The impact of Economic, Social, and Good Corporate Governance (ESG) on Growth Opportunities (GO) in ESG companies listed on the Indonesia Stock Exchange english Section Economy
##plugins.themes.academic_pro.article.sidebar##
Published
Dec 21, 2023
Download
Statistic
Downloads
Download data is not yet available.
##plugins.themes.academic_pro.article.main##
Abstract
The impact of Economic, Social, and Governance (ESG) practices on companies listed on the Indonesia Stock Exchange. ESG influences strategic execution and long-term value creation. Growing societal awareness urges businesses to prioritize not only profits but also social and environmental implications. Government mandates, notably Indonesia's Financial Services Authority (OJK), stress ESG disclosure's importance. The research delves into the intricate relationship between ESG and Growth Opportunities (GO), emphasizing alignment with good governance standards, positive effects on reputation, and GO as a metric for future returns. This study underscores stakeholder engagement, community legitimacy through ESG disclosure, and the interplay between ESG and GO in sustainable value creation for investors, policymakers, and businesses amid Indonesian market challenges.
##plugins.themes.academic_pro.article.details##
How to Cite
Rachmad, J. V., & Sung Suk, K. (2023). The impact of Economic, Social, and Good Corporate Governance (ESG) on Growth Opportunities (GO) in ESG companies listed on the Indonesia Stock Exchange: english. Enrichment : Journal of Management, 13(5), 3315-3322. https://doi.org/10.35335/enrichment.v13i5.1798
References
Alessandri, T. M., Tong, T. W., & Reuer, J. J. (2012). Firm heterogeneity in growth option value: The role of managerial incentives. Strategic Management Journal, 33(13), 1557–1566. https://doi.org/10.1002/smj.1992
Alessandri, T. M., Tong, T. W., & Reuer, J. J. (2018). Firm heterogeneity in growth option value: The role of managerial incentives. Strategic Management Journal, 33(13), 1557–1566. https://doi.org/10.1002/smj.1992
Buallay, A. (2019). Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), 98–115. https://doi.org/10.1108/MEQ-12-2017-0149
Buchanan, B., Cao, C. X., & Chen, C. (2018). Corporate social responsibility, firm value, and influential institutional ownership. Journal of Corporate Finance, 52, 73–95. https://doi.org/10.1016/j.jcorpfin.2018.07.004
Crane, A., & Matten, D. (2021). COVID‐19 and the Future of CSR Research. Journal of Management Studies, 58(1), 280–284. https://doi.org/10.1111/joms.12642
Danbolt, J., Hirst, I., & Jones, E. (2014). Measuring growth opportunities. Applied Financial Economics, 12(3), 203–212. https://doi.org/10.1080/09603100110090064
de Andrés, P., de la Fuente, G., & Velasco, P. (2017). Does it really matter how a firm diversifies? Assets-in-place diversification versus growth options diversification. Journal of Corporate Finance, 43, 316–339. https://doi.org/10.1016/j.jcorpfin.2017.01.011
Del Viva, L., Kasanen, E., & Trigeorgis, L. (2017). Real Options, Idiosyncratic Skewness, and Diversification. Journal of Financial and Quantitative Analysis, 52(1), 215–241. https://doi.org/10.1017/S0022109016000703
Desyana, G., Gowira, D., & Jennifer, M. (2023). Pengaruh Leverage, Ukuran Perusahaan, Pertumbuhan Laba, dan Profitabilitas terhadap Kualitas Laba: Studi pada Perusahaan Basic Materials yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2021. JURNAL EKSPLORASI AKUNTANSI, 5(3), 1139–1152. https://doi.org/10.24036/jea.v5i3.908
