Capital Structure, Investment Decisions, and ESG on Firm Value: The Moderating Role of Profitability

Authors

  • Adelia Divanda Azwardi University of Pembangunan Nasional Veteran Jawa Timur image/svg+xml
  • Tantina Haryati University of Pembangunan Nasional Veteran Jawa Timur image/svg+xml

DOI:

https://doi.org/10.31000/bvaj.v9i2.15213

Keywords:

Capital Structure, Investment Decisions, ESG, Firm Value, Profitability

Abstract

This study aims to analyze how capital structure, investment decisions, and Environmental, Social, and Governance (ESG) affect firm value, with profitability serving as a moderating variable. The research subjects are energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. A quantitative approach was employed using the purposive sampling method, resulting in 50 observations from 10 companies. The data were analyzed using Moderated Regression Analysis (MRA) with SPSS version 30. The results indicate that investment decisions have a positive and significant effect on firm value, while capital structure and ESG have no significant effect. Profitability was found to strengthen the relationship between capital structure and investment decisions on firm value, but it did not moderate the relationship between ESG and firm value. These findings prove that the increase in the value of a company in the energy sector is more influenced by the effectiveness of investment decisions supported by good profitability than by capital structure policies or the level of ESG disclosure.

References

Abdi, Y., Li, X., & Cà mara-Turull, X. (2022). Exploring The Impact of Sustainability (ESG) Disclosure on Firm Value and Financial Performance (FP) in Airline Industry: The Moderating Role of Size and Age. Environment, Development and Sustainability, 24, 5052–5079. https://doi.org/10.1007/s10668-021-01649-w

Almahadin, H. A., & Oroud, Y. (2019). Capital Structure-Firm Value Nexus: The Moderating Role of Profitability. Revista Finanzas Y Política Económica, 11(2), 375–386. https://doi.org/https://doi.org/10.14718/revfinanzpolitecon.2019.11.2.9

Almomani, T. M., Obeidat, M. I. S., Almomani, M. A., & Darkal, N. M. A. M. Y. (2022). Capital Structure and Firm Value Relationship: The Moderating Role of Profitability and Firm Size Evidence from Amman Stock Exchange. WSEAS Transactions on Environment and Development, 18, 1073–1084. https://doi.org/10.37394/232015.2022.18.102

Ardana, K. A., & Wahyuni, M. A. (2024). Pengaruh Inflasi, Suku Bunga, dan Solvabilitas terhadap Nilai Perusahaan pada Perusahaan Perbankan yangTerdaftar di Bursa Efek Indonesia Tahun 2021-2023. VJRA: Vokasi Jurnal Riset Akuntansi, 13(2), 47–58.

Ardillah, K., & Thenia, T. (2021). Corporate Social Responsibility, Investment Decisions, and Managerial Ownership on Value of The Company : Evidence from Indonesia. Ilomata International Journal of Tax and Accounting, 2(4), 268–285. https://doi.org/10.52728/ijtc.v2i4.341

Arofah, S. N., & Khomsiyah, K. (2023). Pengaruh Good Corporate Governance dan Environmental Social Governance terhadap Nilai Perusahaan dengan Kinerja Keuangan Sebagai Moderasi. Jurnal Informatika Ekonomi Bisnis, 5(1), 125–133. https://doi.org/10.37034/infeb.v5i1.208

Basuki, B., & Yulianah, S. (2019). Pengaruh Keputusan Pendanaan, Keputusan Investasi, dan Profitabilitas terhadap Nilai Perusahaan (Pada Sektor Aneka Industri yang Terdaftar di Bursa Efek Indonesia Periode 2010-2014). Competitive Jurnal Akuntansi Dan Keuangan, 2(2), 107–121.

Fitri, E. P. N., & Haryati, T. (2022). Pengaruh Profitabilitas, Ukuran Perusahaan, Leverage, dan Pengungkapan CSR terhadap Nilai Perusahaan. Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah, 4(6), 1926–1941. https://doi.org/10.47467/alkharaj.v4i6.1433

Hamidah, L., & Ramdani, E. (2023). Pengaruh Struktur Modal, Ukuran Perusahaan dan Keputusan Investasi terhadap Nilai Perusahaan. Jurnal Akuntansi Barelang, 7(2), 37–47.

Jumady, E., Sahidah, S., Arief, M. F., & Utara, I. H. (2022). Nilai Perusahaan: Efek Kebijakan Dividen, Kebijakan Hutang dan Keputusan Investasi pada Industri Manufaktur. Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi), 6(1), 991–1003.

Kaur, P., & Kaur, R. (2019). Effects of Strategic Investment Decisions on Value of Firm: Evidence from India. Paradigm: A Management Research Journal, 23(1), 1–19. https://doi.org/10.1177/0971890719835442

Kristanto, C., Putri, A. P., Melisa, M., & Suriyani, S. (2020). Pengaruh Kepemilikan Manajerial, Kebijakan Dividen, Profitabilitas, Kebijakan Hutang dan Keputusan Investasi terhadap Nilai Perusahaan Sektor Konstruksi yang Terdaftar di BEI Periode 2014-2017. Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi), 4(3), 645–662.

