The Mediating Effect of ESG Performance on Board Structure and Financial Performance: Evidence of Indonesia
Abstract
This study offers fresh data on the significance of corporate location in CSR reporting from nine developing nations, together with a review of the environment's present status and how eco-friendly behaviors and attitudes might preserve the planet. The Bloomberg database was used to gather environmental, social, and governance score data for the years 2013 through 2020. This study concludes some findings. First, independent members have an effect on the company's financial success. Second, independent boards do a lot of damage to ESG. The third thing is that the ESG may lessen the effect that independent members have on financial performance. The findings of this study will benefit any country where sustainable green practices are uncommon and the ecosystem deteriorates on a daily basis.
Keywords: ESG performance, board structure and financial performance
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References
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Galbreath, J. (2013a). ESG in Focus: The Australian Evidence. Journal of Business Ethics, 118(3), 529–541. https://doi.org/10.1007/s10551-012-1607-9
Galbreath, J. (2013b). ESG in Focus: The Australian Evidence. Journal of Business Ethics, 118(3), 529–541. https://doi.org/10.1007/s10551-012-1607-9
Giese, G., Lee, L.-E., Melas, D., Nagy, Z., & Nishikawa, L. (2019). The Journal of Portfolio Management Foundations of ESG Investing: How ESG Affects Equity Valuation, Risk, and Performance. http://www.msci.com/prod-
Haque, F. (2017). The effects of board characteristics and sustainable compensation policy on carbon performance of UK firms. British Accounting Review, 49(3), 347–364. https://doi.org/10.1016/j.bar.2017.01.001
Harjoto, M., Laksmana, I., & Lee, R. (2015). Board Diversity and Corporate Social Responsibility. Journal of Business Ethics, 132(4), 641–660. https://doi.org/10.1007/s10551-014-2343-0
Ifada, L. M., Fuad, K., & Kartikasari, L. (2021). Managerial ownership and firm value: The role of corporate social responsibility. Jurnal Akuntansi Dan Auditing Indonesia, 25(2). https://doi.org/10.20885/jaai.vol25.i
Ifada, L. M., Ghozali, I., & Faisal. (2021). Corporate social responsibility, normative pressure and firm value: evidence from companies listed on indonesia stock exchange. Advances in Intelligent Systems and Computing, 1194 AISC, 390–397. https://doi.org/10.1007/978-3-030-50454-0_38
Ifada, L. M., & Indriastuti, M. (2021). Government Ownership, International Operations ,Board Independence and Environmental Disclosure: Evidence from Asia–Pacific. Jurnal Dinamika Akuntansi, 13(2), 131–147. https://doi.org/10.15294/jda.v13i2.30268
Ifada, L. M., Indriastuti, M., Ibrani, E. Y., & Setiawanta, Y. (2021). Environmental Performance and Environmental Disclosure: The Role of Financial Performance. Journal of Asian Finance, Economics and Business, 8(4), 349–362. https://doi.org/10.13106/jafeb.2021.vol8.no4.0349
Ifada, L. M., Indriastuti, M., & Setiawanta, Y. (2021). Corporate Social Responsibility, Ownership Structure and Firm Value: Evidence from Companies Listed on Indonesia Stock Exchange. Roceedings of the 37th International Business Information Management Association (IBIMA), , 30–31.
Ifada, L. M., & Jaffar, R. (2023). Does Environmental Cost Expenditure Matter? Evidence from Selected Countries in the Asia-Pacific Region. Sustainability (Switzerland), 15(5). https://doi.org/10.3390/su15054322
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Published
2024-10-11
How to Cite
IHBAL, Ahmad; IFADA, Luluk Muhimatul.
The Mediating Effect of ESG Performance on Board Structure and Financial Performance: Evidence of Indonesia.
Jurnal Ilmiah Akuntansi dan Bisnis, [S.l.], v. 19, n. 2, oct. 2024.
ISSN 2303-1018.
Available at: <https://ojs.unud.ac.id/index.php/jiab/article/view/107291>. Date accessed: 05 nov. 2024.
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