Environmental, Social, and Governance (ESG) Disclosure and Company Performance: Empirical Evidence in Indonesian Banking
Abstract
This study aims to analyze the relationship between ESG disclosure and company performance with a sample of banking companies listed on the Indonesia Stock Exchange in 2010-2021. Company performance is measured using Return on Assets (ROA), Return on Equity (ROE), Tobin's Q, and Stock Return (Ri). Furthermore, ESG disclosure is measured using the Global Reporting Initiative (GRI) standard for environmental and social disclosure, while governance disclosure is assessed using the GCG score based on POJK Number 55/POJK.03/2016 concerning the implementation of Governance for Commercial Banks, and Indonesian Regulation (PBI) Number 11/33/PBI/2009 concerning the Implementation of Good Corporate Governance for Sharia Commercial Banks and Sharia Business Units. This study uses a quantitative approach with the help of the Eviews 13.0 analysis tool. The results of this study indicate that environmental, social, and governance disclosures have no effect on ROA. While governance disclosures have a negative effect on ROE, in addition to environmental and social disclosures that have no effect on ROE. On the other hand, social and governance disclosures have a positive effect on Tobin’s Q, which is the opposite of environmental disclosures that have a negative effect. Meanwhile, environmental disclosures have a negative effect on stock returns, in addition to social and governance disclosures that have no effect on stock returns.
Keywords: Disclosure; Environment; Social; Governance; Performance
References
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Acheampong, P., E. Agalega, and A. K. Shibu. 2014. The Effect of Financial Leverage and Market Size on Stock Returns on The Ghana Stock Exchange: Evidence from Selected Stocks in the Manufacturing Sector. International journal of financial research 5 (1): 125.
Aditama, F. 2022. Analisis Pengaruh Environment, Social, Governance (Esg) Score Terhadap Return Saham Yang Terdaftar Di Index Idx30. Contemporary Studies in Economic, Finance and Banking 1 (4): 592–602.
Akdogan, N., S. K. Selimoglu, and M. Turkcan. 2020. Sustainability Accounting and Corporate Social Responsibility in Turkey and In Its Region. Journal of Accounting and Management Information Systems 19 (1): 5–32.
Ali, R., M. S. Sial, T. V. Brugni, J. Hwang, N. V. Khuong, and T. H. T. Khanh. 2020. Does CSR Moderate The Relationship between Corporate Governance and Chinese Firm’s Financial Performance? Evidence from The Shanghai Stock Exchange (SSE) Firms. Sustainability 12 (1): 149.
Asuquo, A. I., E. T. Dada, and U. R. Onyeogaziri. 2018. The Effect of Sustainability Reporting on Corporate Performance of Selected Quoted Brewery Firms in Nigeria. International Journal of Business & Law Research 6 (3): 1–10.
Atan, R., M. M. Alam, J. Said, and M. Zamri. 2018. The Impacts of Environmental, Social, and Governance Factors on Firm Performance: Panel Study of Malaysian Companies. Management of Environmental Quality: An International Journal 29 (2): 182–194.
Aydoğmuş, M., G. Gülay, and K. Ergun. 2022. Impact of ESG Performance on Firm Value and Profitability. Borsa Istanbul Review 22: S119–S127.
Aziz, F., and A. Chariri. 2023. The Effect of Environmental, Social, and Governance (ESG) Disclosure and Environmental Performance on Stock Return. Diponegoro Journal of Accounting 12 (3).
Bătae, O. M., V. D. Dragomir, and L. Feleagă. 2021. The Relationship between Environmental, Social, and Financial Performance in the Banking Sector: A European Study. Journal of cleaner production 290: 125791.
Beltratti, A., and R. M. Stulz. 2012. The Credit Crisis Around the Globe: Why Did Some Banks Perform Better? Journal of financial economics 105 (1): 1–17.
Buallay, A. 2019. Is Sustainability Reporting (ESG) Associated with Performance? Evidence from The European Banking Sector. Management of Environmental Quality: An International Journal 30 (1): 98–115.
———. 2020. Sustainability Reporting and Firm’s Performance: Comparative Study between Manufacturing and Banking Sectors. International Journal of Productivity and Performance Management 69 (3): 431–445.
