The Impact of ESG Practices on Sustainable Companies Performance in Indonesia
DOI:
https://doi.org/10.30651/blc.v21i1.20333Kata Kunci:
ESG; company reputation; Indonesian companies; Sustainable InvestmentAbstrak
ESG practices aim to minimize a company's risks by caring about environmental, social, and governance aspects. Implementing ESG practices certainly has benefits for companies, namely improving the company's reputation. This research aims to measure the ESG practices of Indonesian companies listed on the Indonesian Stock Exchange. The research analysis uses the panel regression method. Previous researchers faced limitations in studying companies implementing ESG, leading to a limited number of analyzed companies. Therefore, using data obtained from Tobin's Q can distinguish this study. Based on the data processing results, environmental and ROA variables significantly positively impact the company's performance or reputation. However, social and governance variables do not influence the company's reputation, possibly due to various factors causing companies to focus less on the performance of these two variables
Referensi
Alareeni, B. A., & Hamdan, A. (2020). ESG impact on performance of US S&P 500-listed firms. Corporate Governance (Bingley), 20(7), 1409–1428. https://doi.org/10.1108/CG-06-2020-0258
Abughniem, M. S., Al Aishat, M. H., & Hamdan, A. M. (2019). Corporate sustainability as an antecedent to the financial performance: An empirical study. Polish Journal of Management Studies, 20(2), 35–44. https://doi.org/10.17512/pjms.2019.20.2.03
Apriyana, N. (2017). Pengaruh Profitabilitas, Ukuran Perusahaan Dan Ukuran Kap Terhadap Audit DelayPada Perusahaan Properti Dan Real Estate Yang Terdaftar Di Bursa Efek Indonesia Periode 2014-2017. Jurnal Ilmiahakuntansi Dan Teknologi, 10(3), 4. https://jurnal.buddhidharma.ac.id/index.php/akunto/article/view/250/124
Burlig, F., Preonas, L., & Woerman, M. (2020). Panel data and experimental design. Journal of Development Economics, 144(August 2019), 102458.https://doi.org/10.1016/j.jdeveco.2020.102458
de Souza Barbosa, A., da Silva, M. C. B. C., da Silva, L. B., Morioka, S. N., & de Souza, V. F. (2023). Integration of Environmental, Social, and Governance (ESG) criteria: their impacts on corporate sustainability performance. Humanities and Social Sciences Communications, 10(1), 1–18. https://doi.org/10.1057/s41599-023-01919-0
Darsono, S. N. A. C., Wong, W. K., Nguyen, T. T. H., & Wardani, D. T. K. (2022). The Economic Policy Uncertainty and Its Effect on Sustainable Investment: A Panel ARDL Approach. Journal of Risk and Financial Management, 15(6). https://doi.org/10.3390/jrfm15060254
Darto, D., Priharta, A., & Maryati, M. (2023). Capital Adequacy Ratio, Likuiditas, Efisiensi Operasional, Ukuran Perusahaan dan Profitabilitas: Bukti Empiris pada Bank Umum Syariah di Indonesia. BALANCE: Economic, Business, Management and Accounting Journal, 20 (2). https://doi.org/10.30651/blc.v20i2.18341
Dyllick, T., & Hockerts, K. (2002). Beyond the Business Case for Corporate Sustainability. Business Strategy and the Environment, 141(11), 130–141.
Dobrick, J., Klein, C., & Zwergel, B. (2023). Size bias in definitive ESG data. Finance Research Letters, 55(PB), 104014.https://doi.org/10.1016/j.frl.2023.104014
Faria, J.R., Tindall, G., & Terjesen, S. (2022). The Green Tobin's q: theory and evidence. Energy Economics, 110(March). https://doi.org/10.1016/j.eneco.2022.106033
Galbreath, J. (2013). ESG in Focus: The Australian Evidence. Journal of Business Ethics, 118(3), 529–541. http://doi.org/10.1007/s10551-012-1607-9
Gujarati, N. D & Porter, D. C. 2013. Dasar-dasar Ekonometrika. Buku 1 dan Buku 2 Edisi 5.
Ghazali, A., & Zulmaita. (2020). Pengaruh pengungkapan environmental, social, and governance (ESG) terhadap tingkat profitabilitas perusahaan (studi empiris pada perusahaan sektor infrastruktur yang terdaftar di bursa efek Indonesiaa. Prosiding SNAM PNJ, 3.
