Analysis of ESG Performance, Profitability, Leverage, and Sustainable Growth on Firm Value Category An Empirical Study Using Binary Logistic Regression
Main Article Content
Abstract
Background: Firm value is an important indicator for assessing a company’s performance and prospects. Environmental, social, and governance (ESG) factors, profitability, leverage, and sustainable growth are expected to be related to firm value. However, the relationships among these factors need to be tested empirically using an appropriate statistical approach.
Aim: This study aims to analyze the effects of ESG Performance, Return on Assets (ROA), Leverage Ratio, and Sustainable Growth on firm value category.
Method: The study uses a quantitative approach with secondary data comprising 88 observations. The analysis applies binary logistic regression with the Enter method. The tests include the Omnibus Test, the Hosmer–Lemeshow Test, the Nagelkerke coefficient of determination, the classification table, and tests of the regression coefficients at the 5% significance level.
Results: The results show that the regression model as a whole is not yet significant, with a Chi-square value of 5.071 and a significance of 0.280. A Nagelkerke R-squared of 0.075 indicates that the model’s explanatory power is relatively limited. The Hosmer–Lemeshow test yields a significance of 0.477, while the overall classification accuracy reaches 59.1%. Partially, ESG Performance, ROA, Leverage Ratio, and Sustainable Growth have significance values of 0.084, 0.364, 0.757, and 0.982, respectively. Accordingly, none of the independent variables is significant at the 5% level.
Conclusion: The model provides insufficient statistical evidence of the effects of the four variables on firm value category.
Implementation: Future research should consider adding relevant variables, reviewing how firm value is measured, and refining the model specification to improve explanatory power and predictive accuracy.
Article Details
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