Buallay, A., S. M. Fadel, J. Y. Al-Ajmi, and S. Saudagaran. 2020. Sustainability Reporting and Performance of MENA Banks: Is There a Trade-Off? Measuring Business Excellence 24 (2): 197–221.
Buallay, A., S. M. Fadel, J. Alajmi, and S. Saudagaran. 2021. Sustainability Reporting and Bank Performance after Financial Crisis: Evidence from Developed and Developing Countries. Competitiveness Review: An International Business Journal 31 (4): 747–770.
Carroll, A. B. 1991. The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons 34 (4): 39–48.
Chouaibi, S., and H. Affes. 2021. The Effect of Social and Ethical Practices on Environmental Disclosure: Evidence from an International ESG Data. Corporate Governance: The International Journal of Business in Society 21 (7): 1293–1317.
Christofi, A., P. Christofi, and S. Sisaye. 2012. Corporate Sustainability: Historical Development and Reporting Practices. Management Research Review 35 (2): 157–172.
Cornett, M. M., O. Erhemjamts, and H. Tehranian. 2016. Greed or Good Deeds: An Examination of The Relation between Corporate Social Responsibility and The Financial Performance of US Commercial Banks Around the Financial Crisis. Journal of Banking & Finance 70: 137–159.
Dincer, H., I. E. Celik, R. Yilmaz, and Ü. Hacioglu. 2014. The Financial Implications of Corporate Social Responsibility in The Banking Sector. Managerial Issues in Finance and Banking: A Strategic Approach to Competitiveness: 197–207.
Dobbs, S., and C. Van Staden. 2016. Motivations for Corporate Social and Environmental Reporting: New Zealand Evidence. Sustainability Accounting, Management and Policy Journal 7 (3): 449–472.
Esteban-Sanchez, P., M. de la Cuesta-Gonzalez, and J. D. Paredes-Gazquez. 2017. Corporate Social Performance and Its Relation with Corporate Financial Performance: International Evidence in The Banking Industry. Journal of Cleaner Production 162: 1102–1110.
Galant, A., and S. Cadez. 2017. Corporate Social Responsibility and Financial Performance Relationship: A Review of Measurement Approaches. Economic research-Ekonomska istraživanja 30 (1): 676–693.
Gholami, A., P. A. Murray, and J. Sands. 2022. Environmental, Social, Governance & Financial Performance Disclosure for Large Firms: Is this Different for SME Firms? Sustainability 14 (10): 6019.
Ghoul, S. El, O. Guedhami, and Y. Kim. 2017. Country-Level Institutions, Firm Value, and the Role of Corporate Social Responsibility Initiatives. Journal of International Business Studies 48: 360–385.
Ghozali, I. 2018. Aplikasi Analisis Multivariate Dengan Program IBM SPSS 25. Badan Penerbit Universitas Diponegoro.
Godha, A., and P. Jain. 2015. Sustainability Reporting Trend in Indian Companies as per GRI Framework: A Comparative Study. South Asian Journal of Business and Management Cases 4 (1): 62–73.
Grewal, J., E. J. Riedl, and G. Serafeim. 2019. Market Reaction to Mandatory Nonfinancial Disclosure. Management Science 65 (7): 3061–3084.
Gunawan, J. 2017. Pengaruh Corporate Social Responsibility dan Corporate Governance terhadap Agresivitas Pajak. Jurnal Akuntansi 21 (3): 425–436.
Gweyi, M. O., and J. Karanja. 2014. Effect of Financial Leverage on Financial Performance of Deposit Taking Savings and Credit Co-operative in Kenya.
Hill, C. W. L., and T. M. Jones. 1992. Stakeholder‐Agency Theory. Journal of Management Studies 29 (2): 131–154.
Husada, E. V., and S. Handayani. 2021. Pengaruh Pengungkapan ESG terhadap Kinerja Keuangan Perusahaan (Studi Empiris pada Perusahaan Sektor Keuangan yang Terdaftar di BEI Periode 2017-2019). Jurnal Bina Akuntansi 8 (2): 122–144.
Jain, S., and M. Raithatha. 2022. Risk Disclosures and Firm Value: The Role of Governance in an Emerging Market. International Journal of Productivity and Performance Management 71 (8): 3205–3227.
