Determinants of Firm Value in Indonesia’s Coal Industry: ESG, Capital Structure, Commodity Prices
DOI:
https://doi.org/10.70550/joseb.v3i1.350Keywords:
Environmental, Social, and Governance (ESG), Capital Structure, Coal Commodity Prices, Firm Value, Panel Data RegressionAbstract
Objectives: This study aims to examine the effect of Environmental, Social, and Governance (ESG) disclosure, capital structure, and coal commodity prices on firm value in coal mining companies listed on the Indonesia Stock Exchange during the 2022–2024 period.
Methodology: The research employs a quantitative approach with a causal design using panel data from 19 companies and 57 observations. The data are analyzed through panel data regression using the Random Effect Model.
Findings: The results indicate that ESG disclosure and coal commodity prices do not have a significant effect on firm value, whereas capital structure shows a positive and significant influence. These findings suggest that the market responds more strongly to internal financing policies than to sustainability information or external commodity price fluctuations.
Conclusion: The study concludes that optimizing capital structure is a primary factor in enhancing firm value, while ESG implementation needs to be aligned with financial performance to gain stronger market recognition.
Downloads
References
Adamska, A., and Dabrowski, T. J. (2025). Does the Underlying Design of Environmental, Social, and Governance (ESG) Indices Affect Investor Reactions? The Role of Legitimacy and Reputation Effects. Sustainability (Switzerland), 17(9), 1–22. https://doi.org/10.3390/su17094031
Aprullah, M. P., Diantimala, Y., Arfan, M., and Irsyadillah, I. (2025). The Role of ESG Committee on Indonesian Companies in Promoting Sustainable Practice to Creditors: Symbolic or Substantive? International Journal of Financial Studies, 13(4), 180. https://doi.org/10.3390/ijfs13040180
Barontini, R., and Gioja, L. (2025). The market power of ESG index providers: The effects of rebalancing ESG-themed indices. Research in International Business and Finance, 77(PA), 102902. https://doi.org/10.1016/j.ribaf.2025.102902
Desmita, D., and Sihombing, P. (2024). Sustainability, Profitability and Added Value Moderated by Company Value on Stock Returns Sri-Kehati Index. Asean International Journal of Business, 3(1), 62–74. https://doi.org/10.54099/aijb.v3i1.832
Dorothy, P., and Endri, E. (2024). Environmental, social and governance disclosure and firm value in the energy sector: The moderating role of profitability. Problems and Perspectives in Management, 22(4), 588–599. https://doi.org/10.21511/ppm.22(4).2024.44
Duan, Y., Yang, F., and Xiong, L. (2023). Environmental, Social, and Governance (ESG) Performance and Firm Value: Evidence from Chinese Manufacturing Firms. Sustainability (Switzerland), 15(17). https://doi.org/10.3390/su151712858
Endri, E., Rinaldi, M., Ian, D. A., Saing, B., and Aminudin, A. (2021). Oil price and stock return: Evidence of mining companies in Indonesia. International Journal of Energy Economics and Policy, 11(2), 110–114. https://doi.org/10.32479/ijeep.10608
Escobar-Saldivar, L. J., Villarreal-Samaniego, D., and Santillan-Salgado, R. J. (2025). The Effects of ESG Scores and ESG Momentum on Stock Returns and Volatility: Evidence from U.S. Markets. Journal of Risk and Financial Management, 18(7), 1–21. https://doi.org/10.3390/jrfm18070367
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.
Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25 (Edisi 9). Baand Penerbit Universitas Diponegoro.
