The impact of the implementation of economic, social, and good corporate governance (ESG) on the performance of esg-listed companies on the Indonesia stock exchange

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Published Dec 11, 2023
https://doi.org/10.35335/enrichment.v13i5.1675
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Vol. 13 No. 5 (2023): December ; Management Science And Field

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Herlina Waluyo
Universitas Pelita Harapan, Indonesia
Kim Sung Suk
Universitas Pelita Harapan, Indonesia

Abstract

The implementation of Economic, Social, and Good Corporate Governance (ESG) is expected to enhance company performance by reducing the risks faced by investors. This study will examine how the implementation of ESG influences company performance, measured using Return on Assets (ROA), with the hypothesis that ESG has a positive impact on company performance. The data used are from secondary sources, with a sample of 84 companies and a total of 298 observations through unbalanced panel data with a fixed-effect model regression. The research results indicate a negative impact of ESG on company performance due to a lack of awareness and education about sustainability practices. To increase awareness of ESG implementation, adequate regulations and law enforcement are needed to enhance the appeal of green projects.

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How to Cite
Waluyo, H., & Suk, K. S. (2023). The impact of the implementation of economic, social, and good corporate governance (ESG) on the performance of esg-listed companies on the Indonesia stock exchange. Enrichment : Journal of Management, 13(5), 2796-2803. https://doi.org/10.35335/enrichment.v13i5.1675

References

The implementation of Economic, Social, and Good Corporate Governance (ESG) is expected to enhance company performance by reducing the risks faced by investors. This study will examine how the implementation of ESG influences company performance, measured using Return on Assets (ROA), with the hypothesis that ESG has a positive impact on company performance. The data used are from secondary sources, with a sample of 84 companies and a total of 298 observations through unbalanced panel data with a fixed-effect model regression. The research results indicate a negative impact of ESG on company performance due to a lack of awareness and education about sustainability practices. To increase awareness of ESG implementation, adequate regulations and law enforcement are needed to enhance the appeal of green projects