Jeanice, J., and S. S. Kim. 2023. Pengaruh Penerapan ESG Terhadap Nilai Perusahaan di Indonesia. Owner: Riset Dan Jurnal Akuntansi 7 (2): 1646–1653.
Kasmir. 2014. Bank dan Lembaga Keuangan Lainnya. Jakarta: PT RajaGrafindo.
El Khoury, R., N. Nasrallah, and B. Alareeni. 2023. ESG and Financial Performance of Banks in The MENAT Region: Concavity–Convexity Patterns. Journal of Sustainable Finance & Investment 13 (1): 406–430.
Laguir, I., M. Marais, J. El Baz, and R. Stekelorum. 2018. Reversing the Business Rationale for Environmental Commitment in Banking: Does Financial Performance Lead to Higher Environmental Performance? Management Decision 56 (2): 358–375.
Lenssen, J.-J., N. A. Dentchev, and L. Roger. 2014. Sustainability, Risk Management and Governance: Towards an Integrative Approach. Corporate Governance 14 (5): 670–684.
Li, Y., M. Gong, X.-Y. Zhang, and L. Koh. 2018. The Impact of Environmental, Social, and Governance Disclosure on Firm Value: The Role of CEO Power. The British accounting review 50 (1): 60–75.
Manes-Rossi, F., G. Nicolò, and D. Argento. 2020. Non-Financial Reporting Formats in Public Sector Organizations: A Structured Literature Review. Journal of Public Budgeting, Accounting & Financial Management 32 (4): 639–669.
Martsila, I. S., and W. Meiranto. 2013. Pengaruh Corporate Governance terhadap Kinerja Keuangan Perusahaan. Diponegoro Journal of Accounting: 209–222.
Maryadi, A. R., and P. I. M. Susilowati. 2020. Pengaruh Return On Equity (Roe), Loan To Deposit Ratio (Ldr), Non Performing Loan (Npl) Dan Biaya Operasional Terhadap Pendapatan Operasional (Bopo) Terhadap Nilai Perusahaan Pada Subsektor Perbankan Yang Terdaftar Di Bei Pada Tahun 2015-2017. Jurnal Sains Manajemen dan Kewirusahaan 4 (1): 69–80.
Matuszak, Ł., and E. Różańska. 2017. CSR Disclosure in Polish-Listed Companies in the Light of Directive 2014/95/EU Requirements: Empirical Evidence. Sustainability 9 (12): 2304.
Menicucci, E., and G. Paolucci. 2023. ESG Dimensions and Bank Performance: An Empirical Investigation in Italy. Corporate Governance: The International Journal of Business in Society 23 (3): 563–586.
Miralles‐Quirós, M. M., J. L. Miralles‐Quirós, and J. Redondo‐Hernández. 2019. The Impact of Environmental, Social, and Governance Performance on Stock Prices: Evidence from The Banking Industry. Corporate Social Responsibility and Environmental Management 26 (6): 1446–1456.
Miras‐Rodríguez, M. del M., A. Carrasco‐Gallego, and B. Escobar‐Pérez. 2015. Has The CSR Engagement of Electrical Companies had an Effect on Their Performance? A Closer Look at The Environment. Business strategy and the Environment 24 (8): 819–835.
Ningwati, G., R. Septiyanti, and N. Desriani. 2022. Pengaruh Environment, Social and Governance Disclosure terhadap Kinerja Perusahaan. Goodwood Akuntansi dan Auditing Reviu 1 (1): 67–78.
Nugroho, N. A., and H. Hersugondo. 2022. Analisis Pengaruh Environment, Social, Governance (ESG) Disclosure terhadap Kinerja Keuangan Perusahaan. E-Bisnis: Jurnal Ilmiah Ekonomi dan Bisnis 15 (2): 233–243.
Oino, I. 2019. Do Disclosure and Transparency Affect Bank’s Financial Performance? Corporate Governance: The International Journal of Business in Society 19 (6): 1344–1361.
