ESG (ENVIRONMENT, SOCIAL, GOVERNANCE) AND FINANCIAL PERFORMANCE IN INDONESIA DURING THE COVID-19 PANDEMIC

• Main Author: Amerannisa, Maulidia
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62959
• Institution: Institut Teknologi Bandung

Environment, social, and governance (ESG) has received increased attention in the last few years in the world including Indonesia. The companies that have high concerns on ESG especially during pandemic may perform better than those that has less concerns on ESG. This study aims to examine the relationship of ESG and financial performance measures by Tobin’s Q and Return on Asset (ROA) of listed companies in Indonesia as per 2020. Using ordinary least square (OLS) with common effect model (CEF), the finding reveals that ESG performance and IDXESGL has a positive relationship with financial performance. Control variables show that size has negative relationship with Financial Performance, then the net profit margin and asset turnover have a positive relationship with financial performance. The implications of the study for the company conduct the policies that can support implementing ESG in accordance with Sustainable Development Goals (SDGs) standards to create a sustainable business, finance, and investment. It can be affected by stock prices increase, brand image for the company, and attracting more investors. It is suggested for future research to compare the implementation of ESG in Indonesia with other countries, it is also possible for some of the countries in Southeast Asia, Asia, or from different continents.