The Influence of Environmental, Social, and Governance (ESG) on Corporate Financial Performance

This study investigates the impact of Environmental, Social, and Governance (ESG) factors on corporate financial performance. The research focuses on companies listed on the Indonesia Stock Exchange in 2023. A purposive sampling technique was employed, yielding a final sample of 70 companies that met the selection criteria. The study utilizes simple regression analysis to examine the relationship between ESG and financial performance. ESG performance is measured using ESG scores published by Morningstar Sustainalytics, while financial performance is assessed based on Return on Assets (ROA). The results indicate a positive and significant relationship between ESG performance and financial performance, suggesting that companies with higher ESG scores tend to achieve better financial outcomes.

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Publication Details

Journal
Jurnal Riset Akuntansi dan Keuangan
Published
2025-04-26
DOI
https://doi.org/10.17509/jrak.v13i1.80514
Primary Topic
Economic Growth and Development
Type
article
Field-Weighted Citation Impact
0.00
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article

The Influence of Environmental, Social, and Governance (ESG) on Corporate Financial Performance

Hijroh Rokhayati, Andra Tiara Syafira
Jurnal Riset Akuntansi dan Keuangan
Economic Growth and Development
article

The Influence of Environmental, Social, and Governance (ESG) on Corporate Financial Performance

Hijroh Rokhayati, Andra Tiara Syafira
article en

Abstract

This study investigates the impact of Environmental, Social, and Governance (ESG) factors on corporate financial performance. The research focuses on companies listed on the Indonesia Stock Exchange in 2023. A purposive sampling technique was employed, yielding a final sample of 70 companies that met the selection criteria. The study utilizes simple regression analysis to examine the relationship between ESG and financial performance. ESG performance is measured using ESG scores published by Morningstar Sustainalytics, while financial performance is assessed based on Return on Assets (ROA). The results indicate a positive and significant relationship between ESG performance and financial performance, suggesting that companies with higher ESG scores tend to achieve better financial outcomes.

Jurnal Riset Akuntansi dan KeuanganVol. 13(1)
Jenderal Soedirman University (ID)
Openalex Percentile: Top 60%
Economic Growth and Development
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The Influence of Environmental, Social, and Governance (ESG) on Corporate Financial Performance — Hijroh Rokhayati, Andra Tiara Syafira · Jurnal Riset Akuntansi dan Keuangan (2025) | TGRS Research Map | TGRS