Drempetic, S., Klein, C., & Zwergel, B. (2020). The Influence of Firm Size on the ESG Score: Corporate Sustainability Ratings Under Review. Journal of Business Ethics, 167(2), 333–360. https://doi.org/10.1007/s10551-019-04164-1
Dura, J. (2021). PENGARUH RETURN ON EQUITY (ROE), DEBT TO EQUITY RATIO (DER), DAN CURRENT RATIO (CR) TERHADAP RETURN SAHAM PERUSAHAAN SUB SEKTOR PROPERTY DAN REAL ESTATE YANG TERDAFTAR DI BURSA EFEK INDONESIA. RISTANSI: Riset Akuntansi, 1(1), 10–23. https://doi.org/10.32815/ristansi.v1i1.334
Farhana, S., & Adelina, Y. E. (2019). RELEVANSI NILAI LAPORAN KEBERLANJUTAN DI INDONESIA. Jurnal Akuntansi Multiparadigma, 10(3). https://doi.org/10.21776/ub.jamal.2019.10.3.36
Flammer, C. (2015). Does Corporate Social Responsibility Lead to Superior Financial Performance? A Regression Discontinuity Approach. Management Science, 61(11), 2549–2568. https://doi.org/10.1287/mnsc.2014.2038
Galbreath, J. (2011). Sustainable Development in Business: A Strategic View. In Theory and Practice of Corporate Social Responsibility (pp. 89–105). Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-16461-3_6
He, H., & Harris, L. (2020). The impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy. Journal of Business Research, 116, 176–182. https://doi.org/10.1016/j.jbusres.2020.05.030
Kim, S., Lee, G., & Kang, H. (2021). Risk management and corporate social responsibility. Strategic Management Journal, 42(1), 202–230. https://doi.org/10.1002/smj.3224
LINS, K. V., SERVAES, H., & TAMAYO, A. (2017). Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis. The Journal of Finance, 72(4), 1785–1824. https://doi.org/10.1111/jofi.12505
Masruroh, A., & Makaryanawati, M. (2020). Pengaruh Pengungkapan Tanggung Jawab Sosial terhadap Nilai Perusahaan pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia. Jurnal Akuntansi Aktual, 7(1), 67–80. https://doi.org/10.17977/um004v7i12020p67
Ningwati, G., Septiyanti, R., & Desriani, N. (2022). Pengaruh Environment, Social and Governance Disclosure terhadap Kinerja Perusahaan. Goodwood Akuntansi Dan Auditing Reviu, 1(1), 67–78. https://doi.org/10.35912/gaar.v1i1.1500
Pangestu, S. P., & Wijayanto, A. (2020). Pengaruh Return On Assets (ROA), Return On Equity (ROE), Earning Per Share (EPS), Price Earning Ratio (PER), dan Debt To Equity Ratio (DER) Terhadap Return Saham. Jurnal Ilmu Administrasi Bisnis, 9(1), 63–71. https://doi.org/10.14710/jiab.2020.26220
Putri, I. G. A. P. T. (2020). Effect of capital structure and sales growth on firm value with profitability as mediation. International Research Journal of Management, IT and Social Sciences. https://doi.org/10.21744/irjmis.v7n1.833
Putri, Y. R. (2020). The Effect of Profitability, Sales Growth, and Firm Size on Corporate Social Responsibility Disclosure. JOURNAL OF APPLIED MANAGERIAL ACCOUNTING, 4(1), 01–11. https://doi.org/10.30871/jama.v4i1.1886
Safriani, M. N. (2020). pengaruh environmentl, social, governance (ESG) disclosure terhaadap kinerja perusahaan. Pengaruh Environmentl, Social, Governance (ESG) Disclosure Terhaadap Kinerja Perusahaan, 9(3), 312.
Septiana, W. R., & Puspawati, D. (2022). Analisis good corporate governance terhadap pengungkapan ESG di Indonesia tahun 2016-2020. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 4(10), 4274–4283. https://doi.org/10.32670/fairvalue.v4i10.1642
Setiawan, I. G. A. N. A. pramana. (2019). Market To Book Value, Firm Size Dan Profitabilitas Terhadap Pengambilan Keputusan Lindung Nilai. 4(1), 124–140.
