The Effect of Sustainable Business Practices on Company Value in Indonesia Stock Exchange Sri-Kehati Index Companies

The purpose of this study was to examine the effect of economic, environmental, social, and governance performance on firm value moderated by PROPER and COVID-19 in listed companies included in the SRI-KEHATI index for 10 consecutive years. The type of research used is quantitative research using hypothesis testing of the effect of the independent variable on the dependent variable with moderation of certain variables. The research variable includes the dependent variable, firm value, independent variable, which is economic, environmental, social, and governance performance (EESG), as well as moderating variables, PROPER and COVID-19. Purposive sampling is used through certain criteria, contain public companies included in the SRI-KEHATI index group for 10 consecutive years This results in a total 130 samples (13 companies during the 2012—2021) The data analysis used are descriptive statitisical and multiple regrssion. The results of this study are (1) economic, environmental, and governance performance have a significant positive effect on firm value. However, social performance does not have a significant positive effect on firm value; (2) PROPER is proven to moderate the positive effect of governance performance on firm value, but not the effect of economic, environmental, or social performance; (3) COVID-19 is not moderate the positive effect of economic, environmental, social, and governance performance on firm value The implication of this study are (1) the implementation of sustainable business practices in economic, environmental, social and governance aspects is an important thing that must be implemented by companies in order to create a sustainable business; (2) PROPER can strengthen environmental management governance performance; (3) The dimensions and indicators used can serve as a reference for the company in sustainable business practices and as a basis for investors to make investment decisions; and (4) To be the basis of reference for the company, investors, and regulators.