The Role of Financial Performance as a Mediating Variable in the Effect of Environmental Disclosure on Stock Performance in Mining and Energy Sector Companies Listed on the Indonesia Stock Exchange for the 2021–2024 Period

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Researchers can note the methodological use of Baron & Kenny mediation in an emerging market ESG context and the marginal significance of environmental disclosure on financial performance.

🏢実務担当者:Corporate sustainability teams in emerging markets can use this to understand that environmental disclosure may not yet directly impact stock returns, but it can affect financial performance.

🏛政策担当者:Policymakers in emerging economies should consider investor education alongside disclosure mandates to improve market integration of ESG information.

This study aims to analyze the effect of environmental disclosure on financial performance and stock performance, as well as to examine the role of financial performance as a mediating variable in the relationship between environmental disclosure and stock performance in mining and energy sector companies listed on the Indonesia Stock Exchange (IDX) for the 2021–2024 period. The study uses secondary data from annual reports, financial statements, and sustainability reports of 29 sample companies selected through purposive sampling, yielding 116 total observations. Environmental disclosure is measured using the Environmental Disclosure Index (EDI) based on 34 indicators from GRI 4 Environmental Category, financial performance is proxied by Return on Assets (ROA), and stock performance is measured using annual stock return. The analysis employs simple linear regression and mediation testing using the Baron & Kenny method through SPSS 26. The results show that: (1) environmental disclosure has a significant effect on financial performance, with R = 0.192, R² = 0.037 (3.7%), and sig. = 0.067; (2) financial performance has no significant effect on stock performance, with a regression coefficient of 0.722 and sig. = 0.239; (3) environmental disclosure has no significant effect on stock performance, with a regression coefficient of −0.292 and sig. = 0.346; and (4) financial performance is unable to mediate the effect of environmental disclosure on stock performance, as all mediation paths are statistically insignificant. These findings indicate that the Indonesian capital market has not yet optimally responded to environmental information in investment valuation for the mining and energy sectors, which may be attributed to the low level of investor ESG literacy, the dominance of external factors such as commodity price volatility and government policy, and the varying quality of environmental disclosures

• semanticscholar https://doi.org/10.36985/h8agx749first seen 2026-05-15 19:00:59 · last seen 2026-06-03 05:18:40