Shiu, Y., & Yang, S. (2017). Does engagement in corporate social responsibility provide strategic insurance‐like effects? Strategic Management Journal, 38(2), 455–470. https://doi.org/10.1002/smj.2494
Susanti, N., Latifa, I., & Sunarsi, D. (2020). The Effects of Profitability, Leverage, and Liquidity on Financial Distress on Retail Companies Listed on Indonesian Stock Exchange. Jurnal Ilmiah Ilmu Administrasi Publik, 10(1), 45. https://doi.org/10.26858/jiap.v10i1.13568
Vassolo, R. S., Anand, J., & Folta, T. B. (2018). Non-additivity in portfolios of exploration activities: a real options-based analysis of equity alliances in biotechnology. Strategic Management Journal, 25(11), 1045–1061. https://doi.org/10.1002/smj.414
Wang, C.-J., Tsai, H.-T., & Tsai, M.-T. (2014). Linking transformational leadership and employee creativity in the hospitality industry: The influences of creative role identity, creative self-efficacy, and job complexity. Tourism Management, 40, 79–89. https://doi.org/10.1016/j.tourman.2013.05.008
Wijaya, R. (2019). Analisis Perkembangan Return On Assets (ROA) dan Return On Equity (ROE) untuk Mengukur Kinerja Keuangan. Jurnal Ilmu Manajemen, 9(1), 40. https://doi.org/10.32502/jimn.v9i1.2115
Alessandri, T. M., Tong, T. W., & Reuer, J. J. (2018). Firm heterogeneity in growth option value: The role of managerial incentives. Strategic Management Journal, 33(13), 1557–1566. https://doi.org/10.1002/smj.1992
Buallay, A. (2019). Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), 98–115. https://doi.org/10.1108/MEQ-12-2017-0149
Buchanan, B., Cao, C. X., & Chen, C. (2018). Corporate social responsibility, firm value, and influential institutional ownership. Journal of Corporate Finance, 52, 73–95. https://doi.org/10.1016/j.jcorpfin.2018.07.004
Crane, A., & Matten, D. (2021). COVID‐19 and the Future of CSR Research. Journal of Management Studies, 58(1), 280–284. https://doi.org/10.1111/joms.12642
Danbolt, J., Hirst, I., & Jones, E. (2014). Measuring growth opportunities. Applied Financial Economics, 12(3), 203–212. https://doi.org/10.1080/09603100110090064
de Andrés, P., de la Fuente, G., & Velasco, P. (2017). Does it really matter how a firm diversifies? Assets-in-place diversification versus growth options diversification. Journal of Corporate Finance, 43, 316–339. https://doi.org/10.1016/j.jcorpfin.2017.01.011
Del Viva, L., Kasanen, E., & Trigeorgis, L. (2017). Real Options, Idiosyncratic Skewness, and Diversification. Journal of Financial and Quantitative Analysis, 52(1), 215–241. https://doi.org/10.1017/S0022109016000703
Desyana, G., Gowira, D., & Jennifer, M. (2023). Pengaruh Leverage, Ukuran Perusahaan, Pertumbuhan Laba, dan Profitabilitas terhadap Kualitas Laba: Studi pada Perusahaan Basic Materials yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2021. JURNAL EKSPLORASI AKUNTANSI, 5(3), 1139–1152. https://doi.org/10.24036/jea.v5i3.908
Drempetic, S., Klein, C., & Zwergel, B. (2020). The Influence of Firm Size on the ESG Score: Corporate Sustainability Ratings Under Review. Journal of Business Ethics, 167(2), 333–360. https://doi.org/10.1007/s10551-019-04164-1
Dura, J. (2021). PENGARUH RETURN ON EQUITY (ROE), DEBT TO EQUITY RATIO (DER), DAN CURRENT RATIO (CR) TERHADAP RETURN SAHAM PERUSAHAAN SUB SEKTOR PROPERTY DAN REAL ESTATE YANG TERDAFTAR DI BURSA EFEK INDONESIA. RISTANSI: Riset Akuntansi, 1(1), 10–23. https://doi.org/10.32815/ristansi.v1i1.334
Farhana, S., & Adelina, Y. E. (2019). RELEVANSI NILAI LAPORAN KEBERLANJUTAN DI INDONESIA. Jurnal Akuntansi Multiparadigma, 10(3). https://doi.org/10.21776/ub.jamal.2019.10.3.36
Flammer, C. (2015). Does Corporate Social Responsibility Lead to Superior Financial Performance? A Regression Discontinuity Approach. Management Science, 61(11), 2549–2568. https://doi.org/10.1287/mnsc.2014.2038
