Financial Performance and Firm Value: The Moderating Role of ESG Disclosure in Indonesian Mining Firms
Purpose: This study examines whether Return on Assets (ROA) affects firm value (Tobin’s Q) and whether Environmental, Social, and Governance (ESG) disclosure moderates this effect in Indonesian mining firms.
Methodology: An explanatory quantitative design with secondary data was applied to nine mining firms listed on the Indonesia Stock Exchange that issued complete annual and sustainability reports in 2021–2025 (45 firm-year observations). ESG disclosure was scored by content analysis of the 30 indicators of the National Association of Securities Dealers Automated Quotations (NASDAQ) ESG Reporting Guide 2.0. Moderated panel regression was estimated in EViews, and the Chow and Hausman tests selected the fixed effect model.
Results: ROA has a positive but insignificant effect on Tobin’s Q (coefficient 0.433, p = 0.176). The ROA × ESG interaction is positive (3.722) but not significant at the 5% level (p = 0.070). The model is jointly significant (adjusted R² = 0.809), largely because of firm fixed effects.
Conclusions: The evidence is insufficient to conclude that ROA influences firm value or that ESG disclosure alters that influence at the 5% level.
Limitations: The sample is small, the period is short, no control variables are included, and the binary disclosure index varies little across firms.
Contribution: The study tests ESG disclosure as a moderator, not a direct predictor, with recent evidence from a commodity-exposed extractive industry.