Purnomo, T. A. W. H., S. A. D. Kusuma, and C. Amelia. 2023. PENGUNGKAPAN ESG: CARA EFEKTIF UNTUK MENCAPAI BISNIS BERKELANJUTAN? Jurnal Riset Akuntansi dan Keuangan 19 (1): 15–30.
Safriani, M. N., and D. C. Utomo. 2020. Pengaruh Environmental, Social, Governance (ESG) Disclosure terhadap Kinerja Perusahaan. Diponegoro Journal of Accounting 9 (3).
Sahut, J.-M., and H. Pasquini-Descomps. 2015. ESG Impact on Market Performance of Firms: International Evidence. Management International 19 (2): 40–63.
Sejati, B. P., and A. Prastiwi. 2015. Pengaruh Pengungkapan Sustainability Report terhadap Kinerja dan Nilai Perusahaan. Diponegoro Journal of Accounting: 195–206.
Setyahuni, S. W., and R. S. Handayani. 2020. On the Value Relevance of Information on Environmental, Social, and Governance (ESG): An Evidence from Indonesia. Journal of Critical Reviews 7 (12): 50–58.
Shakil, M. H., N. Mahmood, M. Tasnia, and Z. H. Munim. 2019. Do Environmental, Social and Governance Performance Affect the Financial Performance of Banks? A Cross-Country Study of Emerging Market Banks. Management of Environmental Quality: An International Journal 30 (6): 1331–1344.
Shen, C.-H., M.-W. Wu, T.-H. Chen, and H. Fang. 2016. To Engage or Not to Engage in Corporate Social Responsibility: Empirical Evidence from Global Banking Sector. Economic Modelling 55: 207–225.
Soana, M.-G. 2011. The Relationship between Corporate Social Performance and Corporate Financial Performance in the Banking Sector. Journal of Business Ethics 104 (1): 133–148.
Spirova, T. 2023. ESG Scores and Stock Price Returns: How Do ESG Scores Impact Stock Price Returns in the Netherlands. University of Twente.
Taiwo, O. O., O. S. Alao, and A. F. Festus. 2020. Effect of Sustainability Reporting on Faithful Representation of Accounting Information of Deposit Money Banks Listed in Nigeria. Journal of Business and Management 22 (3): 19–23.
Teng, M., J. Si, and T. Hachiya. 2016. Banking Relationship, Relative Leverage and Stock Returns in Japan. Pacific-Basin Finance Journal 40: 86–101.
La Torre, M., F. Mango, A. Cafaro, and S. Leo. 2020. Does the ESG Index Affect Stock Return? Evidence from The Eurostoxx50. Sustainability 12 (16): 6387.
Velte, P. 2017. Does ESG Performance Have an Impact on Financial Performance? Evidence from Germany. Journal of Global Responsibility 8 (2): 169–178.
Wooldridge, J. M. 2016. Introductory Econometrics. Sixth Edit. Cengage Learning.
Wu, M.-W., C.-H. Shen, and T.-H. Chen. 2017. Application of Multi-Level Matching between Financial Performance and Corporate Social Responsibility in the Banking Industry. Review of Quantitative Finance and Accounting 49: 29–63.
Yawika, M. K., and S. Handayani. 2019. The Effect of ESG Performance on Economic Performance in The High Profile Industry in Indonesia. Journal of International Business and Economics 7 (2): 112–121.
Yu, E. P., C. Q. Guo, and B. Van Luu. 2018. Environmental, Social and Governance Transparency and Firm Value. Business Strategy and the Environment 27 (7): 987–1004.
Yuen, M. K., T. Ngo, T. D. Q. Le, and T. H. Ho. 2022. The Environment, Social and Governance (ESG) Activities and Profitability Under COVID-19: Evidence from the Global Banking Sector. Journal of Economics and Development 24 (4): 345–364.
Acheampong, P., E. Agalega, and A. K. Shibu. 2014. The Effect of Financial Leverage and Market Size on Stock Returns on The Ghana Stock Exchange: Evidence from Selected Stocks in the Manufacturing Sector. International journal of financial research 5 (1): 125.
Aditama, F. 2022. Analisis Pengaruh Environment, Social, Governance (Esg) Score Terhadap Return Saham Yang Terdaftar Di Index Idx30. Contemporary Studies in Economic, Finance and Banking 1 (4): 592–602.