Juwita, K. (2019). Pengaruh DER, Firm Size, NPM, EPS, ROE, dan EVA terhadap Nilai Perusahaan pada Perusahaan Sektor Properti dan Real Estate yang Terdaftar di BEI Periode 2011-2015. Jurnal Manajemen Bisnis Dan Kewirausahaan, 1(1), 41. https://doi.org/10.24912/jmbk.v1i1.4747
Liu, S., Jin, J., & Nainar, K. (2023). Does ESG performance reduce banks' nonperforming loans? Finance Research Letters, 55(March).https://doi.org/10.1016/j.frl.2023.103859
Nelson, RR.(1959). Simple economics basic scientific research. J. Polit. Ekon. 67 (3), 297–306.
Nofrianti, A., & Saraswati, E. (2018). the Effect of Corporate Social Responsibility and Good. Fakultas Ekonomi Dan Bisnis, 3.
Paltrinieri, A., Dreassi, A., Migliavacca, M., & Piserà, S. (2020). Islamic finance development and banking ESG scores: Evidence from a cross-country analysis. Research in International Business and Finance, 51(September 2019), 101100.https://doi.org/10.1016/j.ribaf.2019.101100
Prabowo, A., & Djastuti, I. (2015). Department of Management, Faculty of Economics and Business, Diponegoro University
Mauliddah, N., & Fajriah, A. I. (2021). Return On Equity (ROE) dalam Memediasi antara Kepemilikan Manajerial dengan Modal Kerja (Working Capital). ISOQUANT: Jurnal Ekonomi, Manajemen dan Akuntansi, 5(2), 188-204. 10.24269/iso.v5i2.790
M. N. Safriani, and D. C. Utomo (2020). Pengaruh Environmental, Social, Governance (esg) Disclosure Terhadap Kinerja Perusahaan. diponegoro journal of accounting, vol. 9, no. 3, may. 2020.
Richardson, A. J. (2009). Regulatory Networks for Accounting and Auditing Standards: A Social Network Analysis of Canadian and International Standard Setting. Accounting. Organization and Society, 34(5), 571-588.
Safriani, M. N., & Utomo, D. C. (2020). Pengaruh Environmental, Social, Governance (ESG) Disclosure terhadap Kinerja Perusahaan. Diponegoro Journal of Accounting, 9(3), 1–11. http://ejournal-s1.undip.ac.id/index.php/accounting
Saputri, R. Y., Rahmat, J., & Prayitno, B. S. (2022). Analisis Tanggung Jawab Sosial Terhadap Reputasi Perusahaan : Studi di Industri Perkebunan Kelapa Sawit. Humanities,Management and Science Proceedings, 2(2), 219–224.
Simin Chen, Yu Song, Peng Gao ( 2023). Environmental, social, and governance (ESG) performance and financial outcomes: Analyzing the impact of ESG on financial performance. Journal of Environmental Management,https://doi.org/10.1016/j.jenvman.2023.118829.
Suttipun, Muttanachai. (2021). The influence of board composition on environmental, social and governance (ESG) disclosure of Thai listed companies. International Journal of Disclosure and Governance. 18. 1-12. 10.1057/s41310-021-00120-6.
Tarmuji, I., Maelah, R., & Tarmuji, NH (2016). The Impact of Environmental, Social and Governance Practices (ESG) on Economic Performance: Evidence from ESG Score. International Journal of Trade, Economics and Finance, 7(3), 67–74. https://doi.org/10.18178/ijtef.2016.7.3.501
Tseng, M. L., Tan, P. A., Jeng, S. Y., Lin, C. W. R., Negash, Y. T., & Darsono, S. N. A. C. (2019). Sustainable investment: Interrelated among corporate governance, economic performance and market risks using investor preference approach. Sustainability (Switzerland), 11(7), 1–15. https://doi.org/10.3390/su11072108
Zahid, R. M. A., Khan, M. K., Anwar, W., & Maqsood, U. S. (2022). The role of audit quality in the ESG-corporate financial performance nexus: Empirical evidence from Western European companies. Borsa Istanbul Review, 22, S200–S212. https://doi.org/10.1016/j.bir.2022.08.011
Zahid, M (2020). ESG in Focus : The Malaysian Evidence ESG IN FOCUS : THE MALAYSIAN EVIDENCE. City University Research Journal, 09(May), 72–84.
Unduhan
Diterbitkan
Terbitan
Bagian
Lisensi
Hak Cipta
- Hak cipta terhadap artikel yang diterbitkan di BALANCE: Economic, Business, Management, and Accounting Journal adalah penerbit atau BALANCE: Economic, Business, Management, and Accounting Journal.
- Penulis harus menyerahkan hak cipta pada jurnal dengan menandatangai dan mengirimkan form penyerahan hak cipta (template) melalui email balance@um-surabaya.ac.id.
- Penulis dapat menyebarluaskan artikelnya melalui media manapun.
Lisensi
Setiap karya yang ditulis penulis dilisensi dengan Creative Commons Attribution-NonCommercial 4.0 International License.
