The Effect of Corporate Social Responsibility Disclosure, Profitability, and Firm Size on Firm Value: The Moderating Role of Environmental Performance

Abstract

Firm value is an important indicator of corporate success in creating wealth for shareholders and other stakeholders. In addition to financial performance, firm value is also influenced by non-financial factors such as Corporate Social Responsibility (CSR) disclosure and environmental responsibility. This study aims to examine the effect of CSR disclosure, profitability, and firm size on firm value and to analyze the moderating role of environmental performance in these relationships. This research employs a quantitative approach using secondary data obtained from companies’ annual reports and sustainability reports during the observation period. The data are analyzed using panel data regression and Moderated Regression Analysis (MRA). The results show that CSR disclosure and profitability have a significant effect on firm value, while firm size does not have a significant direct effect. Environmental performance strengthens the relationship between CSR disclosure and firm value but does not strengthen the relationship between firm size and firm value and weakens the relationship between profitability and firm value. These findings indicate that firm value is influenced by the interaction between financial and non-financial factors within the framework of stakeholder theory.