Akdogan, N., S. K. Selimoglu, and M. Turkcan. 2020. Sustainability Accounting and Corporate Social Responsibility in Turkey and In Its Region. Journal of Accounting and Management Information Systems 19 (1): 5–32.
Ali, R., M. S. Sial, T. V. Brugni, J. Hwang, N. V. Khuong, and T. H. T. Khanh. 2020. Does CSR Moderate The Relationship between Corporate Governance and Chinese Firm’s Financial Performance? Evidence from The Shanghai Stock Exchange (SSE) Firms. Sustainability 12 (1): 149.
Asuquo, A. I., E. T. Dada, and U. R. Onyeogaziri. 2018. The Effect of Sustainability Reporting on Corporate Performance of Selected Quoted Brewery Firms in Nigeria. International Journal of Business & Law Research 6 (3): 1–10.
Atan, R., M. M. Alam, J. Said, and M. Zamri. 2018. The Impacts of Environmental, Social, and Governance Factors on Firm Performance: Panel Study of Malaysian Companies. Management of Environmental Quality: An International Journal 29 (2): 182–194.
Aydoğmuş, M., G. Gülay, and K. Ergun. 2022. Impact of ESG Performance on Firm Value and Profitability. Borsa Istanbul Review 22: S119–S127.
Aziz, F., and A. Chariri. 2023. The Effect of Environmental, Social, and Governance (ESG) Disclosure and Environmental Performance on Stock Return. Diponegoro Journal of Accounting 12 (3).
Bătae, O. M., V. D. Dragomir, and L. Feleagă. 2021. The Relationship between Environmental, Social, and Financial Performance in the Banking Sector: A European Study. Journal of cleaner production 290: 125791.
Beltratti, A., and R. M. Stulz. 2012. The Credit Crisis Around the Globe: Why Did Some Banks Perform Better? Journal of financial economics 105 (1): 1–17.
Buallay, A. 2019. Is Sustainability Reporting (ESG) Associated with Performance? Evidence from The European Banking Sector. Management of Environmental Quality: An International Journal 30 (1): 98–115.
———. 2020. Sustainability Reporting and Firm’s Performance: Comparative Study between Manufacturing and Banking Sectors. International Journal of Productivity and Performance Management 69 (3): 431–445.
Buallay, A., S. M. Fadel, J. Y. Al-Ajmi, and S. Saudagaran. 2020. Sustainability Reporting and Performance of MENA Banks: Is There a Trade-Off? Measuring Business Excellence 24 (2): 197–221.
Buallay, A., S. M. Fadel, J. Alajmi, and S. Saudagaran. 2021. Sustainability Reporting and Bank Performance after Financial Crisis: Evidence from Developed and Developing Countries. Competitiveness Review: An International Business Journal 31 (4): 747–770.
Carroll, A. B. 1991. The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons 34 (4): 39–48.
Chouaibi, S., and H. Affes. 2021. The Effect of Social and Ethical Practices on Environmental Disclosure: Evidence from an International ESG Data. Corporate Governance: The International Journal of Business in Society 21 (7): 1293–1317.
Christofi, A., P. Christofi, and S. Sisaye. 2012. Corporate Sustainability: Historical Development and Reporting Practices. Management Research Review 35 (2): 157–172.
Cornett, M. M., O. Erhemjamts, and H. Tehranian. 2016. Greed or Good Deeds: An Examination of The Relation between Corporate Social Responsibility and The Financial Performance of US Commercial Banks Around the Financial Crisis. Journal of Banking & Finance 70: 137–159.
Dincer, H., I. E. Celik, R. Yilmaz, and Ü. Hacioglu. 2014. The Financial Implications of Corporate Social Responsibility in The Banking Sector. Managerial Issues in Finance and Banking: A Strategic Approach to Competitiveness: 197–207.
Dobbs, S., and C. Van Staden. 2016. Motivations for Corporate Social and Environmental Reporting: New Zealand Evidence. Sustainability Accounting, Management and Policy Journal 7 (3): 449–472.
Esteban-Sanchez, P., M. de la Cuesta-Gonzalez, and J. D. Paredes-Gazquez. 2017. Corporate Social Performance and Its Relation with Corporate Financial Performance: International Evidence in The Banking Industry. Journal of Cleaner Production 162: 1102–1110.
