The effect of environmental, social, governance performance on the financial performance of Indonesian with foreign ownership as moderation

This study examines the impact of Environmental, Social, and Governance (ESG) performance on the financial performance of Indonesian companies, with foreign ownership as a moderating factor. Using a quantitative approach, this study analyzed data from 46 companies listed on the Indonesia Stock Exchange from 2020 to 2022 using panel data regression and processed using STATA software. The findings show that environmental performance has a significant effect on financial performance, while social performance and governance do not. Foreign ownership moderates but weakens the link between environmental performance and financial performance. Control variables such as leverage, profitability, and fixed assets also have a significant effect on financial performance. The results of this study can provide valuable insights for policymakers, investors, and corporate managers in understanding the dynamics between ESG performance, foreign ownership, and financial performance, as well as contributing to readers' knowledge and becoming a source of information and reference for companies. Further research is warranted to delve deeper into these dynamics and explore their broader implications for sustainable business practices and regulatory frameworks.