Galbreath, J. (2011). Sustainable Development in Business: A Strategic View. In Theory and Practice of Corporate Social Responsibility (pp. 89–105). Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-16461-3_6
He, H., & Harris, L. (2020). The impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy. Journal of Business Research, 116, 176–182. https://doi.org/10.1016/j.jbusres.2020.05.030
Kim, S., Lee, G., & Kang, H. (2021). Risk management and corporate social responsibility. Strategic Management Journal, 42(1), 202–230. https://doi.org/10.1002/smj.3224
LINS, K. V., SERVAES, H., & TAMAYO, A. (2017). Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis. The Journal of Finance, 72(4), 1785–1824. https://doi.org/10.1111/jofi.12505
Masruroh, A., & Makaryanawati, M. (2020). Pengaruh Pengungkapan Tanggung Jawab Sosial terhadap Nilai Perusahaan pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia. Jurnal Akuntansi Aktual, 7(1), 67–80. https://doi.org/10.17977/um004v7i12020p67
Ningwati, G., Septiyanti, R., & Desriani, N. (2022). Pengaruh Environment, Social and Governance Disclosure terhadap Kinerja Perusahaan. Goodwood Akuntansi Dan Auditing Reviu, 1(1), 67–78. https://doi.org/10.35912/gaar.v1i1.1500
Pangestu, S. P., & Wijayanto, A. (2020). Pengaruh Return On Assets (ROA), Return On Equity (ROE), Earning Per Share (EPS), Price Earning Ratio (PER), dan Debt To Equity Ratio (DER) Terhadap Return Saham. Jurnal Ilmu Administrasi Bisnis, 9(1), 63–71. https://doi.org/10.14710/jiab.2020.26220
Putri, I. G. A. P. T. (2020). Effect of capital structure and sales growth on firm value with profitability as mediation. International Research Journal of Management, IT and Social Sciences. https://doi.org/10.21744/irjmis.v7n1.833
Putri, Y. R. (2020). The Effect of Profitability, Sales Growth, and Firm Size on Corporate Social Responsibility Disclosure. JOURNAL OF APPLIED MANAGERIAL ACCOUNTING, 4(1), 01–11. https://doi.org/10.30871/jama.v4i1.1886
Safriani, M. N. (2020). pengaruh environmentl, social, governance (ESG) disclosure terhaadap kinerja perusahaan. Pengaruh Environmentl, Social, Governance (ESG) Disclosure Terhaadap Kinerja Perusahaan, 9(3), 312.
Septiana, W. R., & Puspawati, D. (2022). Analisis good corporate governance terhadap pengungkapan ESG di Indonesia tahun 2016-2020. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 4(10), 4274–4283. https://doi.org/10.32670/fairvalue.v4i10.1642
Setiawan, I. G. A. N. A. pramana. (2019). Market To Book Value, Firm Size Dan Profitabilitas Terhadap Pengambilan Keputusan Lindung Nilai. 4(1), 124–140.
Shiu, Y., & Yang, S. (2017). Does engagement in corporate social responsibility provide strategic insurance‐like effects? Strategic Management Journal, 38(2), 455–470. https://doi.org/10.1002/smj.2494
Susanti, N., Latifa, I., & Sunarsi, D. (2020). The Effects of Profitability, Leverage, and Liquidity on Financial Distress on Retail Companies Listed on Indonesian Stock Exchange. Jurnal Ilmiah Ilmu Administrasi Publik, 10(1), 45. https://doi.org/10.26858/jiap.v10i1.13568
Vassolo, R. S., Anand, J., & Folta, T. B. (2018). Non-additivity in portfolios of exploration activities: a real options-based analysis of equity alliances in biotechnology. Strategic Management Journal, 25(11), 1045–1061. https://doi.org/10.1002/smj.414
Wang, C.-J., Tsai, H.-T., & Tsai, M.-T. (2014). Linking transformational leadership and employee creativity in the hospitality industry: The influences of creative role identity, creative self-efficacy, and job complexity. Tourism Management, 40, 79–89. https://doi.org/10.1016/j.tourman.2013.05.008
Wijaya, R. (2019). Analisis Perkembangan Return On Assets (ROA) dan Return On Equity (ROE) untuk Mengukur Kinerja Keuangan. Jurnal Ilmu Manajemen, 9(1), 40. https://doi.org/10.32502/jimn.v9i1.2115