The Effect of Eco-Efficiency and Eco-Innovation Disclosure on Firm Value: Does Profitability Matter?

: This research aims to test whether profitability strengthens the influence of eco innovation and eco efficiency disclosures on the value of mining sector companies listed on the Indonesia Stock Exchange. Research data was obtained from annual reports and sustainability reports from the Indonesian Stock Exchange website and company websites. The sample used was 39 companies that met the criteria and were listed on the Indonesia Stock Exchange in 2018 - 2021. The sample data calculation technique used the cross sectional method via the eviews application. Hypothesis testing in this research uses multiple linear regression analysis methods. The results of this research show that eco innovation and eco efficiency have a positive effect on firm value, and profitability has an effect as a moderating predictor variable in the relationship between eco innovation and eco efficiency on firm value. This study differentiates samples based on more diverse dependent variables and involves moderating variables as amplifiers. Previous research did not use the two dependent variables, namely eco innovation and eco efficiency simultaneously so that the value of the company could not be determined as a whole whether the implementation of both had an effect on the value of the company. Then the researchers found that investors considered the application of eco innovation and eco efficiency to the value of mining sector companies.

prices.This research reviews that increasing green innovation from the 25th to 75th percentile is associated with a 17.62% reduction in the risk of stock price crashes.The results state that companies implementing eco-innovation attract more institutional investors and equity analysts to follow and disclose more information which leads to a lower risk of stock price falls.
Apart from implementing Eco Innovation, the company also carries out Eco Efficiency to reduce large costs when carrying out this innovation.Nosakhare Peter (2016) revealed that there are processes in environmental restoration that cause the emergence of eco-efficiency.The concept of eco-efficiency is the middle point between the economy and the environment.The existence of various policies in the environmental sector has led to the development of a concept that aims to find solutions to fulfill business goals and resolve environmental problems, called eco-efficiency.Eco-efficiency is an abbreviation of "ecological economic efficiency", namely a construction that shows increased productivity and simultaneously reduces costs by improving environmental performance (Meutia et al., 2019).
Implementing eco-efficiency and Eco Innovation is an effort to increase firm value.Eco efficiency will function as a management controller to reduce the company's impact on the environment and simultaneously create more value for shareholders (Dewi & Rahmianingsih, 2020).This statement is in line with Panggau &Septiani (2017) which shows the results that companies that implement eco-efficiency as an environmental strategy will increase firm value.Apart from that, research conducted by Satrio (2020) showed that eco-efficiency has a positive effect on firm value.High share prices will increase firm value and investor prosperity will be higher.Apart from eco-efficiency, firm value is also influenced by profitability and eco-innovation.This is proven by research conducted by Rasyid (2015), showing that profitability has a significant effect on firm value.

II. LITERATURE REVIEW A. Legitimacy Theory
Legitimacy theory is a theory of the two-way relationship between a company and the environment which underlies an entity's initiative to voluntarily report or present information regarding the environmental and social issues applied (Anggraeni, 2015).The application of legitimacy theory provides the basis that companies must comply with the norms that apply in the community where the company is located so that company operations can run smoothly without any conflict with the surrounding community (Ekaputri et al., 2018).

B. Eco Innovation
Eco-innovation is defined as a form of a company's ability to innovate related products and services without causing impact or damage to the environment.If the company is able to improve environmental conditions in operational activities, this step can increase share prices and firm value (Aviyanti and Isbanah, 2019).Eco Innovation also influences the decisions of institutional investors and equity analysts under the influence of clients through SRI (Socially Responsible Investment) investment strategies which pay more attention to eco-innovation companies and help limit information asymmetry and reduce the risk of falling stock prices (Zaman et al, 2021).

C. Eco Effeciency
Eco efficiency is a concept that encourages companies to develop a level of environmental performance or at least equal to economic performance.The application of eco efficiency can reduce environmental impacts and excessive resource consumption (Putri and Sari, 2019).Che Ahmad and Osazawa (2015) explained that eco-efficiency is a business strategy that leads to better firm value.The results of this research show that eco-efficiency has a positive effect on firm value.Research on eco-efficiency uses measurements in the form of ISO 14001 which can help companies carry out operations more effectively because they save working time and costs.So it can be concluded that companies that implement eco-efficiency can increase profitability and firm value.

D. Firm Value
Firm value is the present value of expected future income and reflects the impact of decisions taken by financial managers regarding the company's share price (Kohar & Akramunnas, 2017).Firm value is an important concept for investors because it can be an indicator for the market to assess the company as a whole which is reflected in the share price.If the firm value is high, it will increase investors' confidence in the company because investors' assessment of the company's prospects in the future can be seen

E. Profitability
Profitability is one of the important parameters that investors pay attention to when assessing the performance of a company because it can show the company's ability to earn profits and the level of return that investors will receive (Kusumandari, 2016).Profitability is one of the factors that can influence firm value besides eco-efficiency (Osazuwa & Che-Ahmad, 2016).Profitability is the net result of a series of policies and decisions that can be determined using benchmarks, namely financial ratios as one of the analyzes in analyzing the financial condition and level of profitability of a company (Brigham & Houston, 2009).

