Economic Value Added, Sustainability Reporting, and Firm Value: The Moderating Role of Risk Level

Abstract

This study examines the effect of Economic Value Added (EVA) and sustainability reporting on firm value, as well as the moderating role of risk level in these relationships. The sample consists of basic material manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. Secondary data were obtained from companies’ annual reports accessed through the official IDX website and corporate websites. Using a purposive sampling technique, 42 firms were selected as the research sample. Panel data regression analysis with a moderating variable was employed, and the data were processed using EViews 12. The results indicate that Economic Value Added has a positive and significant effect on firm value, while sustainability reporting has a negative and insignificant effect. Furthermore, the risk level moderates the relationship between EVA and firm value by weakening its effect, but it does not moderate the relationship between sustainability reporting and firm value. These findings provide important implications for managers, investors, and policymakers in formulating value creation strategies, enhancing risk management practices, and optimizing sustainability disclosure.