Financial Performance and Firm Value: The Moderating Role of ESG Disclosure in Indonesian Mining Firms (Riset Akuntansi dan Bisnis Indonesia)

Summary

• The study covers nine mining firms listed on the Indonesia Stock Exchange over 2021–2025, giving 45 firm-year observations.p.1
• ROA has a positive but insignificant effect on Tobin's Q (coefficient 0.433, p = 0.176).p.1
• The ROA × ESG interaction is positive (3.722) but not significant at the 5% level (p = 0.070); adjusted R² is 0.809.p.1
• Mining output value rose from about IDR 832.34 trillion in 2020 to IDR 3,165.81 trillion in 2022, before declining to IDR 2,074.32 trillion in 2024.p.2
• The median ESG score of mining companies increased from 50.22 in 2023 to 50.50 in 2024 and 58.21 in 2025.p.3
• Mean Tobin's Q is 0.6383 and mean ESG disclosure is 0.8496.p.9

Key insights

1. The evidence is insufficient to conclude that ROA significantly influences firm value in this sample.p.1
2. ESG disclosure is not shown to moderate the effect of ROA on firm value at the 5% level.p.13
3. The average Tobin's Q below 1 indicates the market value of these firms plus liabilities was lower than the book value of their assets.p.9
4. The slope of ROA is approximately 0.869 at the highest observed ESG disclosure score of 0.9667.p.11
5. The small sample of 45 observations from nine companies may contribute to the insignificant ROA result.p.12
6. Most of the model's explanatory power comes from firm fixed effects rather than from the three variables individually.p.13
7. Financial Services Authority Regulation No. 51/POJK.03/2017 requires issuers and public companies to prepare sustainability reports.p.3