1796.
Putri, I. H., Meutia, I., & Yuniarti, E. (2022). Factors that affect the disclosure of materiality in sustainability reports. Journal of Accounting, 32(7), 1771–1784.
Rahayu, I., Isnanda, M., & Sanjaya, N. (2024). ESG Performance and Firm Value: An Empirical Study in Indonesia. Review of Integrative Business and Economics Research, 13(4), 513.
Rousilita Suhendah, G. A. (2020). The effect of company size, profitability, dividends and company age on company value. Journal of Accounting Paradigm, 2(2), 586. https://doi.org/10.24912/jpa.v2i2.7623
Sari, M. L., & Susanti, A. (2021). Factors that affect the Value of Manufacturing Companies on the IDX. Business Media, 13(3), 271–284.
Velte, P. (2019). The bidirectional relationship between ESG performance and earnings management–empirical evidence from Germany. Journal of Global Responsibility, 10(4), 322–338.
Wicaksono, A. P. (2023). Environmental, social, governance and firm performance in developing countries: Evidence from southeast Asian. Ethnocentrics, 22(1), 65–78.
Wirajaya, A., & Dewi, A. S. M. (2013). The influence of capital structure, profitability and company size on the company's value. E-Journal of Accounting, Udayana University, 4(2), 358–372.
Xu, Y., & Zhu, N. (2024). The Effect of Environmental, Social, and Governance (ESG) Performance on Corporate Financial Performance in China: Based on the Perspective of Innovation and Financial Constraints. Sustainability (Switzerland) , 16(8). https://doi.org/10.3390/su16083329
Zainuddin, Z., Shari, W., Bahaman, M. A., Yusof, R. M., & Abdul Karim, N. (n.d.). The Impact of Environmental, Social and Governance (ESG) Practices on the Financial Performance of Green Companies in Malaysia: An Empirical Analysis. The Indonesian Capital Market Review, 16(1), 5.