PROFITABILITY RATIO AND ENVIRONMENTAL, SOCIAL, AND GOVERNANCE DISCLOSURE ON STOCK PRICES WITH COMPANY SIZE AS A MODERATING VARIABLE

Zafira Putri Novitasari; Kholilah Kholilah

Authors

Zafira Putri Novitasari Accounting Department, UIN Maulana Malik Ibrahim, Malang, Indonesia
Kholilah Kholilah Accounting Department, UIN Maulana Malik Ibrahim, Malang, Indonesia

Keywords:

profitability, ESG disclosure, company size, stock price

Abstract

This study aims to analyze the effect of profitability, ESG disclosure, as well as company size on moderating effect on stock prices. The sample for this study consists of 36 companies listed on the Indonesia Stock Exchange that have complete financial statement data and ESG scores for the period 2019–2024. The data were obtained from the companies' annual reports and the Refinitiv Eikon database. The method used was a quantitative approach with panel data regression analysis. The results of the study indicate that profitability have a positive effect on stock prices, while ESG disclosure does not have an effect on stock prices. Additionally, company size was found to moderate the relationship between EPS and ESG on

stock prices, indicating that larger companies with higher asset sizes tend to be more valued by the market when they have good profitability and ESG performance. However, firm size cannot moderate the relationship between ROA and stock prices. These findings are expected to serve as a reference for company management in improving financial performance and transparent ESG disclosure to attract investor interest, as well as to add academic references related to the role of moderating variables in the relationship between ESG, profitability, and stock prices.

Downloads

Download data is not yet available.

References

Agustin, I. N., Suhendri, N., Wang, A., & Yulfiswandi. (2024). ESG Performance and Indonesia Stock Return. Jurnal Riset Akuntansi Dan Keuangan, 12(1), 919932. https://doi.org/10.17509/xxxx.xxx

Alfianti, D., & Andarini, S. (2017). Pengaruh Profitabilitas terhadap Harga Saham pada Perusahaan Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia. Jurnal Bisnis Indonesia, 8(1).

Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG Performance on Firm Value and Profitability. In Borsa Istanbul Review (Vol. 22, pp. S119–S127). Borsa Istanbul Anonim Sirketi. https://doi.org/10.1016/j.bir.2022.11.006

Bandawaty, E., & Nurfitria, I. P. (2022). Pengaruh Profitabilitas terhadap Harga Saham. KINERJA Jurnal Ekonomi Dan Bisnis, 5(1), 174–188.

Chandrarin, G. (2017). Metode Riset Akuntansi. Salemba Empat.

Dawes, J. (2000). Market Orientation and Company Profitability: Further Evidence Incorporating Longitudinal Data. Australian Journal of Management, 25(2), 173–199. https://doi.org/10.1177/031289620002500204

Inawati, W. A., & Rahmawati, R. (2023). Dampak Environmental, Social, Dan Governance (ESG) terhadap Kinerja Keuangan. Jurnal Akademi Akuntansi, 6(2), 225–241. https://doi.org/10.22219/jaa.v6i2.26674

Jirwanto, H., Aqsa, M. A., Agusven Tubel, Herman, H., & Sulfitri, V. (2024). Manajemen Keuangan. Penerbit Azka Pustaka. www.penerbitazkapustaka.com

Jogiyanto, H. (2010). Teori Portofolio dan Analisis Investasi (7th ed.). BPFE.

Kuna-Marshal, A., & Kłysik-Uryszek, A. (2020). CSR and Socially Responsible Investing Strategies in Transitioning and Emerging Economies (1st ed.). IGI Global.

Labiba, A., Rasmini, M., & Kostini, N. (2021). Pengaruh Earning per Share terhadap Harga Saham. Journal of Economics and Bussiness Mulawarman, 3, 519–526. http://journal.feb.unmul.ac.id/index.php/INOVASI

Leite, B. J., & Uysal, V. B. (2023). Does ESG Matter to Investors? ESG Scores and The Stock Price Response to New Information. Global Finance Journal, 57. https://doi.org/10.1016/j.gfj.2023.100851

Lestari, F. D., & Rahayu, R. (2024). Ukuran Perusahaan Memoderasi Profitabilitas, Likuiditas, dan Leverage terhadap Harga Saham. Jurnal Ekonomi Dan Bisnis, 18(3).

LSEG. (2024). Environmental, Social and Governance scores from LSEG.

Miralles-Quirós, M. M., Miralles-Quirós, J. L., & Redondo-Hernández, J. (2019). The Impact of Environmental, Social, and Governance Performance on Stock Prices: Evidence from The Banking Industry. Corporate Social Responsibility and Environmental Management, 1–11. https://doi.org/10.1002/csr.1759

Nenobais, A. H., Niha, S. S., & Manafe, H. A. (2022). Pengaruh Return on Asset (ROA), Return on Equity (ROE), Net Profit Margin (NPM) dan Earning Per Share (EPS) terhadap Harga Saham (Suatu Kajian Studi Literatur Manajemen Keuangan Perusahan). Jurnal Ekonomi Manajemen Sistem Informasi, 4(1), 10–22. https://doi.org/10.31933/jemsi.v4i1

Ohlson, J. A. (1995). Earnings, Book Values, and Dividends in Equity Valuation. Contemporary Accounting Research, 11(2), 661–687. https://doi.org/10.1111/j.1911-3846.1995.tb00461.x

Pramudya, W. H., Herutono, S., & Kapti, A. S. M. K. (2022). Profitabilitas, Harga Saham dan Ukuran Perusahaan Sebagai Variabel Moderasi. Jurnal Akuntansi, 32(7). https://doi.org/10.24843/EJA.2022.v

Qodary, H. F., & Tambun, S. (2021). Pengaruh Environmental, Social, Governance (SG) dan Retention Ratio terhadap Return Saham dengan Nilai Perusahaan sebagai Variabel Moderating. Jurnal Riset Ekonom, 1(2), 159–172.

Rahman, A. F., Bintoro, N. S., Dewi, A. A., & Kholilah, K. (2024). The Effect of ESG and Earnings Quality on the Value Relevance of Earnings and Book Value Dewi & Kholilah: The Effect of ESG and Earnings Quality on the Value. Australasian Accounting, Business and Finance Journal, 18(2).

Spence, M. (1973). Job Market Signaling. Quarterly Journal of Economics, 355–374. http://qje.oxfordjournals.org/

Suchman, M. C. (1995). Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20(3), 571–610.

Surgawati, I., Munawar, A. H., & Rahmani, D. A. (2019). Firm Size Memoderasi Pengaruh Return on Equity terhadap Harga Saham (Survey pada Sektor Food and Beverage yang Listing di Bursa Efek Indonesia). Jurnal Ekonomi Manajemen, 5(1), 41–50. http://jurnal.unsil.ac.id/index.php/jem

Trisnowati, Y., Achsani, N. A., Sembel, R., & Andati, T. (2022). The Effect of ESG Score, Financial Performance, and Macroeconomics on Stock Returns during the Pandemic Era in Indonesia. International Journal of Energy Economics and Policy, 12(4), 166–172. https://doi.org/10.32479/ijeep.13212

Zhou, D., & Zhou, R. (2022). ESG Performance and Stock Price Volatility in Public Health Crisis: Evidence from Covid-19 Pandemic. International Journal of Environmental Research and Public Health, 19(202), 1–15. https://doi.org/10.3390/ijerph19010202