The Influence of Environmental Cost, Leverage, Environmental Performance, Profitability (ROA) on Company Value

Abstract

This study aims to examine the influence of environmental costs, leverage, environmental performance, and profitability on firm value in energy sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The study applies a quantitative approach with descriptive methods and utilizes secondary data sourced from annual reports and corporate sustainability reports. The sample was determined using a purposive sampling technique, resulting in 41 companies meeting the research criteria with a total of 164 observation units. Firm value was measured using the Tobin's Q ratio, while leverage was proxied by the Debt to Asset Ratio (DAR), profitability was measured using Return on Assets (ROA), and environmental performance was assessed using the PROPER rating. Meanwhile, environmental costs were measured by the proportion of environmental costs to net profit after tax. Data analysis was conducted using statistical analysis techniques to test the influence of each independent variable on firm value. The results of this study are expected to provide empirical evidence regarding the determinants of firm value in the energy sector in Indonesia, as well as serve as a reference for academics, investors, and management in supporting decision-making oriented towards increasing firm value.