Financial performance and corporate social responsibility disclosure mediate environmental performance on firm value

Abstract

This study aims to provide empirical evidence regarding the effect of financial performance and corporate social responsibility disclosure as mediating the effect of environmental performance on firm value. The population of this study are companies that participate in the PROPER program established by the Ministry of Environment for the period 2018-2022, with a total sample that meets the criteria of 77 companies, so that a sample of 385 is obtained through purposive sampling method. Data collected using non-participant observation method. Hypothesis testing conducted in this study using the Partial Least Square (PLS) method with the SmartPLS 4.0 program tool. The results of the analysis provide evidence that environmental performance has no effect on firm value and corporate social responsibility disclosure, but has a positive effect on financial performance. Financial performance and corporate social responsibility disclosure have a positive effect on firm value. Financial performance mediates the indirect effect of environmental performance on firm value. Disclosure of corporate social responsibility does not mediate the indirect effect of environmental performance on firm value.