The Effect of Sustainability Reporting and Foreign Ownership on Firm Value: the Mediating Role of Financial Performance

This research examines the impact of sustainability reporting and foreign ownership on firm value, with financial performance as a mediating variable, in manufacturing companies listed on the Indonesia Stock Exchange (IDX). Utilizing a quantitative approach, the study employs purposive sampling to select 16 companies within 5 years observations. Data analysis is conducted using multiple linear regression and path analysis. The findings indicate that only foreign ownership significantly influences financial performance, measured by Return on Assets (ROA), while sustainability reporting show no effect. Additionally, sustainability reporting does not affect firm value, whereas foreign ownership and financial performance (ROA) have a significant impact. Mediation analysis reveals that financial performance mediates the relationship between foreign ownership and firm value but does not mediate the effect of sustainability reporting on firm value.