The Influence of ESG Score, Profitability, Firm Size, and Board Gender Diversity on the Firm Value of Mining Companies Listed on the Indonesia Stock Exchange (IDX)

Abstract

The acceleration of sustainability principles implementation in Indonesia is closely linked to the policies of the Financial Services Authority (OJK) through POJK Number 51/POJK.03/2017. This study applies a quantitative design with an associative approach to evaluate the effect of Environmental, Social, and Governance (ESG) scores, profitability, firm size, and Board Gender Diversity on firm value. The observation focus is directed at mining sectors listed on the Indonesia Stock Exchange (IDX) during the 2021–2024 period. Through the purposive sampling method, research samples that meet the predetermined criteria were obtained. Secondary data consisting of annual reports, sustainability reports, and stock price movements were analyzed using a panel data regression model supported by EViews 12 statistical software. The classical assumption test results indicate that the residual variance is homoscedastic, free from multicollinearity, and normally distributed. The partial inferential analysis results show that the ESG score and profitability contribute negatively but have no significant effect on firm value projected through the Tobin’s Q ratio. Meanwhile, firm size contributes negatively and significantly affects firm value. Conversely, Board Gender Diversity contributes positively but has not shown a statistically significant effect on the market valuation of entities in this sector. Simultaneously, all independent variables are highly capable of explaining fluctuations in firm value, thereby serving as a strategic reference for corporate management and investors in sustainability-based decision-making..