The relationship between corporate governance and sustainability performance: the moderating role of public attention

Purpose This study explores the moderating role of public attention via digital media in the relationship between corporate governance and environmental, social and governance (ESG) performance in Indonesia. Design/methodology/approach The study uses data from 43 publicly listed companies between 2019 and 2023, applying panel data regression to analyze both the direct and moderating effects of governance mechanisms, including board size, gender diversity, foreign board presence, board meeting frequency, sustainability committee and risk committee. Public attention is proxied through Google Trends to measure online surveillance. Findings The findings reveal that corporate governance mechanisms significantly enhance ESG performance. Public attention strengthens the positive effects of board size, foreign board presence, meeting frequency and the presence of sustainability and risk committees on ESG performance, emphasizing its role as a social oversight mechanism. However, its moderating effect on the relationship between gender diversity and ESG performance is insignificant, suggesting a need for greater female representation in corporate governance. Research limitations/implications Research limitations include the use of Google Trends as a proxy for public attention, which may not capture all dimensions of digital engagement, and the limited number of observations and sample size due to restricted availability of data from companies with comprehensive ESG disclosures in Indonesia. Originality/value This study contributes to legitimacy and stakeholder theories by demonstrating how digital media fosters corporate accountability and sustainability, offering new insights into the role of public attention in corporate governance.