Maulidina, W., Biduri, S., Maryanti, E., & Hermawan, S. (2024). Impact of Profitability on Investment Decision, Firm Size and Divident Policy on Firm Value. Journal of Accounting and Business Education, 8(3), 14–30. https://doi.org/10.17977/jabe.v8i3.37298

Mirza, N. I., Malik, Q. A., & Mahmood, C. K. (2020). The Value of Board Diversity in The Relationship of Corporate Governance and Investment Decisions of Pakistani Firms. Journal of Open Innovation: Technology, Market, and Complexity, 6, 1–16. https://doi.org/10.3390/joitmc6040146

Mulyani, R., & Oktaviani, R. F. (2022). Analysis of Funding and Investation Decisions to The Value of Company with Profitability as Moderation in Pharmacy Sub-Sector Companies Before and During The Covid-19 Pandemic. JESKaPe: Jurnal Ekonomi Syariah, Akuntansi Dan Perbankan, 6(2), 224–236. https://journal.iainlhokseumawe.ac.id/index.php/jeskape/article/view/515/286

Nguyen, T. L. A., & La, T. T. T. (2025). ESG And Firm Value in Vietnam: The Moderating Role of Profitability. International Journal of Analysis and Applications, 23, 234. https://doi.org/10.28924/2291-8639-23-2025-234

Nofrian, M. R., & Sebrina, N. (2024). Pengaruh ESG terhadap Nilai Perusahaan dengan Kepemilikan Pemerintah dan Sensitivitas Industri Sebagai Variabel Pemoderasi. Jurnal Nuansa Karya Akuntansi, 2(1), 17–33. https://doi.org/10.24036/jnka.v2i1.21

Nurazi, R., Zoraya, I., & Wiardi, A. H. (2020). The Influence of Good Corporate Governance and Capital Structure on Firm Value: The Mediation Role of Financial Performance. Media Ekonomi Dan Manajemen, 35(2), 230. https://doi.org/10.24856/mem.v35i2.1554

Permadani, D. A., Novitasari, M., & Nurhayati, P. (2021). Pengaruh Struktur Modal dan CSR terhadap Nilai Perusahaan dengan Profitabilitas sebagai Variabel Moderasi. Seminar Inovasi Manajemen Bisnis Dan Akuntansi (Simba), 3, 1–25. https://prosiding.unipma.ac.id/index.php/SIMBA/article/view/2185

Piristina, F. A., & Khairunnisa, K. (2019). Analisis Pengaruh Kebijakan Dividen, Keputusan Investasi Dan Keputusan Pendanaan Terhadap Nilai Perusahaan. Jurnal ASET (Akuntansi Riset), 11(1), 123–136. https://doi.org/10.17509/jaset.v11i1.16620

Pramesti, W. C., Sudarma, M., & Ghofar, A. (2024). Environmental, Social, And Governance (ESG) Disclosure, Intellectual Capital And Firm Value: The Moderating Role Of Financial Performance. Jurnal Reviu Akuntansi Dan Keuangan, 14(1), 103–121. https://doi.org/10.22219/jrak.v14i1.32849

Pramudita, N. A., & Budiwitjaksono, G. S. (2024). Pengaruh Environmental Social Governance dan Intellectual Capital terhadap Nilai Perusahaan; Peran Moderasi Profitabilitas. Costing, Journal of Economic, Business and Accounting, 7(4), 8875–8889. https://doi.org/https://doi.org/10.31539/costing.v7i4.10631

Rahmah, N. A., Purwohedi, U., & Handarini, D. (2024). The Moderating Role of Profitability and Firm Size in ESG Disclosure Towards Firm Value. International Journal Of Education, Social Studies, And Management (IJESSM), 4(2), 700–719. https://doi.org/10.52121/ijessm.v4i2.345

Rosalia, J., Utami, W. B., & Pratiwi, D. N. (2022). Pengaruh Struktur Modal, Profitabilitas, Kebijakan Dividen, Sales Growth, dan Ukuran Perusahaan terhadap Nilai Perusahaan (Studi Kasus pada Perusahaan Properti dan Real Estate yang Terdaftar pada Bursa Efek Indonesia Tahun 2015-2019). Jurnal Akuntansi Dan Pajak, 22(2), 987–995. http://jurnal.stie-aas.ac.id/index.php/jap

Safaruddin, Nurdin, E., & Indah, N. (2023). Pengaruh Struktur Modal dan Ukuran Perusahaan terhadap Nilai Perusahaan yang Terdaftar di Bursa Efek Indonesia. Jurnal Akuntansi Dan Keuangan, 08(01), 166–179. http://jak.uho.ac.id/index.php/journal

Safriani, M. N., & Utomo, D. C. (2020). Pengaruh Environmental, Social, Governance (ESG) Disclosure terhadap Kinerja Perusahaan. Diponegoro Journal of Accounting, 9(3), 1–11. http://ejournal-s1.undip.ac.id/index.php/accounting

