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Non-linear effect of Environmental, Social, and Governance on corporate performance (study in non-financial firms listed on Indonesia Stock Exchange)

dc.contributor.authorNareswari, Ninditya
dc.contributor.authorTarczyńska-Łuniewska, Małgorzata
dc.contributor.authorBramanti, Geodita Woro
dc.date.accessioned2023-10-24T11:04:15Z
dc.date.available2023-10-24T11:04:15Z
dc.date.issued2022-12-30
dc.identifier.issn2082-4440
dc.identifier.urihttp://hdl.handle.net/11089/48147
dc.description.abstractEnvironmental, Social, and Governance (ESG) factors have become essential considerations for stakeholders. Balancing external and internal performance is crucial. However, there are some constraints to implementing ESG at the corporate level, especially in Indonesia. This study aims to test the effect of ESG on corporate performance. The non-financial firms listed on Indonesia Stock Exchange from 2016–2020 were used as a sample. Empirical evidence found the U-shaped effect of ESG rating on corporate performance. Further, robustness tests are conducted by dividing the sample annually and removing the 2020 period to show more robust evidence. In contrast, the results showed no evidence of a U-shaped effect. The robustness test showed that the ESG rating positively affected corporate performance in 2016–2019 and turned negative in 2020, the first time COVID-19 happened in Indonesia. This result indicated that in a crisis time, implementing ESG will be costly and reflected in financial performance. In contrast, during a non-crisis time, ESG positively impacts financial performance.en
dc.language.isoen
dc.publisherWydawnictwo Uniwersytetu Łódzkiegopl
dc.relation.ispartofseriesEkonomia Międzynarodowa;40pl
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0
dc.subjectcorporate performanceen
dc.subjectESGen
dc.subjectIndonesiaen
dc.subjectsustainability financeen
dc.titleNon-linear effect of Environmental, Social, and Governance on corporate performance (study in non-financial firms listed on Indonesia Stock Exchange)en
dc.typeArticle
dc.page.number154-170
dc.contributor.authorAffiliationNareswari, Ninditya - Institute of Economics and Finance, Doctoral School of University of Szczecin, Polanden
dc.contributor.authorAffiliationTarczyńska-Łuniewska, Małgorzata - Department of Econometrics and Statistics, Institute of Economics and Finance, University of Szczecinen
dc.contributor.authorAffiliationBramanti, Geodita Woro - Department of Business Management, Institut Teknologi Sepuluh Nopember, Indonesiaen
dc.identifier.eissn2300-6005
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dc.contributor.authorEmailNareswari, Ninditya - ninditya.nareswari@phd.usz.edu.pl
dc.contributor.authorEmailTarczyńska-Łuniewska, Małgorzata - malgorzata.tarczynska-luniewska@usz.edu.pl
dc.contributor.authorEmailBramanti, Geodita Woro - geodita@mb.its.ac.id
dc.identifier.doi10.18778/2082-4440.40.01


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