Hamdouni, A. (2025). Value Creation Through Environmental, Social, and Governance (ESG) Disclosures. Journal of Risk and Financial Management, 18(8). https://doi.org/10.3390/jrfm18080415
Hotelling, H. (1931). The Economics of Exhaustible Resources. Journal of Political Economy, 39(2), 137–175. https://doi.org/https://doi.org/10.1086/254195
Jensen, M. C., and Meckling, W. H. (1976). Theory of the Firm: Managerial. Journal of Financial Economics, 3, 305–360. https://doi.org/http://dx.doi.org/10.1016/0304-405X(76)90026-X
Khiari, W., Ben Flah, I., Lajmi, A., and Bouhleli, F. (2024). The Stock Market Reaction to Green Bond Issuance: A Study Based on a Multidimensional Scaling Approach. Journal of Risk and Financial Management, 17(9). https://doi.org/10.3390/jrfm17090408
Kraus, A., and Litzenberger, R. H. (1973). A STATE‐PREFERENCE MODEL OF OPTIMAL FINANCIAL LEVERAGE. The Journal of Finance, 28(4), 911–922. https://doi.org/10.1111/j.1540-6261.1973.tb01415.x
Pardomuan, Triadji, I., and Busnetty, I. (2025). Performance analysis of value and growth investing in the Indonesia Stock Exchange. Media Riset Akuntansi, Auditing & Informasi, 25(2), 185–212.
Prabawati, P. I., & Rahmawati, I. P. (2022). The effects of environmental, social, and governance (ESG) scores on firm values in ASEAN member countries.
Pujiastuti, A., Yunita, R. D. S., and Astuti, F. Y. (2024). Esg Performance, Debt Equity Choices, and Rapid Adjustments in Indonesia. Jurnal Akuntansi and Keuangan Indonesia, 21(1), 64–84. https://doi.org/10.21002/jaki.2024.04
Samosir, T., and Sihombing, P. (2023). Analysis of the influence internal and external factors on the performance of IDXV30. JPPI (Jurnal Penelitian Pendidikan Indonesia), 9(3), 1824. https://doi.org/10.29210/020232849
Sihombing, P. (2023). Corporate Financial Management (2 ed.). PT Penerbit IPB Press.
Sihombing, P., Hariandja, N. M., and Zakchona, E. (2025). Optimal Capital Structure to Increase Indonesia Firm Value. Montenegrin Journal of Economics, 21(3), 97–110. https://doi.org/10.14254/1800-5845/2025.21-3.8
Sihombing, P., Husni, R. A., and Zakchona, E. (2023). Financial ratios and institutional ownership impact on healthcare firm’s value: A moderation role of leverage. Jurnal Ekonomi and Bisnis, 26(2), 431–448. https://doi.org/10.24914/jeb.v26i2.9372
Sihombing, P., Hutajalu, C. B. B., and Suparyati, A. (2023). Financial Performance and Capital Structure on Firm Value with Commodity Prices as a Moderating Variable. Research of Business and Management, 1(2), 57–66. https://doi.org/10.58777/rbm.v1i2.80
Sihombing, P., and Priambhodo, Y. D. (2024). The Effect of Coal Production, Profitability, Leverage, Newcastle Price on Firm Value with Renewable Energy Moderation. Research of Economics and Business, 2(1), 25–38. https://doi.org/10.58777/reb.v2i1.203
Sihombing, P. R. (2021). Analisis Regresi Data Panel: Statistik Multivariat dalam Riset (Nomor December). Widina Bhakti Persada Bandung.
Sihombing Pardomuan, and Zakchona Elia. (2024). Determinants of profitability, liquidity, solvency, and activity ratios on the stock price with dividend payout as moderating variable. Jurnal Ekonomi and Bisnis, 27(Oktober), 1–24.
Spence, M. (1973). Job market signaling. Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010
Suchman, M. C. (1995). Managing Legitimacy: Strategic and Institutional Approaches. The Academy of Management Review, 20(3), 571. https://doi.org/10.2307/258788
Sugiyono. (2018). Metode penelitian kuantitatif, kualitatif, and R&D. Alfabeta.
Wang, L., Sha, Y., Li, Y., and Wang, T. (2025). The double-edged effects of the ESG rating on analyst forecast performance. International Review of Economics and Finance, 103(June), 104547. https://doi.org/10.1016/j.iref.2025.104547
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Journal of Sustainable Economic and Business
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
