Impact of Sustainability Reporting, Risk-Based Capital, and Liquidity on the Value of Shariah Insurance Companies with Profitability as a Moderator

Abstract ―​

This study investigates the effect of the Sustainability Report, Risk Based Capital (RBC), and liquidity on firm value, while examining the moderating role of profitability. The research population comprises 78 general insurance companies registered with the Financial Services Authority (OJK) from 2019 to 2023. Based on purposive sampling, 25 Islamic general insurance companies—both full-fledged entities and general insurers with Sharia Business Units (UUS)—were selected as the sample. The study employs secondary data collected from annual reports, financial statements, and sustainability reports sourced from company websites, OJK, IDX, and independent financial portals. Data analysis is conducted using descriptive statistics, panel data regression, coefficient of determination tests, hypothesis testing, and Moderated Regression Analysis (MRA) with the assistance of EViews software. The empirical findings reveal that the Sustainability Report, RBC, and liquidity significantly and positively influence firm value. Moreover, profitability moderates the relationship between liquidity and firm value, but fails to moderate the effects of the Sustainability Report and RBC on firm value. These results highlight the importance of financial soundness and disclosure practices in enhancing firm value, particularly within the Islamic general insurance industry.