ANALYSIS OF PROFITABILITY, ESG IMPLEMENTATION, CREDIT RISK AND FIRM VALUE (STUDY OF LISTED BANKS ON THE INDONESIA STOCK EXCHANGE 2019-2023)

This research is a type of quantitative research that uses secondary data from banking firms listed on the Indonesia Stock Exchange in 2019-2023. The title of this research is “Analysis of Profitability, ESG Implementation, Credit Risk and Firm Value (Study of Listed Banks on the Indonesia Stock Exchange 2019-2023)”. This study aims to analyze the effect of Profitability, Implementation of Environmental, Social, Governance on Firm Value and test the moderating role of Credit Risk on the influence of the relationship of Social and Governance aspect on Firm Value. Banking firms listed on the Indonesia Stock Exchange are the population in this study. The sample selection was carried out using purposive sampling method by setting several criteria. The number obtained based on these criteria is 65 samples. Based on the model selection test, the Fixed Effect Model (FEM) is the most appropriate panel regression model. Based on the FEM test, results obtained that: 1) Profitability has a positive effect on the value of banking firms, 2) Environmental aspect have no effect on the value of banking firms, 3) Social aspect have no effect on the value of banking firms, 4) Governance aspect have no effect on the value of banking firms 5) Credit risk has no effect on the value of banking firms 6) Credit risk has a positive effect on the value of banking firms. These results suggest that banks should enhance profitability through efficient asset management. Regarding ESG, banks must ensure genuine implementation beyond mere disclosure to build investor trust. The findings also indicate that good credit risk management can reduce its negative impact, maintaining firm value despite potential risks. This research contributes to the literature on financial performance, ESG, and risk management in the banking sector.