The Effect of Capital Structure, Liquidity, and Operating Cash Flow on Profitability with Sustainability Report Disclosure as a Mediating Variable (An Empirical Study on Energy Sector Companies Listed on the Indonesia Stock Exchange for the 2020–2024 Period)
Year: 2025
Type: article
Abstract: This study aims to examine the effect of capital structure, liquidity, and operating cash flow on profitability, with Sustainability Report Disclosure as a mediating variable, in energy sector companies listed on the Indonesia Stock Exchange during 2020–2024. Using a quantitative approach with panel data regression analysis, the sample comprises 13 energy companies selected through purposive sampling. The appropriate regression model was determined through the Chow, Hausman, and Lagrange Multiplier tests. The Sobel test was then applied to assess the mediating role of Sustainability Report Disclosure. The results reveal that among the three independent variables, only operating cash flow has a positif and signifikan effect on profitability, while capital structure and liquidity show no signifikan effect. For Sustainability Report Disclosure (GRI), capital structure, liquidity, and operating cash flow all exhibit no signifikan influence. Furthermore, GRI does not signifikanly affect profitability. The Sobel test confirms that GRI fails to mediate the relationship between capital structure, liquidity, or operating cash flow and profitability. These findings indicate that, within Indonesia’s energy sector, sustainability reporting has not yet been a determining factor in improving profitability, suggesting that other factors outside the research model may play a more dominant role.
Authors: Mutiara Farianda, Hakiman Hakiman
Institution: Mercu Buana University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4413928994