The Influence of Sustainability Reporting, Profitability, and Financial Performance on Company Value: A Study of Islamic Commercial Banks in Indonesia 2022-2024

Abstract

The rapid growth dynamics of Indonesia's Sharia Commercial Bank (BUS) Sector, supported by major consolidation and regulatory emphasis on ESG practices, makes achieving Firm Value fundamental for attracting investors. This study is crucial to empirically analyze the extent to which non-financial (Sustainability Reporting measured by SRDI, X1) and traditional financial influence (Profitability measured by ROA, X2; Financial Performance measured by CAR, X3) influence Firm Value (measured by EVA, Y) across all BUS in Indonesia during 2022-2024. Employing a quantitative approach and Panel Data Regression analysis (Random Effect Model), the results show contrasting findings. Partially, only Profitability (ROA) is proven to have a positive and significant influence on Firm Value (Prob. 0.0330 < 0.05), affirming that the strongest response from the sharia capital market currently focuses on core operational profit metrics. In contrast, Sustainability Reporting (Prob. 0.5857 > 0.05) and Financial Performance (CAR) (Prob. 0.2542 > 0.05) have no significant influence. Simultaneously, the three independent variables collectively are also not significantly influential (F-statistic Prob. 0.257791 > 0.05). This study concludes that BUS Firm Value is highly vulnerable to factors outside the model (R2 only 0.141284), and despite increasing ESG demands, sharia investors' primary valuation focus remains on core profitability metrics.