JAMBURA ECONOMIC EDUCATION JOURNAL

Volume 6 No 2 July 2024

E-ISSN: 2656-4378 P-ISSN: 2655-5689
Journal Homepage: https://ejurnal.ung.ac.id/index.php/jej/index,

The Effect of Sustainability Reporting Disclosure on Company Value

Moderated by Investment Opportunity Set

Dinda Kharisma Putri1), Astrini Aning Widoretno*2)

Universitas Pembangunan Nasional Veteran Jawa Timur1,2
Email : [email protected] *

ABSTRACT
This study aims to examine the influence of sustainability reporting, namely the
disclosure of economic, environmental, and social performance, on the value of a
company. The present investigation also explores the presence of a moderating variable,
specifically the investment opportunity set, that functions to moderate the association
between sustainability reporting disclosure and company value. Companies in the energy
sector that were listed on the Indonesia Stock Exchange in 2021–2022 served as the study
object. Quantitative approaches are employed in this study. The research sample was
determined using a purposive sampling methodology, which relied on secondary data.
This method resulted in a sample size of 82. Smartpls 3.0 is the program that processed
the data for this investigation. The results showed there is no impact on company value
from the disclosure of social, environmental, and economic performance in sustainability
reporting. While it doesn't impact the disclosure of environmental performance on
company value, the existence of an investment opportunity set can moderate the
relationship between the economic and social performance disclosure in sustainability
reporting.

Keywords: sustainability reporting, firm value, investment opportunity set

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INTRODUCTION
Disclosure of sustainability reporting certainly applies to all companies,
especially companies that have a direct relationship with natural resource
management. One company that has a relationship with natural resources is an
energy sector company. The energy industry can include oil and gas, electric
power, coal, nuclear, and renewable energy. In Indonesia, the condition of
energy sources can still be said to be abundant, but the change in consumption
without exploration certainly makes Indonesia closer to the energy crisis
(Directorate Ministry of Energy and Mineral Resources, 2020 October 22).
Energy sector companies are still an attractive market share for investors.
This can be seen from the signing of the MoU of several business actors (B to B)
in the energy sector during The B20 Summit conference will include the Signing
Agreement B20 Task Force, which will focus on Sustainability & Climate
Business Action in 2022. One of the cooperation signed in this side event is
between PT Pertamina and Saudi Aramco (Directorate General of Oil and Gas,
2022 January 12).
Figure 1. Average Energy Consumption

The graph above represents the intensity of the total quantity of energy
consumed by all of them from 2017 to 2022. in 2017 the total energy consumption
per capita was 2.95. In 2018 there was an increase of 3.27 and in 2019 there was
another increase to 3.52. However, in 2020 consumption decreased to 3.11 and in
2021 it increased slightly to 3.12. While energy consumption in 2022 increased quite
drastically to reach 4.04. It can be concluded that in 2021 towards 2022 there was a
fairly drastic increase in energy use, although in 2020 it had decreased.
Nonetheless, Indonesia's oil reserves will run out within the next nine years,
according to Minister of Energy and Mineral Resources Arifin Tafsir (2022),
unless new resources are discovered. Therefore, it is imperative that resource
sources be explored. Furthermore, there is growing urgency to cut greenhouse

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gas emissions, particularly carbon dioxide from the use of fossil fuels. According
to a report by the Ministry of National Development Planning/Bappenas, the
energy sector would overtake the forestry sector as Indonesia's top emitter of
greenhouse gases beginning in 2022. Up until 2030, potential emissions will keep
rising (Ministry of National Development Planning, 2023).
Many cases have surfaced related to social and environmental activities that
have now become a topic of discussion among shareholders. For example, the PT
Freeport mining case in Papua and the polluted Buyat Bay in Sulawesi. In addition,
the Lapindo Brantas Mudflow in Sidoarjo is still active and has become a national
disaster (Asyidiq, 2021). Indeed, the energy sector, one of which is mining, is an
organization that is very vulnerable to pollution (Krismelina et al., 2022).
As one of the organizations established with the aim of obtaining the
maximum possible profit, the company must also focus on other things in order to
maintain its existence (Ahmad & Setiorini, 2022). Therefore, companies must pay
attention to company value. Basically, companies are established to maximize
company value (Rinsman & Prasetyo, 2020). Value in a company is actually an
important point that must be considered by shareholders when investing (Meini &
Chotimah, 2022). Apart from maximizing company value, the company also has
another goal, namely going public so that it can realize an increase in the welfare of
shareholders (Sukmahayati & Suwaidi, 2021).
Companies that have gone public clearly have greater responsibilities both
related to financial and non-financial information. In accordance with the triple
bottom line concept, there are three aspects that need to be considered by the
company. The company is profit, people, and planet (Elkington, 1997). This
notion elucidates that the viability and expansion of a corporation hinge not
solely on generating profits, but also on the organisation's proactive measures to
address environmental concerns and promote social justice for both internal and
external communities (Suhartini & Megasyara, 2019).
This concept can be realized when the company is able to publish
sustainability reporting which includes important activities in the company,
namely economic, environmental, and social (Anna & Dwi R.T, 2019). According
to Yulistia M et al., (2023) sustainability reporting is the main focus because it is
able to transparently present the entity to shareholders. This can increase public
trust in an entity.

