Impact of Community, Governance, Environment, Employees Performance on Firm Value and Profitability as mediating variable

Abstrak

This study analyzes the effect of ESG performance through community, governance, environment and employee indicators on company value and profitability as mediating variables in ESG leader companies listed on the IDX with an observation period of 2018 to 2022. The sample of this study was 17 companies or 85 observation data. We utilized the statistical package SMARTPLS analysis to assess both the direct and indirect effects. The hypothesized variables used content analysis, using binary (0 and 1) coding, to measure the extent of sustainability performance disclosure according to the Global Reporting Initiative (GRI) framework. This study found that ESG performance had a negative effect on company value. ESG performance also had a negative impact on profitability. Profitability had a positive impact on company value.