The Role of Profitability in the Influence of ESG Disclosure and Agency Costs on Firm Value of IDX ESG Leaders Indexed

Abstract

This research aims to test and analyze the influence of ESG disclosure and agency costs on company value through profitability in IDX ESG Leaders indexed companies for the 2019-2023 period. The data sources for this research are Annual Reports and Sustainability Reports obtained on the Indonesian Stock Exchange website and each company's website. The population in this research is 927 companies listed on the IDX. The sample in this study was 15 companies obtained through purposive sampling technique with 5 years of observation so that the number of observations was 75. The data analysis technique used SEM-PLS assisted by Smart-PLS 3.0 software. The research results show that Agency Cost has an effect on Company Value through Profitability, but ESG Disclosure has no effect on Company Value through profitability in IDX ESG Leaders indexed companies.