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Through sustainability reporting, performance improvements related to

norms, laws, codes of ethics, performance standards can be measured effectively
(Yulianty & Nugrahanti, 2020). The existence of obligations related to the issuance
of sustainability reporting regulated in POJK No. 51 of 2017 makes companies have
to inform social responsibility activities in the hope of increasing company value
(Cahyani & Suhartini, 2023). Studies examining the impact of disclosing
sustainability reports on corporate valuation have yielded inconsistent findings.
Research conducted by Febriyanti (2021) states that economic and environmental
performance affects firm value while social performance has no effect. Meanwhile,
research conducted by Anna & Dwi R.T, (2019) states that all three aspects affect
firm value.
The influence of sustainability reporting disclosure on company value is
contingent upon the company's investment opportunities in the capital market
(Fitriyah & Asyik, 2019). One concept that can be used is the investment
opportunity set. Investment opportunity set is a concept that is considered to
increase the value of a company (Hartawan et al., 2022). The investment
opportunity set is significant since it will impact how well the business performs
going forward. This is because the perspective of investors, managers, and
creditors towards the company can be influenced by the investment opportunity
set (Afsari et al., 2021).
Investment opportunity set also has a role in sustainability reporting
disclosure. The capital market's abundance of investment opportunities will
increase the impact of sustainability reporting disclosure on company value (Sari,
2022).
A study conducted by (Purwanti et al., 2019) examines the impact of sustainability
reporting on firm value, with investment opportunities as a moderating factor. The
research suggests that investment opportunities can moderate the relationship
between sustainability reporting and firm value. In contrast, a study by Fitriyah &
Asyik (2019) finds that investment opportunities do not moderate the relationship
between sustainability reporting and firm value.
Based on the background of the problems that have been described, the
authors want to conduct research on the disclosure of sustainability reports on
company value in companies in the energy sector that publish sustainability reports
in 2021-2022. This is used in accordance with Financial Services Authority
Regulations No. 51 of 2017, which stipulates that companies must publish

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sustainability reports in 2019. However, due to the COVID-19 pandemic, the

implementation was postponed until 2021. Therefore, the hypothesis that can be
used for this study is as follows:
H1 : Economic performance disclosure affects firm value
Stakeholder theory states that companies must be responsible for providing
reciprocity to stakeholders including shareholders, employees, customers,
creditors, communities, and interested parties (Freeman, 1984). Companies disclose
economic performance in sustainability reporting aims to provide information to
shareholders that the company has conveyed economic information owned by the
company in a transparent manner.
The economic information submitted by the company can be used by
shareholders and potential investors in making decisions and policies that have the
potential to affect the company's value. This information aligns with the findings of
a study conducted by Febriyanti (2021) and Anna & Dwi R.T (2019) which states
that economic performance affects company value.
H2 : Environmental performance disclosure affects firm value
Stakeholder theory states that companies must be responsible for providing
reciprocity to stakeholders including shareholders, employees, customers,
creditors, communities, and interested parties (Freeman, 1984). The disclosure of
environmental performance in sustainability reporting carried out by the company
shows that the corporation not only prioritizes profit development but also places
emphasis on the surrounding environment in which it operates.
The company must be able to contribute to the environment in order for it to
be maintained. Disclosure of good environmental performance will increase the
value of a company. This aligns with study that was undertaken by Febriyanti
(2021), Natalia & Soenarno (2021), and Daromes & Kawilarang (2020) that
disclosure of environmental performance in sustainability reporting affects
company value.
H3 : Social performance disclosure affects firm value
Stakeholder theory states that companies must be responsible for providing
reciprocity to stakeholders including shareholders, employees, customers,
creditors, communities, and interested parties (Freeman, 1984). One form of
corporate responsibility is by maximizing social performance.
The disclosure of social performance necessitates the company to maintain
positive relationships with the community, thereby enhancing the company's value

