Is it Corporate Governance, Industry, and Profitability Matter on Esg Performance? Evidence from Indonesian Companies
This study aims to test and provide empirical evidence regarding the influence of corporate governance (percentage of independent commissioners), industry, and profitability (ROA and retention ratio) on environmental, social, and governance (ESG) performance. This study also uses two control variables: company size and company age. The objects of this study are companies listed on the Indonesia Stock Exchange (IDX) that have complete ESG scores from the Thomson Reuters Eikon database for 2011-2020. The sample companies are 25 companies selected based on the purposive sampling method. Hypothesis testing was carried out using panel data regression analysis with the STATA 14.0 program. The results of the study show that the industry variable, profitability (retention ratio), has a negative and significant effect on ESG performance. For corporate governance variables (independent commissioners), profitability (ROA) has no effect on ESG performance. This study adds value to the existing literature because it provides an overview of the impact of the factors used on ESG performance in companies in Indonesia.
Copyright (c) 2023 Filardi Rahmadani, Fajri Adrianto, Mohamad Fany Alfarisi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International (CC-BY-SA). that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