III. RESEARCH METHODOLOGY
Researchers want to know the effect of the independent variables, namely eco innovation and eco efficiency, on the dependent variable, namely the value of mining companies listed on the Indonesia Stock Exchange (BEI).Apart from that, researchers also added calculations of moderating variables which have a strong dependent (strengthening or weakening) influence on the relationship between the independent variable and the dependent variable.The moderating variable in this research uses Profitability.To further strengthen the data processing results obtained.A control variable is a variable that is controlled so that the influence of the independent variable on the dependent variable is not influenced by external factors that are not examined.The function of the control variable is to prevent biased calculation results.The data source in this research is secondary data, namely data that refers to information collected from existing sources.This type of research is quantitative research and data processing using the E-Views application.
The data obtained for processing research object data is mining sector companies listed on the Indonesian Stock Exchange (IDX).Data on mining sector companies that meet the research sample criteria are 142 companies with the research period 2018 -2021.

A. Operational Research Variable
The independent and dependent variables in this study are as follows: Variabel Indikator scale source Firm Value (Y) The Interpretation Score assessment (Tobin, 1969) is as follows: -Tobin's q < 1 -Tobin's q = 1 -Tobin's q > 1

The dummy variable
In this research, it was measured using three indicators, namely: the production process uses new technology to reduce energy, water and waste, the product uses a small amount of non-hazardous or environmentally friendly materials, and the composition used in the production process can be recycled.The values for each indicator are 0 and 1.A value of 0 is given if the company does not disclose one of the items from the indicator and a value of 1 is given if the company discloses an item from the indicator.After that, the values for each indicator are added up.

The dummy variable
The dummy variable for companies that have ISO 14001 certification is given a value of 1, while companies that do not have ISO 14001 certification are given a value of 0.

B. Analysis Method
The analytical method used in this research is the multiple linear regression analysis method; The data obtained will be processed and analyzed so that the data can be utilized.This data can be used as a basis for decision making.The purpose of this analysis method is to provide interpretation and interest.The data collected in this research will be analyzed using quantitative analysis methods using the Eviews program.So that the regression model for this research is consistent and unbiased, several classic assumption tests were carried out, namely the normality test, multicollinearity test and heteroscedasticity test.The analysis model in this research uses multiple linear regression with the equation: The analytical method used in this research is multiple linear regression analysis method; The data obtained will be processed and analyzed so that the data can be utilized.The data can be used as a basis for decision making.The purpose of this analytical method is to provide interpretation and interest.The data that has been collected in this study will be analyzed using quantitative analysis methods using the Eviews program.In order for the regression model of this study to be consistent and unbiased, several classical assumption tests were carried out, namely normality test, multicollinearity test, and heteroscedasticity test.The analysis model in this study uses multiple linear regression with the equation: TOBINSQit = α + β1EIit + β2EFit +β3PROFit + +β4FSit +β5LEVit +β6LIQit++β7KAPit+ εit Information: TOBINSQit : firm value for company i year t α : Konstanta EIit : Eco-innovation of company i year t EFit : Eco-effeciency of company i year t PROFit : Profitability of company i year t FSit : Firm Size of company i year t LEVit : Leverage of company i year t LIQit : Likuidity of company i year t KAPit : External audit office of company i year t εit : error of company i year t

C. Hypothesis Testing Design
After the regression model used in this study is confirmed to be in accordance with the requirements of the classical assumption test, then hypothesis testing can then be carried out.The process of testing the hypothesis will be decided whether the research hypothesis will be accepted or rejected.

IV. RESEARCH RESULT A. Normality test
Based on the results of the normality test, it is known that the significance value is 0.206719 > 0.05, so it can be concluded that the residual value is normally distributed.

B. Multicollinearity Test
It can be seen that there is no multicollinearity between the independent variables, because the results of calculating the tolerance value for each independent variable do not show a result < 0.10 and the results of calculating the variance inflation factor (VIF) value also show that none of the results for each independent variable is > 10.Therefore, it can be concluded that there is no multicollinearity between the independent variables in this regression model.The results of data calculations using moderating variables show that profitabillty has a significant positive effect on the value of eco innovation and has no effect on eco efficiency.This is shown by the calculation results of Prob EI_PROF 0.05 =< 0.05 and Prob EF_PROF 0.3 > 0.05.Based on these calculations, the type of moderating variable produced using the Moderated Regression Analysis (MRA) method is a Moderation Predictor Variable.This explains that the moderating variable has an effect on X1 (Eco Innovation) and has no effect on X2 (Eco Effeciency).

C. Heteroscedasticity Test
2020).In addition, Zaman et al (2021) tested whether a company's environmental innovation influences the risk of falling stock price.high shares.The share price used generally refers to the closing price of shares, and is the price that occurs when shares are traded on the market (Alfinur, 2016).