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through an enhanced corporate image. This is in line with the research done by
Febriyanti (2021), Natalia & Soenarno (2021), and Daromes & Kawilarang (2020).
H4 : Economic performance disclosure affects firm value with investment
opportunity set as a moderating variable.
Stakeholder theory states that companies must be responsible for providing
reciprocity to stakeholders which include shareholders, employees, customers,
creditors, communities, and interested parties (Freeman, 1984). One form of
corporate responsibility is to disclose economic performance. this will be even
better if it is supported by a high investment opportunity value.
Good investment opportunities can strengthen the relationship between
economic performance disclosure and firm value. This is because investors will also
look at investment opportunities before investing in the intended company. This is
in line with the research done by Purwanti et al., (2019).
H5 : Environmental performance disclosure affects firm value with investment
opportunity set as a moderating variable.
Stakeholder theory states that companies must be responsible for providing
reciprocity to stakeholders which include shareholders, employees, customers,
creditors, communities, and interested parties (Freeman, 1984). One form of
corporate responsibility is to disclose environmental performance. this will be even
better if it is supported by a high investment opportunity value.
Revealing the environmental performance in sustainability reporting plays a
crucial function in enhancing the value of a company. The encouragement from the
investment opportunity set makes disclosure of sustainability reporting play an
important role in increasing firm value. Rahma & Maryanti (2024) state that the
investment opportunity set can mitigate the influence of sustainability reports on
the value of a company, with the investment opportunity set acting as a moderating
factor.
H6 : Social performance disclosure affects firm value with investment
opportunity set as a moderating variable.
Stakeholder theory states that companies must be responsible for providing
reciprocity to stakeholders which include shareholders, employees, customers,
creditors, communities, and interested parties (Freeman, 1984). One form of
corporate responsibility is to disclose social performance. this will be even better if
it is supported by a high investment opportunity value.

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The presence of social responsibility is bound to influence the company's

social performance as revealed in sustainability reports and its correlation with firm
value. A positive response to social performance will reflect better ethical aspects
as well (Irene & Paramitha, 2022). The encouragement from IOS which is proxied
by the ratio of market value to book value equity will also have an influence on firm
value. This is in line with research conducted by Zubaidah & Novitasari (2023).
The hypothesis that has been described above is depicted in the
framework as below

Figure 2. Framework

Source: Researcher Documentation (2024)

RESEARCH METHOD
This study used quantitative methods. This study used companies in the
energy sector that are listed on the Indonesia Stock Exchange as the subject. The
study’s secondary data were obtained from the websites of every energy sector
company as well as the Indonesia Stock Exchange’s official website. Purposive
sampling is used in this study to analyze a population of 75 companies in energy
sector that were listed on the IDX during the 2021-2022.
Sugiyono (2022) stated that purposive side is a sampling technique with
several criteria. The criteria used for this sampling include: 1) Companies
operating in the energy industry that have been listed on the Indonesia Stock
Exchange (IDX) between 2021 and 2022; 2) Companies in the energy sector that
issue their annual report in 2021-2022 3) Companies in the energy sector that

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release comprehensive sustainability reports in 2021–2022. From these criteria, a

