Pengaruh Risiko Environment Social and Governance Terhadap Kinerja Keuangan Perusahaan (Studi Pada Perusahaan Didalam Indeks IDXESGL)

Authors

  • Fahry Priandhana Bina Nusantara University

DOI:

https://doi.org/10.21512/becossjournal.v4i1.7797

Keywords:

ESG Risk, Financial Performance, IDXESGL Index

Abstract

This study aims to analyze the effect of ESG risk on the financial performance of companies. The object of this research is companies listed on the Indonesian Stock Exchange and included in the IDXESGL index. The total sample in this study is 24 companies. The independent variable in this research is ESG risk where the data is available and generated from the Indonesian Stock Exchange cooperation with Sustainalytics. The independent variable in this study is the performance of the company represented by the ROA (Return on Asset) obtained by dividing profits by total assets. Data analysis was performed using simple linear regression and Microsoft Excel. The results of data analysis show that there is a negative effect of ESG risk on the company's financial performance. Thus, the higher the ESG risk of a company, the financial performance of the company will decrease. However, the effect of ESG risk on a company's financial performance is not significant.

Dimensions

Plum Analytics

Author Biography

Fahry Priandhana, Bina Nusantara University

Accounting Department, Faculty of Economics and Communication

References

Almeyda, Raisa., Darmansyah, Asep. (2019). The Influence of Environmental, Social and Governace (ESG) Disclosure on Firm Financial Performance. IPTEK Journal of Proceedings Series No (5)

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Bursa Efek Indonesia. (November 2020). Panduan Indeks ESG Leaders Versi 1.1. Jakarta: Bursa Efek Indonesia

Datar, Srikant M., Rajan, Madhav V. (2018). Horngren's Cost Accounting: A Managerial Emphasis 16. Global Edition: Pearson. Harlow.

Garrison, Ray H., Noreen, Eric., Brewer, Peter., Seng, C Nam., Yuen Katherine. (2015). Managerial Accounting An Asian Perspective. 2. Singapore: McGraw-Hill.

Noor, Muhammad., Scrimgeur, Frank., Reddy, Krishna., Abidin, Sazali. (2015). The Relationship Between Environmental Performance and Financial Performance in Periods of Growth and Contraction: Evidence from Australian Publicly Listed Companies. Journal of Cleaner Production Volume 102, Pages 324-332.

Sciarelli, Mauro., Landi, Giovanni. (2018). Towards a More Ethical Market: The Impact of ESG Rating on Corporate Financial Performance. Social Responsibility Journal ISSN: 1747-1117

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Published

2022-02-01

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Section

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