CSR, Governance, and Green Innovation: Drivers of Energy Firm Value Through Profitability

Abstract

This investigation explores the relationship between Corporate Social Responsibility (CSR), Good Corporate Governance (GCG), and Green Innovation on firm value among energy companies traded on the Indonesia Stock Exchange during 2020-2023, with profitability functioning as an intermediary variable. The research framework incorporates CSR disclosure indices, GCG composite ratings, and Green Innovation assessed through environmental technology research and development expenditure intensity. Tobin's Q ratio serves as the proxy for firm value, while Return on Assets (ROA) represents the profitability mediator. Purposive sampling methodology was applied for sample selection, with analytical procedures conducted using WarpPLS version 7.0. Findings reveal that CSR and Green Innovation substantially boost firm value, while GCG demonstrates no statistically significant influence. Additionally, profitability effectively mediates the connections between these strategic factors and firm value.