sample of 82 was obtained from 41 companies multiplied by 2 years of
observation.
The Partial Least Square (PLS) analytic approach using SmartPLS 3.0
software was the analysis technique and hypothesis testing used in this
investigation. PLS is a substitute for SEM (Structural Equation Model), which
evaluates several relationships that are challenging to assess all at once. The
analysis technique consists of outer model analysis and inner model analysis
(Hardisman, 2021).
Table 1. Operationalization and Measurement of Variable
Variable Indicator Measurement
Economic GRI 2021 𝑛
𝐸𝑐 =
𝑘
Performance
Source: (Febriyanti, 2021)
Discolusure
Environmental GRI 2021 𝑛
𝐸𝑛𝐷𝐼 =
𝑘
Performance
Source: (Febriyanti, 2021)
Disclosure
Social Performance GRI 2021 𝑛
𝑆𝑜 =
𝑘
Disclosure
Source: (Febriyanti, 2021)
Company Value Tobins’Q (𝐸𝑀𝑉 + 𝐷𝐸𝐵𝑇)
𝑄=
𝐸𝐵𝑉
Source: (Sholikhah & Khusnah, 2020)
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠ℎ𝑎𝑟𝑒𝑠 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔 𝑥 𝑐𝑙𝑜𝑠𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒
Investment IOS 𝑀𝑉𝐸/𝐵𝑉𝐸 =
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦
Opportunity Set Source: (Sari, 2022)
(IOS)
Source: Researchers Documentation (2024)
RESULTS AND DISCUSSION
Outer Model Analysis
Table 2. Convergent Validity
EC EN IOS SO TQ X1*Z X2*Z X3*Z
(X1) (X2) (Z) (X3) (Y)
Economic(X1) 1
Economic->IOS 0.839
Environmental (X2) 1
Environmental->IOS 0.753

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Investment Opportunity Set 1

(Z)
Company Value (Y) 1
Social (X3) 1
Social->IOS 0.911
Source: Secondary Data Processing Results (2024)
The economic variable has a value of 1, the economy to IOS has a value of
0.839. The environmental variable has a value of 1, the environment to IOS has a
value of 0.753. IOS has a value of 1, the company value has a value of 1. Social has
a value of 1 and social to IOS has a value of 0.911. The test results have been said to
be valid because each indicator already has an outer loadings value> 0.7
(Hardisman, 2021).
Table 3. Average Variance Extracted
EC EN IOS SO TQ X1*Z X2*Z X3*Z
(X1) (X2) (Z) (X3) (Y)
1
Economic (X1)
1
Environmental (X2)
1
Investment Opportunity Set
(Z)
1
Social (X3)
1
Company Value (Y)
1
Economic->IOS
1
Environmental->IOS
1
Social->IOS
Source: Secondary Data Processing Results (2024)
Based on the data processing that has been carried out and presented in the
table above, all variables x, y, and z have AVE value of 1. It shows that each
indicator used is in accordance with the requirements set and is declared valid. This
is because the results obtained show the AVE value> 0.5.
Table 4. Discriminant Validity
EC EN IOS SO TQ
(X1) (X2) (Z) (X3) (Y) X1*Z X2*Z X3*Z
- - - - -
Economic(X1) 1 0.825 0.161 0.901 0.186 0.082 0.094 0.009
- - -
Economic->IOS 0.082 0.085 0.654 -0.01 -0.46 1 0.933 0.945
- - - - -
Environmental (X2) 0.825 1 0.057 0.745 0.084 0.085 0.149 0.014
- - - - -
Environmental->IOS 0.094 0.149 0.522 0.017 0.364 0.933 1 0.87
Investment Opportunity Set
- - - - - -
(Z) 0.161 0.057 1 0.184 0.795 0.654 0.522 0.632

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- - - - -
Company Value(Y) 0.186 0.084 0.795 0.214 1 -0.46 0.364 0.307
- - -
Social(X3) 0.901 0.745 0.184 1 0.214 -0.01 0.017 0.005
- - - -
Social->IOS 0.009 0.014 0.632 0.005 0.307 0.945 0.87 1
Source: Secondary Data Processing Results (2024)
Discriminant validity measurements are declared valid because the results of
cross loading have exceeded 0.7, which is worth 1 for each variable, namely the
independent variable, dependent variable, and moderating variable.
Table 5. Composite Reliability
Cronbach's Composite
Alpha Reliability
Economic (X1) 1 1
Environmental (X2) 1 1
Investment Opportunity Set (Z) 1 1
Social (X3) 1 1
Company Value (Y) 1 1
Economic->IOS 1 1
Environmental->IOS 1 1
Social->IOS 1 1
Source: Secondary Data Processing Results (2024)
The table above shows that the measurement can be declared valid. This is
because each construct has a composite reliability value and Cronbach's alpha of 1,
which means >0.7. Hence, this test has demonstrated that the processed data is
dependable since the independent variable, dependent variable, and moderating
variable have fulfilled the necessary criteria.
Inner Model Analysis
Table 6. R-Square
Dependent R Square
Variable R Square Adjusted
Company Value
(Y) 0.856 0.843
Source: Secondary Data Processing Results (2024)
Testing the R-square value shows a number of 0.856 where these results mean
that this test produces a very strong influence. Based on the value in R-Square, the
relationship between variables can be considered strong if it has a value ≥0.75. The
relationship between variables can be declared a moderate model if it has an R-

