Exploring Financial and ESG Drivers of Firm Value: The Moderating Effect of Dividend Policy in the Energy Sector
DOI:
https://doi.org/10.38035/dijefa.v6i5.5445Keywords:
sustainability, profitability, capital structure, dividend policy, firm valueAbstract
The transition toward sustainable energy practices has created increasing pressure on companies to align financial performance with environmental, social, and governance (ESG) objectives. This study aims to examine the effects of sustainability, profitability, and capital structure on firm value, while analyzing the moderating role of dividend policy among energy sector companies listed on the Indonesia Stock Exchange (IDX). Sustainability is assessed using ESG Score, profitability by Return on Assets (ROA), capital structure by Debt to Equity Ratio (DER), and dividend policy by Dividend Payout Ratio (DPR). A quantitative method is employed, utilizing panel data from 28 firms selected through purposive sampling over the 2017–2023 period. The findings reveal that profitability and capital structure significantly influence firm value, while sustainability shows no significant effect. Furthermore, dividend policy negatively moderates the relationship between profitability and firm value, but does not moderate the effect of sustainability or capital structure. The study concludes that financial metrics remain dominant drivers of firm value in the energy sector, while ESG initiatives may require longer-term adoption to show measurable impact. These insights offer practical implications for corporate managers and investors in aligning strategic financial decisions with sustainability goals.
References
Ariyanti, E., Nasution, F. N., & Erwin, K. (2024). The Influence of Dividend Policy and Company Size on Company Value with Profitability as a Moderating Variable in Listed Energy Sector Companies on the Indonesia Stock Exchange. https://ijcsrr.org/wp-content/uploads/2024/04/08-0304-2024.pdf
Brigham, E. F., & Ehrhardt, M. C. (2017). Financial Management - Theory and Practice, 15e. In Cengage Learning (15E ed.). Cengage.
Brigham, E. F., & Houston, J. F. (2018). Dasar-Dasar Manajemen Keuangan (Edisi 14 B). Salemba Empat.
Cahyawati, A. N., & Suryaningsum, S. (2024). The Effect of Corporate Social Responsibility (CSR), Capital Structure, and Dividend Policy on Company Value in Energy Sector Companies. COUNT, 2(3). https://doi.org/10.61677/count.v2i3.356
Dagunduro, M. E., FALANA, G. A., AJAYI, J. O., & BOLUWAJI, O. D. (2024). Non-financial disclosure and firm performance: Insights from listed consumer goods manufacturing companies in Nigeria. Economy, Business and Development: An International Journal, 5(1), 14–27. https://doi.org/10.47063/ebd.00015
Georgakopoulos, G., Toudas, K., Poutos, E. I., & Kounadeas, T. (2022). Capital structure, corporate governance, equity ownership and their impact on firms’ profitability and effectiveness in the energy sector. Energies, 15(10), 3625. https://doi.org/10.3390/en15103625
Grabińska, B., Kędzior, M., Kędzior, D., & Grabiński, K. (2021). The impact of corporate governance on the capital structure of companies from the energy industry: The case of Poland. Energies, 14(21), 7412. https://doi.org/10.3390/en14217412
Gujarati, D. N., & Porter, D. C. (2012). Dasar-dasar ekonometrika (R. C. Mangunsong (ed.); Edisi 5). Salemba Empat.
Hendra, I. Y., & Absah, Y. (2022). The Effect of Sustainability Reporting, Good Corporate Governance, and Dividend Policy on Firm Value with Financial Performance as an Intervening Variable in Mining Companies. International Journal of Research and Review, 9(7). https://doi.org/10.52403/IJRR.20220708
Liong, H., & Su’un, M. (2023). The Influence of Growth Potential, Capital Structure and Profitability on Dividend Policy and Firm Value in Manufacturing Companies Listed on the Indonesia Stock Exchange. https://pdfs.semanticscholar.org/a72e/33433f2597aac0930b8edd28863f37f6112f.pdf
Lumentut, F. G., & Mangantar, M. (2019). Pengaruh Likuiditas, Profitabilitas, Solvabilitas, Dan Aktivitas Terhadap Nilai Perusahaan Mannufaktur Yang Terdaftar Di Indeks Kompas100 Periode 2012-2016. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 7(3), 2601–2610. https://doi.org/https://doi.org/10.35794/emba.v7i3.23643
Naceur, S. B., & Goaied, M. (2002). The relationship between dividend policy, financial structure, profitability and firm value. Applied Financial Economics, 12(12), 843–849. https://doi.org/10.1080/09603100110049457
Pangestuti, D., Muktiyanto, A., Geraldina, I., & Darmawan, D. (2022). Role of Profitability, Business Risk, and Intellectual Capital in Increasing Firm Value. Journal of Indonesian Economy and Business, 37(3), 311–338. https://doi.org/10.22146/jieb.v37i3.3564
Rasyid, C. A. M. P., Indriani, E., & Hudaya, R. (2022). PENGARUH CORPORATE SOCIAL RESPONSIBILITY DAN STRUKTUR MODAL TERHADAP NILAI PERUSAHAAN DENGAN UKURAN PERUSAHAAN DAN PROFITABILITAS SEBAGAI VARIABEL MODERASI PADA PERUSAHAAN PERTAMBANGAN. Jurnal Aplikasi Akuntansi, 7(1), 135–156. https://doi.org/10.29303/jaa.v7i1.146
Rehman, O. U. (2016). Impact of capital structure and dividend policy on firm value. https://core.ac.uk/download/pdf/234695399.pdf
Renaldo, N., Junaedi, A. T., & Suhardjo, S. (2025). A Qualitative Study on the Role of Big Data Technology in Influencing Capital Structure, Profitability, Dividend Policy, Firm Performance, Firm Value, and Sustainability. Luxury, 3(1). https://doi.org/10.61230/luxury.v3i1.120
Risman, A. (2023). Kurs Mata Uang dan Nilai Perusahaan. CV. Pena Persada.
Sevnia, R., & Susi Dwi Mulyani. (2023). PENGARUH PENGUNGKAPAN SUSTAINABILITY REPORT, KINERJA LINGKUNGAN, DAN STRUKTUR MODAL TERHADAP NILAI PERUSAHAAN DENGAN UKURAN PERUSAHAAN SEBAGAI VARIABEL MODERASI. Jurnal Ekonomi Trisakti, 3(2), 3813–3822. https://doi.org/10.25105/jet.v3i2.18195
Sudana, I. M. (2017). Manajemen Keuangan Perusahaan : Teori dan Praktik (3rd ed.). Erlangga.
Wardhani, W. K., Titisari, K. H., & Suhendro, S. (2021). Pengaruh Profitabilitas, Struktur Modal, Ukuran Perusahaan, Dan Good Corporate Governance terhadap Nilai Perusahaan. Ekonomis: Journal of Economics and Business, 5(1), 37. https://doi.org/10.33087/ekonomis.v5i1.264
Wieczorek-Kosmala, M., Błach, J., & Gorzeń-Mitka, I. (2021). Does capital structure drive profitability in the energy sector? Energies, 14(16), 4803. https://doi.org/10.3390/en14164803
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Imam Sartono, Asep Risman
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA).
