PENGARUH ENVIRONMENTAL SOCIAL GOVERNANCE (ESG), CASH HOLDING, DAN RETENTION RATIO TERHADAP NILAI PERUSAHAAN

Jesica  Putri Anugrah; Dini Widyawati

Jesica Putri Anugrah Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya
Dini Widyawati Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya

Keywords: environmental social governance (ESG), cash holding (CH), retention ratio (RR), and firm value

Abstract

This research aims to determine the effect of Environmental Social Governance (ESG), Cash Holding (CH), and Retention Ratio (RR) on the firm value of Mining companies listed on the Indonesia Stock Exchange (IDX) during 2021-2023. The firm value was measured by Price to Book Value (PBV). The research applies quantitatively. Furthermore, the population consists of Mining companies listed on the Indonesia Stock Exchange (IDX) during 2021-2023. The data collection technique used purposive sampling with 20 companies as the sample. The data analyze technique used multiple linear regression with SPSS 26. The research shows that (a) ESG has a positive effect on firm value. The better the ESG disclosure on a company is, the higher the firm value will be. It happens as the firm value rises since the brand image of the company in front of investors is good, (b) Cash Holding does not affect firm value. This indicates that higher or lower the company cash level does not affect investors and creditors trust, and (c) Retention Ratio has a positive effect on firm value. In other words, the better the company’s profit share is, the more interesting the investors’ intention will be.