Environmental Performance and Firm Value: Profitability as a Moderator

Alfiyah Aditya Rahmawati(1*), Anis Chariri(2)

(1) Universitas Diponegoro
(2) Universitas Diponegoro
(*) Corresponding Author


The objective of this study was to ascertain how the firm's value is influenced by environmental performance, using profitability as a moderating factor. Additionally, it sought to compare firm value, profitability, and ecological before, during and after Covid-19. The study used secondary data for a sample size of 50 manufacturing companies and participants in PROPER from 2019 to 2022. The results show no discernible relationship between firm value and environmental performance. The correlation between firm value and environmental performance is strengthened by the noteworthy positive moderation effect of probability. The firm value continued to drop both during and after the Covid-19 era. Environmental performance and profitability during COVID-19 show a decrease, but after 2022, both tend to be able to increase again, similar to the pre-COVID-19 period. The originality of this research lies in examining the comparisons before, during and after COVID-19 on environmental performance, firm value and profitability. Future research ideas include utilizing additional independent variables (e.g., CSR, company size, board of commissioners) that can impact firm value, as well as using alternative environmental performance measurements other than PROPER


Environment Performance; Firm Value; Profitability

Full Text:



Andersson, D. E., Ekman, A., Huila, A., & Tell, F. (2023). Industrial design rights and the market value of firms. Technological Forecasting and Social Change, 196. https://doi.org/10.1016/j.techfore.2023.122827

Apriandi, D., & Hexana Sri Lastanti. (2023). Apakah Kinerja Lingkungan Dan Kinerja Keuangan Dapat Mempengaruhi Nilai Perusahaan? Jurnal Ekonomi Trisakti, 3(1), 1219–1228. https://doi.org/10.25105/jet.v3i1.16058

Asiaei, K., Bontis, N., Alizadeh, R., & Yaghoubi, M. (2022). Green intellectual capital and environmental management accounting: Natural resource orchestration in favor of environmental performance. Business Strategy and the Environment, 31(1), 76–93. https://doi.org/https://doi.org/10.1002/bse.2875

Asnita, A., & Wahidahwati. (2019). Pengaruh Kinerja Lingkungan Terhadap Nilai Perusahaan Dengan Pengungkapan Informasi Lingkungan Sebagai Variabel Intervening. Jurnal Ilmu Dan Riset Akuntansi, 8(7), 1–19.

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/https://doi.org/10.1016/j.bir.2022.11.006

Bardos, K. S., Ertugrul, M., & Gao, L. S. (2020). Corporate social responsibility, product market perception, and firm value. Journal of Corporate Finance, 62. https://doi.org/10.1016/j.jcorpfin.2020.101588

Basse Mama, H., & Mandaroux, R. (2022). Do investors care about carbon emissions under the European Environmental Policy? Business Strategy and the Environment, 31(1), 268–283. https://doi.org/https://doi.org/10.1002/bse.2886

Choi, S., & Yoo, J. (2022). The Impact of Technological Innovation and Strategic CSR on Firm Value: Implication for Social Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(4). https://doi.org/10.3390/joitmc8040188

D’ Costa, M., & Habib, A. (2024). Local creative culture and firm value. Finance Research Letters, 59, 104701. https://doi.org/10.1016/j.frl.2023.104701

Damas, D., Maghviroh, R. EL, & Meidiyah, M. (2021). Pengaruh Eco-Efficiency, Green Inovation Dan Carbon Emission Disclosure Terhadap Nilai Perusahaan Dengan Kinerja Lingkungan Sebagai Moderasi. Jurnal Magister Akuntansi Trisakti, 8(2), 85–108. https://doi.org/10.25105/jmat.v8i2.9742

Daradkeh, H., Shams, S., Bose, S., & Gunasekarage, A. (2023). Does managerial ability matter for corporate climate change disclosures? Corporate Governance: An International Review, 31(1), 83–104. https://doi.org/https://doi.org/10.1111/corg.12436

Das, J. P., & Kumar, S. (2023). The dynamic effect of corporate financial hedging on firm value: The case of Indian MNCs. Borsa Istanbul Review, 23(3), 696–708. https://doi.org/10.1016/j.bir.2023.01.010

Dowling, J., & Pfeffer, J. (1975). Organizational Legitimacy: Social Values and Organizational Behavior. Pacific Sociological Review, 18(1), 122–136. https://doi.org/10.2307/1388226

Dyussembina, S., & Park, K. (2024). Book-tax differences, dividend payout, and firm value. International Review of Financial Analysis, 91. https://doi.org/10.1016/j.irfa.2023.103037

Fang, Y., Fiordelisi, F., Hasan, I., Leung, W. S., & Wong, G. (2023). Corporate culture and firm value: Evidence from crisis. Journal of Banking and Finance, 146. https://doi.org/10.1016/j.jbankfin.2022.106710

Fitriani, M., & Purnamasari, P. E. (2023). Peran Profitabilitas dalam Memoderasi Kinerja Lingkungan , Islamic Social Reporting dan Ukuran Dewan Komisaris Terhadap Nilai Perusahaan. SYARIKAT : Jurnal Rumpun Ekonomi Syariah, 6, 49–62.

Goldie Kelly, S., & Deliza Henny. (2023). Pengaruh Green Accounting Dan Kinerja Lingkungan Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Moderasi. Jurnal Ekonomi Trisakti, 3(2), 3301–3310. https://doi.org/10.25105/jet.v3i2.18051

Herianto, R. O., Alfiana, B. Z., Apriliyanti, F., Nurcahyono, N., Jatiningsih, D. E. S., & Wijayanti, P. (2023). What is The Company's Motivation for Doing CSR? An Analysis of Manufacturing Companies. MAKSIMUM: Media Akuntansi Universitas Muhammadiyah Semarang, 13(2), 209-217.