Galant, A., and S. Cadez. 2017. Corporate Social Responsibility and Financial Performance Relationship: A Review of Measurement Approaches. Economic research-Ekonomska istraživanja 30 (1): 676–693.
Gholami, A., P. A. Murray, and J. Sands. 2022. Environmental, Social, Governance & Financial Performance Disclosure for Large Firms: Is this Different for SME Firms? Sustainability 14 (10): 6019.
Ghoul, S. El, O. Guedhami, and Y. Kim. 2017. Country-Level Institutions, Firm Value, and the Role of Corporate Social Responsibility Initiatives. Journal of International Business Studies 48: 360–385.
Ghozali, I. 2018. Aplikasi Analisis Multivariate Dengan Program IBM SPSS 25. Badan Penerbit Universitas Diponegoro.
Godha, A., and P. Jain. 2015. Sustainability Reporting Trend in Indian Companies as per GRI Framework: A Comparative Study. South Asian Journal of Business and Management Cases 4 (1): 62–73.
Grewal, J., E. J. Riedl, and G. Serafeim. 2019. Market Reaction to Mandatory Nonfinancial Disclosure. Management Science 65 (7): 3061–3084.
Gunawan, J. 2017. Pengaruh Corporate Social Responsibility dan Corporate Governance terhadap Agresivitas Pajak. Jurnal Akuntansi 21 (3): 425–436.
Gweyi, M. O., and J. Karanja. 2014. Effect of Financial Leverage on Financial Performance of Deposit Taking Savings and Credit Co-operative in Kenya.
Hill, C. W. L., and T. M. Jones. 1992. Stakeholder‐Agency Theory. Journal of Management Studies 29 (2): 131–154.
Husada, E. V., and S. Handayani. 2021. Pengaruh Pengungkapan ESG terhadap Kinerja Keuangan Perusahaan (Studi Empiris pada Perusahaan Sektor Keuangan yang Terdaftar di BEI Periode 2017-2019). Jurnal Bina Akuntansi 8 (2): 122–144.
Jain, S., and M. Raithatha. 2022. Risk Disclosures and Firm Value: The Role of Governance in an Emerging Market. International Journal of Productivity and Performance Management 71 (8): 3205–3227.
Jeanice, J., and S. S. Kim. 2023. Pengaruh Penerapan ESG Terhadap Nilai Perusahaan di Indonesia. Owner: Riset Dan Jurnal Akuntansi 7 (2): 1646–1653.
Kasmir. 2014. Bank dan Lembaga Keuangan Lainnya. Jakarta: PT RajaGrafindo.
El Khoury, R., N. Nasrallah, and B. Alareeni. 2023. ESG and Financial Performance of Banks in The MENAT Region: Concavity–Convexity Patterns. Journal of Sustainable Finance & Investment 13 (1): 406–430.
Laguir, I., M. Marais, J. El Baz, and R. Stekelorum. 2018. Reversing the Business Rationale for Environmental Commitment in Banking: Does Financial Performance Lead to Higher Environmental Performance? Management Decision 56 (2): 358–375.
Lenssen, J.-J., N. A. Dentchev, and L. Roger. 2014. Sustainability, Risk Management and Governance: Towards an Integrative Approach. Corporate Governance 14 (5): 670–684.
Li, Y., M. Gong, X.-Y. Zhang, and L. Koh. 2018. The Impact of Environmental, Social, and Governance Disclosure on Firm Value: The Role of CEO Power. The British accounting review 50 (1): 60–75.
Manes-Rossi, F., G. Nicolò, and D. Argento. 2020. Non-Financial Reporting Formats in Public Sector Organizations: A Structured Literature Review. Journal of Public Budgeting, Accounting & Financial Management 32 (4): 639–669.
Martsila, I. S., and W. Meiranto. 2013. Pengaruh Corporate Governance terhadap Kinerja Keuangan Perusahaan. Diponegoro Journal of Accounting: 209–222.