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Square value ≥0.50-0.75. The relationship between variables can be declared a weak
model if it has an R-Square value ≥0.25-0.50.
Table 7. Hypothesis Results
T P
Statistics Values
Economic -> Company Value 1.686 0.092
Environmental -> Company Value 0.309 0.758
Social -> Company Value 1.268 0.206
Economic-> IOS -> Company Value 2.919 0.004
Environmental -> IOS -> Company
Value 0.128 0.898
Social -> IOS -> Company Value 2.982 0.003
Source: Processed Data (2024)
Based on the table above, the following are the results of the research
hypothesis test. 1) Firm value is unaffected by the disclosure of economic
performance. The test results show that the t-statistics are 1.686 and the p values are
0.092 so that the hypothesis is rejected. 2) Firm value is unaffected by the disclosure
of environmental performance. The test results show that the t-statistics are 0.309
and p values are 0.758 so that the hypothesis is rejected. 3) Firm value is unaffected
by the disclosure of social performance. The test results show that the t-statistics
1.268 and p values 0.206 so that the hypothesis is rejected. 4) Economic performance
disclosure has an influence on firm value moderated by investment opportunity
set. The test results show that the t-statistics 2.919 and p values 0.004 so that the
hypothesis is accepted. 5) Environmental performance disclosure has no influence
on firm value moderated by investment opportunity set. The test results show that
the t-statistics are 0.128 and p values are 0.898 so that the hypothesis is rejected. 6)
Social performance disclosure has an influence on firm value moderated by
investment opportunity set. The test results show that t-statistics 2.982 and p values
0.003 so that the hypothesis is accepted.

Discussion

The Impact of Sustainability Reporting's Economic Performance Disclosure on

Firm Value.
The results of the hypothesis testing indicate that there is no relationship
between business value and the disclosure of economic performance in
sustainability reporting. This proves that companies that have disclosed economic

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performance in accordance with the GRI standard in 2021 cannot be a benchmark

for potential investors in investing in these companies. Stakeholder theory cannot
make the disclosure of economic performance in sustainability reporting will affect
company value. This means that stakeholder theory is unable to increase firm value
when calculated using the Tobin's Q formula. The disclosure of economic
performance only makes the public and stakeholders able to obtain information
transparently but still cannot increase company value.
According to the hypothesis's conclusion, business value is unaffected by
the disclosure of economic performance in sustainability reporting, so H1 is
rejected. The findings of this investigation are consistent with studies carried by
Pratama et al., (2020) and Natalia & Soenarno (2021) which states that the disclosure
of economic performance in sustainability reporting has no effect on firm value.
The Impact of Sustainability Reporting's Environmental Performance
Disclosure on Firm Value
The results of the hypothesis testing indicate that there is no relationship
between firm value and the disclosure of environmental performance in
sustainability reporting. Firm value is unaffected by increased environmental
performance disclosure. In addition, the obligation to publish sustainability
reporting in accordance with POJK No. 51 of 2017 also cannot affect the high value
of the company.
Company value cannot be influenced by the stakeholder theory, which
claims that companies must reciprocate to stakeholders by disclosing their
environmental performance in a transparent manner. This only shows the
company's commitment to protecting the environment but cannot affect the
company's value in the calculation.
The company's concern activities related to the environment can make the
community's assessment better because the company has cared about the
environment, the waste produced, and others but still does not affect the company's
value. This hypothesis' outcome indicates that firm value is unaffected by the
disclosure of environmental performance in sustainability reporting, so H2 is
rejected. This is in line with research conducted by Rinsman & Prasetyo (2020)
which shows that environmental performance has no effect on firm value.
The Impact of Sustainability Reporting's Social Performance Disclosure on Firm
Value The results of the hypothesis testing indicate that there is no relationship
between company value and the disclosure of social performance in sustainability

