Article Sidebar

Download
PDF

Main Article Content

Abstract

This study aims to examine the impact of accounting information (Earnings per Share and Book Value per Share), debt financing (short-term and long-term debt), asset investment (current and fixed), and dividend payout ratio on firm market value, while considering sustainable development (SD), measured through ESG index participation, as a moderating variable. The research uses a sample of manufacturing firms listed on the Indonesia Stock Exchange (IDX) during 2022–2024, selected through purposive sampling based on consistency in reporting and dividend distribution. Data were obtained from annual financial reports and sustainability reports and analyzed using E-Views software. The findings indicate that EPS and BVPS significantly influence market value, but this effect weakens when ESG engagement is taken into account. Short- and long-term debt financing show a negative association with market value, while fixed asset investment and dividend payout have positive impacts. Furthermore, sustainable development plays a moderating role in strengthening or weakening the relationship between financial variables and market value. These results highlight the importance of firms integrating sustainability into their financial strategies and investment decisions to enhance long-term market value and investor confidence.

Keywords

Earnings per Share Book Value per Share Debt Financing Asset Investment Dividend Payout Sustainable Development ESG

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Pasaribu, H. E. R., Triantoro, I. G., & Muchtar, S. (2025). The Impact of Sustainable Development as a Moderating Variable in the Relationship Between Financial Performance and Market Value. Amkop Management Accounting Review (AMAR), 5(2), 1502–1512. https://doi.org/10.37531/amar.v5i2.3413
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abhyankar, A., & Dunning, A. (2023). A meta-analysis of the effect of the usage of debt on the valuation of the company. Academy of Accounting and Financial Studies Journal, 27(4), 1–16.
  2. Aamir, M., & Shah, S. Z. A. (2011). Dividend announcements and the abnormal stock returns for the event firm and its rivals. Australian Journal of Business and Management Research, 1(8), 72–76.
  3. Alipour, M. (2011). Working capital management and corporate profitability: Evidence from Iran. World Applied Sciences Journal, 12(7), 1093–1099.
  4. Bhattacharya, S. (1979). Imperfect information, dividend policy, and the “bird in the hand” fallacy. The Bell Journal of Economics, 10(1), 259–270.
  5. Brigham, E. F., & Houston, J. F. (2021). Fundamentals of Financial Management (15th ed.). Cengage Learning.
  6. Bui, T. N., Nguyen, D. H., & Pham, T. V. (2023). The impact of capital structure on firm performance in Vietnam. International Journal of Financial Studies, 11(3), 100. https://doi.org/10.3390/ijfs11030100
  7. Chen, Q., & Xie, W. (2022). ESG disclosure and firm value: Investor perspective. Journal of Sustainable Finance and Investment, 12(2), 221–238.
  8. Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67.
  9. Deloof, M. (2003). Does working capital management affect the profitability of Belgian firms? Journal of Business Finance & Accounting, 30(3–4), 573–588. https://doi.org/10.1111/1468-5957.00008
  10. Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45–64. https://doi.org/10.1016/j.gfj.2017.03.001
  11. Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233.
  12. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th ed.). Pearson Education.
  13. Hanafi, M. M., & Halim, A. (2012). Analisis Laporan Keuangan. Yogyakarta: UPP STIM YKPN.
  14. Investopedia. (2023). Dividend signaling. Retrieved from https://www.investopedia.com/terms/d/dividendsignaling.asp
  15. Kayani, U. N., Iqbal, Z., & Khan, A. (2025). Sustainable investing, ESG effectiveness, and market value in OECD regions. International Journal of Sustainability in Financial Markets, 12(1), 55–70.
  16. Khomidah, N., & Setiawan, B. (2022). The influence of EPS and BVPS on stock price in ASEAN banking industry. Asian Journal of Accounting and Governance, 13(1), 33–41.
  17. Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2020). Intermediate Accounting (17th ed.). Wiley.
  18. Lawrence, P. (2020). Working capital and current asset investment policies. Journal of Corporate Finance, 15(2), 112–125.
  19. Li, J., Huang, Z., & Liu, Y. (2023). ESG performance and firm value: Evidence from China. Review of Business Management, 25(2), 134–150.
  20. Lintner, J. (1956). Distribution of incomes of corporations among dividends, retained earnings, and taxes. American Economic Review, 46, 97–113.
  21. Makhdalena, R., Santoso, A., & Fadillah, H. (2023). ESG and Tobin’s Q in ASEAN: Empirical evidence. Asian Journal of Sustainability, 8(1), 44–59.
  22. Mitra, P. K., & Naik, O. (2021). Debt financing and agency cost in Indian real estate firms. Asia-Pacific Journal of Business Administration, 13(4), 395–415. https://doi.org/10.1108/APJBA-01-2021-0035
  23. Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221.
  24. Nicholas, C., Kim, D., & Zheng, H. (2023). ESG risk, social media exposure, and stock return sensitivity. Finance Research Letters, 54, 102748.
  25. Ortiz-de Mandojana, N., & Bansal, P. (2016). The long-term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37(8), 1615–1631.
  26. Padachi, K. (2006). Trends in working capital management and its impact on firms’ performance: An analysis of Mauritian small manufacturing firms. International Review of Business Research Papers, 2(2), 45–58.
  27. Pusvita, I., Wulandari, D., & Sihombing, S. O. (2025). ESG disclosure and firm valuation: Evidence from Indonesian manufacturing. Indonesian Journal of Accounting Research, 28(1), 89–106.
  28. Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2019). Essentials of Corporate Finance (10th ed.). McGraw-Hill Education.
  29. Salehi, M., & Rostami, V. (2019). The impact of fixed asset investment on firm performance: Evidence from Tehran Stock Exchange. Journal of Asian Business and Economic Studies, 26(3), 348–361. https://doi.org/10.1108/JABES-05-2019-0040
  30. Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (7th ed.). Wiley.
  31. Shikumo, D. H. S., Oluoch, O., & Wepukhulu, J. M. (2020). Effect of short-term debt on financial performance of listed firms in Nairobi Securities Exchange. arXiv preprint, arXiv:2011.03339.
  32. Warrent, K. (2019). Fixed asset investment and firm efficiency. International Journal of Business and Management Studies, 8(1), 45–52.
  33. Xu, Y., & Li, W. (2021). Capital structure, firm value and profitability: Empirical evidence from Chinese listed firms. Asia-Pacific Journal of Accounting & Economics, 28(1), 90–107.
  34. Yazdanfar, D., & Öhman, P. (2015). Debt and performance of small firms: Evidence from Swedish micro firms. The Journal of Risk Finance, 16(1), 102–118. https://doi.org/10.1108/JRF-06-2014-0085

Similar Articles

<< < 3 4 5 6 7 8 9 10 11 12 > >> 

You may also start an advanced similarity search for this article.