The Effect of Environmental Performance, Liquidity, and Leverage on Profitability with Firm Size as a Moderating Variable: Evidence from Mining Companies Listed on the IDX and SET (2018–2024)

Abstract : This study aims to examine the impact of environmental performance, liquidity, and leverage on profitability, with firm size acting as a moderating variable, among mining sector companies listed on the Indonesia Stock Exchange (IDX) and the Stock Exchange of Thailand (SET). Profitability serves as a critical indicator for assessing overall corporate performance. A quantitative approach was employed, utilizing panel data regression analysis. Data processing and analysis were conducted using EViews version 13. The research sample comprised 28 mining companies listed on the IDX and 25 mining companies listed on the SET, covering the observation period from 2018 to 2024. The empirical results reveal that environmental performance has a positive and significant effect on profitability for mining companies listed on the IDX; however, it does not significantly affect the profitability of those listed on the SET. Liquidity demonstrates a positive and significant impact on profitability across mining companies in both the IDX and the SET. Conversely, leverage exerts a negative and significant influence on profitability for companies in both markets. Furthermore, firm size fails to moderate the relationship between environmental performance and profitability in both the IDX and SET contexts. Firm size significantly moderates the effect of liquidity on profitability for companies listed on the IDX, but this moderating effect is absent for those listed on the SET. Finally, firm size is unable to moderate the impact of leverage on profitability for mining companies listed on either exchange.