Sari, M. A., Wati, L. N., & Rahardjo, B. (2020). Peran Profitabilitas dalam Memoderasi Pengaruh Struktur Modal dan Kebijakan Dividen terhadap Nilai Perusahaan. Jurnal Akuntansi, 9(1), 2301–4075. http://ejournal.stiemj.ac.id/index.php/akuntansi

Sari, R., Rifan, D. F., & Selvina, M. (2025). Pengaruh Pengungkapan Sustainability Report, Kinerja Lingkungan, dan Struktur Modal terhadap Nilai Perusahaan dengan Ukuran Perusahaan sebagai Variabel Moderasi. Jurnal Keuangan Dan Manajemen Terapan, 6(1), 444–470. https://ejurnals.com/ojs/index.php/jkmt

Sherine, C., Wiyanto, H., & Budiono, H. (2022). The Effect of Investment Decision, Funding Decision, and Profitability on The Firm Value of Consumer Goods Industry Registered in Indonesia Stock Exchange During 2017-2020. Advances in Economics, Business and Management Research, 216, 552–559. https://doi.org/10.2991/aebmr.k.220501.084

Siti Bahriah, I., Norisanti, N., & Danial, R. D. M. (2022). The Role of Profitability in Moderating The Influence of Capital Structure and Company Size on Company Size on Company Value in Food and Beverage Sub Sector Companies Listed on The Indonesia Stock Exchange 2017-2019. Costing: Journal of Economic, Business and Accounting, 5(2), 1444–1451.

Suharto, A. B., Subiyantoro, E., Cahyaningsih, D. S., Zuhroh, D., & Sitinjak, N. D. (2024). Pengaruh Pengungkapan ESG dan Net Foreign Flow terhadap Nilai Perusahaan Sektor Manufaktur. Jurnal Aplikasi Akuntansi, 8(2), 495–506. https://doi.org/10.29303/jaa.v8i2.389

Suhendar, R. P. A., & Paramita, S. (2024). Pengaruh Keputusan Investasi, Ukuran Perusahaan, Keputusan Pendanaan dan Kebijakan Dividen terhadap Nilai Perusahaan pada Perusahaan Sub Sektor Perbankan yang Terdaftar di BEI Periode 2018-2022. Equilibrium, 13(1), 99–114. https://doi.org/http://dx.doi.org/10.35906/equili.v13i1.1883

Susiati, R. D., & Cahya, B. T. (2024). Analisis Tingkat Profitabilitas, Struktur Modal, dan Pengungkapan Environmental, Social, Governance (ESG) terhadap Nilai Perusahaan. Jurnal Ekonomi Dan Bisnis Islam IAIN Kudus, 2(3), 397–409. http://jim.ac.id/index.php/JEBISKU/

Syamsudin, S., Setiadi, I., Santoso, D., & Setiany, E. (2020). Capital Structure and Investment Decisions on Firm Value with Profitability Decisions on Firm Value with Profitability as a Moderator as a Moderator. Jurnal Riset Akuntansi Dan Keuangan Indonesia, 2020(3), 287–295. http://journals.ums.ac.id/index.php/reaksi/index

Umdiana, N., & Claudia, H. (2020). Struktur Modal Melalui Trade Off Theory. Jurnal Akuntansi Kajian Ilmiah Akuntansi (JAK), 7(1), 52–70. https://doi.org/10.30656/jak.v7i1.1930

Vivy, V., Hijriah, A., & Fahmi, M. (2024). The Impact Of Green Accounting and Environmental, Social, and Governance (ESG) Disclosure On Firm Value. Current Jurnal Kajian Akuntansi Dan Bisnis Terkini, 5(2), 222–234. https://current.ejournal.unri.ac.id

Wicaksono, R., & Mispiyanti. (2020). Analisis Pengaruh Profitabilitas dan Kebijakan Dividen Terhadap Nilai Perusahaan dengan Struktur Modal sebagai Variabel Mediasi. Owner: Riset Dan Jurnal Akuntansi, 4(2), 396–411. https://doi.org/10.33395/owner.v4n2.237

Xaviera, A., & Rahman, A. (2024). The Role of Business Strategy in Moderating The Effect of ESG Performance on Firm Value. Jurnal Akuntansi Bisnis, 17(1), 70–89. https://doi.org/10.30813/jab.v17

Downloads

Published

2025-12-09

Issue

Vol. 9 No. 2 (2025): December

Section

Articles

License

pernyataan bahwa pemegang hak artikel


Authors who publish with International Journal of Advances in Intelligent Informatics agree to the following terms: Authors retain copyright and grant the International Journal of Advances in Intelligent Informatics right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material) the work for any purpose, even commercially with an acknowledgement of the work's authorship and initial publication in International Journal of Advances in Intelligent Informatics. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in International Journal of Advances in Intelligent Informatics. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

Â