ENTERPRISE RISK MANAGEMENT, SUSTAINABILITY REPORTING, AND FIRM VALUE: THE MODERATING ROLE OF FINANCIAL PERFORMANCE

This study aims to analyze the effects of Enterprise Risk Management (ERM) and Sustainability Report disclosure on firm value, with Return on Equity (ROE) as a moderating variable, among energy sector companies listed on the Indonesia Stock Exchange during 2020–2024. This study employs a quantitative approach using panel data regression. Secondary data were collected from annual reports, sustainability reports, and financial statements of 18 energy sector companies, resulting in 90 observations. ERM was measured using the Enterprise Risk Management Disclosure Index based on the COSO framework, Sustainability Report disclosure using the Sustainability Report Disclosure Index based on Global Reporting Initiative (GRI) standards, firm value using Tobin’s Q, and ROE using the ratio of net income to shareholders’ equity. The results indicate that ERM disclosure has no significant effect on firm value (β = 0.077902; p = 0.8953), whereas Sustainability Report disclosure has a significant negative effect (β = −0.617959; p = 0.0007). ROE also has no significant direct effect on firm value (β = 0.032236; p = 0.7672). Furthermore, ROE significantly moderates the relationship between ERM disclosure and firm value in a negative direction (β = −4.891053; p = 0.0446) and the relationship between Sustainability Report disclosure and firm value in a positive direction (β = 5.677508; p = 0.0453). These findings suggest that profitability conditions influence how investors perceive risk management and sustainability disclosures. Therefore, energy sector companies should improve the quality and relevance of their ERM and sustainability disclosures while considering profitability to support firm value creation and strengthen investor confidence.