The Influence of Macroeconomics, Sustainability, Ownership, and Size on The Value of Non-Bank Soes Through Profit Management Mediation and Stock Return Moderation
Main Article Content
Abstract
Introduction: This study explores the factors affecting firm value in non-bank state-owned enterprises listed on the Indonesia Stock Exchange. Key variables include macroeconomics, corporate sustainability, ownership, and firm size, with stock returns as a moderating factor. The research addresses growing concerns about firm performance amid changing economic and corporate governance landscapes.
Objectives: To analyze the influence of macroeconomic factors, sustainability, ownership structure, and firm size on firm value, and to assess how stock returns moderate the effects of earnings management and CSR disclosure on firm value.
Methods: Using the Partial Least Squares (PLS) method, this study examines panel data from 2020 to 2023. The analysis includes direct effects of independent variables and moderating effects of stock returns on the relationships between earnings management, CSR, and firm value.
Results: Macroeconomic variables significantly and negatively affect firm value but have no significant impact on earnings management or CSR disclosure. Sustainability negatively influences earnings management and CSR, and positively affects firm value, though all effects are statistically insignificant. Ownership and firm size show positive effects, with only firm size significantly improving firm value. Both earnings management and CSR negatively affect firm value, while stock returns moderate these relationships, but none of the moderation effects are significant.
Conclusions: Firm size emerges as the only significant factor positively impacting firm value. Other variables show expected directional influences without statistical significance. These findings suggest internal firm characteristics may be more critical than external factors in enhancing firm value in the non-financial SOE sector.