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When Social Responsibility Meets Profitability: Determinants of Firm Value in Indonesian Mining Companies Listed on the Indonesia Stock Exchange

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This study examines the effect of Corporate Social Responsibility (CSR) disclosure and profitability ratios on firm value among mining sector companies listed on the Indonesia Stock Exchange (IDX). CSR disclosure was measured using an index based on the Global Reporting Initiative (GRI) Standards 2016, while profitability was proxied by four indicators: Return on Equity (ROE), Return on Asset (ROA), Gross Profit Margin (GPM), and Net Profit Margin (NPM). Firm value was measured using Price Book Value (PBV). The sample was selected through purposive sampling from a population of 46 mining companies listed on the IDX during 2020–2024, resulting in five companies that met all the criteria and a total of 25 observations. Data were analyzed using multiple linear regression with SPSS following classical assumption testing. The results show that CSR disclosure has a positive and significant effect on firm value. Among the four profitability indicators, only ROE has a significant positive effect on firm value, while ROA, GPM, and NPM have no significant effect. Simultaneously, CSR and profitability ratios significantly affect firm value, with a coefficient of determination of 80.2%. These findings are relevant amid the recent slowdown in Indonesia’s mining sector and the ongoing transition of sustainability reporting regulation toward standards aligned with the International Sustainability Standards Board (ISSB).

Financial Ratios and Corporate Governance as Determinants of Financial Distress Probability: Evidence from Indonesian Manufacturing Firms

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This study aims to examine the effects of financial ratios and corporate governance on the probability of financial distress among manufacturing companies listed on the Indonesia Stock Exchange during the 2020–2025 period. Financial ratios are represented by profitability, liquidity, leverage, and activity ratios, while corporate governance is proxied by the proportion of independent commissioners. This study employed a quantitative research approach using secondary data obtained from the annual financial statements of manufacturing companies listed on the Indonesia Stock Exchange. The sample consisted of 900 firm-year observations selected through purposive sampling. Data were analyzed using binary logistic regression to estimate the probability of financial distress. Prior to hypothesis testing, the model was evaluated through multicollinearity testing, overall model fit, Hosmer–Lemeshow goodness-of-fit test, classification accuracy, receiver operating characteristic (ROC) analysis, and the Nagelkerke R-square coefficient. The results reveal that profitability, measured by Return on Assets (ROA), and activity ratio, measured by Total Asset Turnover (TATO), have a significant negative effect on the probability of financial distress, indicating that firms with higher profitability and more efficient asset utilization are less likely to experience financial distress. Conversely, leverage, measured by the Debt-to-Equity Ratio (DER), has a significant positive effect, suggesting that greater reliance on debt financing increases the likelihood of financial distress. In contrast, liquidity, measured by the Current Ratio (CR), and corporate governance, proxied by the proportion of independent commissioners, do not have a statistically significant effect on financial distress. The findings highlight that profitability, leverage, and asset utilization are key determinants of financial distress, whereas short-term liquidity and board independence are insufficient to explain financial distress among Indonesian manufacturing firms. These findings provide valuable insights for corporate managers, investors, creditors, and policymakers in identifying early warning indicators of financial distress and strengthening corporate financial sustainability.

Impact of Macroeconomic Indicators on The Indonesia Stock Exchange (IDX) Composite Index Performance

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This study examines the impact of macroeconomic indicators on the performance of the Indonesia Stock Exchange (IDX) Composite Index from 2014 to 2023, focusing on four key variables: interest rates, inflation, money supply (M2), and Gross Domestic Product (GDP). Using a Vector Autoregressive (VAR) model, the research investigates the short-term dynamics between these variables. The findings show that in the VAR estimation, only the lag 1 M2 value has a statistically significant coefficient. However, the Impulse Response Function (IRF) analysis reveals that shocks to the Bank Indonesia rate, inflation, money supply, and GDP initially cause significant fluctuations in the Jakarta Stock Exchange price index, but these effects are short-lived, with the index stabilizing around zero after several periods. These results provide valuable insights for policymakers and investors, emphasizing the importance of understanding macroeconomic conditions for making informed stock market decisions.