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reporting. Activities that include social activities both related to society, products,
work safety which are essentially carried out to provide reciprocity to stakeholders
in accordance with stakeholder theory in reality also have no effect on company
value. This implies that a corporation's good public image doesn't always turn into
a high determined worth for the company. This implies that a corporation's good
public image doesn't always turn into a high determined worth for the company.
This hypothesis conclusion indicates that H3 is rejected because social
performance disclosure in sustainability reporting has no impact on company
value. The study's findings, which indicate that social performance disclosure in
sustainability reporting has no impact on company value, are consistent with
earlier research by (Febriyanti, 2021).
The Impact of Sustainability Reporting's Economic Performance Disclosure on
Firm Value and Investment Opportunity Set as a Moderating Effect
Conclusions of the hypothesis testing indicate that the company's value is
impacted by the economic performance disclosure in sustainability reporting,
which is influenced by the investment opportunity set. This proves that companies
that have disclosed economic performance in accordance with the Global Reporting
Initiative 2021 standard when moderated by the investment opportunity set can be
a benchmark for potential investors in investing in the company. The existence of
stakeholder theory which states that companies must be responsible for providing
reciprocity to stakeholders as evidenced by transparency regarding disclosure of
economic performance and supported by large investment opportunities is proven
to affect company value. Consequently, it can be assumed that when a company
also has an excellent opportunity for investment value, investors will pay attention
to the disclosure of economic performance in sustainability reporting.
This can affect the company value in the calculation. Conclusion from this
hypothesis means that the disclosure of economic performance in sustainability
reporting has an effect on firm value when moderated by investment opportunity
set so that H4 is accepted. This is consistent with the research of Purwanti et al.,
(2019) which found that, when investment opportunity set is factored
consideration, the disclosure of economic performance in sustainability reporting
has an impact on firm value.
The Impact of Sustainability Reporting's Environmental Performance
Disclosure on Firm Value and Investment Opportunity Set as a Moderating
Effect

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The results of the hypothesis testing indicate that the disclosure of

environmental performance in sustainability reporting, when moderated by the
investment opportunity set, does not impact firm value. This proves that companies
that have disclosed environmental performance in accordance with the GRI 2021
standard when moderated by the investment opportunity set cannot be a benchmark
for potential investors in investing in the company. The existence of stakeholder
theory which states that companies must be responsible for providing reciprocity
to stakeholders cannot have an influence on firm value even though it has been
moderated by the investment opportunity set.
It suggests that the public's acceptance of environmental performance
disclosure in sustainability reporting is limited to the performance that has been
carried out; it has no bearing on the company's value as determined by the
calculation. A high investment opportunity set cannot encourage environmental
performance disclosure to play an important role in increasing firm value. The
conclusion of this hypothesis means that environmental performance disclosure in
sustainability reporting has no effect on firm value when moderated by investment
opportunity set so that H5 is rejected. The results of this study are in line with research
conducted by Hartawan et al., (2022).
The Impact of Sustainability Reporting's Social Performance Disclosure on Firm
Value and Investment Opportunity Set as a Moderating Effect
Results of the hypothesis testing indicate that the company value is
impacted by the social performance disclosure in sustainability reporting, which is
influenced by the investment opportunity set. The existence of stakeholder theory
can have an influence on company value. This happens when social performance
disclosure is moderated by investment opportunity set. A company's reputation in the
community will be positively impacted by its ability to fulfill its social duty.
This could impact the company's value, especially when the company holds
a high investment opportunity value. Consequently, investors are likely to take into
account the disclosure of social performance in sustainability reporting,
particularly when the company possesses a high investment opportunity set value.
Therefore, the acceptance of hypothesis H6 suggests that the disclosure of social
performance in sustainability reporting influences firm value when moderated by
the investment opportunity set. As the investment opportunity set can moderate
the association between the disclosure of social performance in sustainability
reporting and firm value, these findings align with previous research by Zubaidah

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& Novitasari (2023).

CONCLUSION
The study conducted on energy sector companies listed on the Indonesian
Stock Exchange between 2021 and 2022 yielded results that suggest there is no
significant influence on company value from the disclosure of social,
environmental, and economic performance in sustainability reporting. It is
proposed, therefore, that one of the moderating variables, the investment
opportunity set may have an impact on the relation between company value and
the sustainability reporting's disclosure of social and economic performance. The
relationship between the disclosure of environmental performance in sustainability
reporting and business value cannot be moderated by the investment opportunity
set.
Energy sector companies are expected to be able to publish sustainability
reporting in accordance with the obligations according to Financial Services
Authority Regulations No.51 of 2017. Companies that have published sustainability
reporting are expected to continue to improve their disclosure. Future research is
expected to use other methods in order to perfect existing research and can expand
the research object and observation time span so that the research results can be
even better.

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