Financial Performance Memediasi Sustainability Report dan Good Corporate Governance Terhadap Firm Value

Abstract

Purpose: This study was conducted to investigate the influence of sustainability Report, the proportion of independent commissioners on the board, and institutional ownership on firm value. In this relationship, financial performance was positioned as a mediating variable among energy companies listed on the Indonesia Stock Exchange during the 2022–2024 period. Method: A quantitative research design was employed using secondary data collected from companies’ annual reports and sustainability reports. The research sample comprised 35 energy-sector firms selected through purposive sampling, resulting in a total of 105 firm-year observations. The data were analyzed using panel regression techniques with EViews 13 software, while the mediating role of financial performance was assessed through the Sobel test. Finding: The findings revealed that sustainability Report contributes positively and significantly to both financial performance and firm value. In contrast, the presence of independent commissioners was found to have a significant negative impact on financial performance as well as firm value. Meanwhile, institutional ownership did not demonstrate a statistically significant effect on either financial performance or firm value. Further analysis indicated that financial performance partially mediates the association between sustainability Report and firm value, as well as the relationship between independent commissioners and firm value. However, no mediating effect of financial performance was identified in the linkage between institutional ownership and firm value. Novelty: The originality of this study lies in the adoption of the Global Report Initiative (GRI) 2021 framework, which encompasses 117 disclosure indicators, the inclusion of institutional ownership as an additional corporate governance mechanism, and the application of the Quintuple Bottom Line perspective. This framework was utilized to explain the interconnections among sustainability practices, corporate governance, financial performance, and firm value within the context of Indonesia’s energy industry.