The Effect of Profitability on Firm Value with Corporate Social Responsibility (CSR) as A Moderating Variable in Mining Sector Companies Listed on The Indonesia Stock Exchange

The present study aims to analyse the effect of profitability on firm value with Corporate Social Responsibility (CSR) as a moderating variable in mining sector companies listed on the Indonesia Stock Exchange (IDX). The firm value is measured using Tobin's Q, while the profitability is proxied by Return on Assets (ROA). The measurement of CSR is achieved through content analysis, with the Global Reporting Initiative (GRI) standards serving as the underlying framework. The utilisation of secondary data from annual financial reports for the 2020–2024 period, in conjunction with the implementation of Moderated Regression Analysis (MRA), has yielded findings that suggest a positive and significant relationship between profitability and firm value. Furthermore, the present study demonstrates that CSR strengthens the positive effect of profitability on firm value, albeit to a moderate degree. The findings of this study indicate that in the mining sector, strong financial performance will be more effectively responded to by the market and translated into higher firm value when supported by good CSR practices and disclosure. The findings of this research offer strategic counsel to management, advising them to prioritise not only the enhancement of profitability, but also the cultivation of social legitimacy through the implementation of CSR initiatives. This approach is intended to ensure the maximisation of long-term firm value creation.