IMF. (2023). IMF ANNUAL MEETINGS UPDATE | OCTOBER 10, 2023. https://www.imf.org/en/News/Seminars/Campaigns/2023/AM2023-recap-day-2#:~:text=In our second daily recap,changing facility for strengthening countries’

Ji, P., & Wei, L. (2023). Hedging with derivatives to increase firm value. Finance Research Letters, 55. https://doi.org/10.1016/j.frl.2023.103981

Khaoula, F., & Moez, D. (2019). The moderating effect of the board of directors on firm value and tax planning: Evidence from European listed firms. Borsa Istanbul Review, 19(4), 331–343. https://doi.org/10.1016/j.bir.2019.07.005

Kim, S. F. (2023). Currency carry trades, risk management, and firm value: Evidence from Korean banking industry. Journal of International Financial Markets, Institutions and Money, 88. https://doi.org/10.1016/j.intfin.2023.101850

Kodriyah, K., Kurnia, D., Sa’adah, I. N., & Kholiyah, Y. (2023). Nilai Perusahaan, Kinerja Lingkungan dan Konservatisme Akuntansi. Jurnal Akuntansi, Keuangan, Dan Manajemen, 4(2), 141–152. https://doi.org/10.35912/jakman.v4i2.1768

Kumar, R., Sujit, K. S., Waheed, K. A., & Fernandez, M. (2021). Are Brand Value and Firm Value Related? An Empirical Examination. Global Business Review. https://doi.org/10.1177/0972150921995479

Kurnia, P., Emrinaldi Nur, D. P., & Putra, A. A. (2021). Carbon emission disclosure and firm value: A study of manufacturing firms in Indonesia and Australia. International Journal of Energy Economics and Policy, 11(2), 83–87. https://doi.org/10.32479/ijeep.10730

Li, J., Wu, Z., Yu, K., & Zhao, W. (2024). The effect of industrial robot adoption on firm value: Evidence from China. Finance Research Letters, 60, 104907. https://doi.org/10.1016/j.frl.2023.104907

Li, Z., Liao, G., & Albitar, K. (2020). Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation. Business Strategy and the Environment, 29(3), 1045–1055. https://doi.org/10.1002/bse.2416

Mardiana, I. A., & Wuryani, E. (2019). Pengaruh kinerja lingkungan terhadap nilai perusahaan dengan profitabilitas sebagai variabel pemoderasi. Jurnal Akuntansi Unesa, 8(1), 1–8. http://jurnalmahasiswa.unesa.ac.id/index.php/jurnal-akuntansi/

Na, H. J., Kang, H., & Lee, H. E. (2021). Does tax incentives affect future firm value for corporate sustainability? Sustainability (Switzerland), 13(22). https://doi.org/10.3390/su132212665

Pasirayi, S., & Fennell, P. B. (2021). The effect of subscription-based direct-to-consumer channel additions on firm value. Journal of Business Research, 123, 355–366. https://doi.org/10.1016/j.jbusres.2020.09.067

Poretti, C., Weisskopf, J. P., & de Vivie de Régie, P. (2024). Innovative business strategies, corporate performance, and firm value in the travel and leisure industry. International Journal of Hospitality Management, 118. https://doi.org/10.1016/j.ijhm.2023.103683

Purbawangsa, I. B. A., Solimun, S., Fernandes, A. A. R., & Mangesti Rahayu, S. (2020). Corporate governance, corporate profitability toward corporate social responsibility disclosure and corporate value (comparative study in Indonesia, China and India stock exchange in 2013-2016). Social Responsibility Journal, 16(7), 983–999. https://doi.org/10.1108/SRJ-08-2017-0160

Rahma, A. M., Nurcahyono, N., Sinarasri, A., & Ifada, L. M. (2023, May). Moderating Effects of Institutional Ownership on the Relation Between Capital Structure and Firm Performance. In International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022) (pp. 293-306). Atlantis Press.

Setiawan, A. (2023). KLHK hentikan kegiatan empat perusahaan penyebab polusi udara, warga Marunda: “Kenapa baru sekarang?” BBC News Indonesia. https://www.bbc.com/indonesia/articles/cjrz8lgynnno

Spence. (1973). Job Market Signaling Author ( s ): Michael Spence Source : The Quarterly Journal of Economics , Vol . 87 , No . 3 ( Aug ., 1973 ), pp . 355-374. The Quarterly Journal of Economics, 87(3), 355–374.

Xiao, Y., Han, N., Li, R., Ran, H., Zhou, S., & Tong, T. W. (2024). Trademarks and firm market value: Evidence from new trademark-firm linked data in China. Research Policy, 53(2). https://doi.org/10.1016/j.respol.2023.104941

Zhang, F., Qin, X., & Liu, L. (2020). The interaction effect between ESG and green innovation and its impact on firm value from the perspective of information disclosure. Sustainability (Switzerland), 12(6). https://doi.org/10.3390/su12051866

Article Metrics

Abstract view : 44 times
PDF - 0 times

DOI: https://doi.org/10.26714/mki.14.1.2024.1-12



MAKSIMUM: Media Akuntansi Universitas Muhammadiyah Semarang 
ISSN 2087-2836 (print) | ISSN 2580-9482 (online)
Organized by Department of Accounting, Faculty of Economic and Business, Universitas Muhammadiyah Semarang, Semarang, Indonesia
Published by Program Studi Akuntansi Universitas Muhammadiyah Semarang
W : https://jurnal.unimus.ac.id/index.php/MAX
E : [email protected], [email protected]

Maksimum: Media Akuntansi Universitas Muhammadiyah Semarang is licensed under a Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License.