Maryadi, A. R., and P. I. M. Susilowati. 2020. Pengaruh Return On Equity (Roe), Loan To Deposit Ratio (Ldr), Non Performing Loan (Npl) Dan Biaya Operasional Terhadap Pendapatan Operasional (Bopo) Terhadap Nilai Perusahaan Pada Subsektor Perbankan Yang Terdaftar Di Bei Pada Tahun 2015-2017. Jurnal Sains Manajemen dan Kewirusahaan 4 (1): 69–80.
Matuszak, Ł., and E. Różańska. 2017. CSR Disclosure in Polish-Listed Companies in the Light of Directive 2014/95/EU Requirements: Empirical Evidence. Sustainability 9 (12): 2304.
Menicucci, E., and G. Paolucci. 2023. ESG Dimensions and Bank Performance: An Empirical Investigation in Italy. Corporate Governance: The International Journal of Business in Society 23 (3): 563–586.
Miralles‐Quirós, M. M., J. L. Miralles‐Quirós, and J. Redondo‐Hernández. 2019. The Impact of Environmental, Social, and Governance Performance on Stock Prices: Evidence from The Banking Industry. Corporate Social Responsibility and Environmental Management 26 (6): 1446–1456.
Miras‐Rodríguez, M. del M., A. Carrasco‐Gallego, and B. Escobar‐Pérez. 2015. Has The CSR Engagement of Electrical Companies had an Effect on Their Performance? A Closer Look at The Environment. Business strategy and the Environment 24 (8): 819–835.
Ningwati, G., R. Septiyanti, and N. Desriani. 2022. Pengaruh Environment, Social and Governance Disclosure terhadap Kinerja Perusahaan. Goodwood Akuntansi dan Auditing Reviu 1 (1): 67–78.
Nugroho, N. A., and H. Hersugondo. 2022. Analisis Pengaruh Environment, Social, Governance (ESG) Disclosure terhadap Kinerja Keuangan Perusahaan. E-Bisnis: Jurnal Ilmiah Ekonomi dan Bisnis 15 (2): 233–243.
Oino, I. 2019. Do Disclosure and Transparency Affect Bank’s Financial Performance? Corporate Governance: The International Journal of Business in Society 19 (6): 1344–1361.
Purnomo, T. A. W. H., S. A. D. Kusuma, and C. Amelia. 2023. PENGUNGKAPAN ESG: CARA EFEKTIF UNTUK MENCAPAI BISNIS BERKELANJUTAN? Jurnal Riset Akuntansi dan Keuangan 19 (1): 15–30.
Safriani, M. N., and D. C. Utomo. 2020. Pengaruh Environmental, Social, Governance (ESG) Disclosure terhadap Kinerja Perusahaan. Diponegoro Journal of Accounting 9 (3).
Sahut, J.-M., and H. Pasquini-Descomps. 2015. ESG Impact on Market Performance of Firms: International Evidence. Management International 19 (2): 40–63.
Sejati, B. P., and A. Prastiwi. 2015. Pengaruh Pengungkapan Sustainability Report terhadap Kinerja dan Nilai Perusahaan. Diponegoro Journal of Accounting: 195–206.
Setyahuni, S. W., and R. S. Handayani. 2020. On the Value Relevance of Information on Environmental, Social, and Governance (ESG): An Evidence from Indonesia. Journal of Critical Reviews 7 (12): 50–58.
Shakil, M. H., N. Mahmood, M. Tasnia, and Z. H. Munim. 2019. Do Environmental, Social and Governance Performance Affect the Financial Performance of Banks? A Cross-Country Study of Emerging Market Banks. Management of Environmental Quality: An International Journal 30 (6): 1331–1344.
Shen, C.-H., M.-W. Wu, T.-H. Chen, and H. Fang. 2016. To Engage or Not to Engage in Corporate Social Responsibility: Empirical Evidence from Global Banking Sector. Economic Modelling 55: 207–225.
Soana, M.-G. 2011. The Relationship between Corporate Social Performance and Corporate Financial Performance in the Banking Sector. Journal of Business Ethics 104 (1): 133–148.
Spirova, T. 2023. ESG Scores and Stock Price Returns: How Do ESG Scores Impact Stock Price Returns in the Netherlands. University of Twente.
Taiwo, O. O., O. S. Alao, and A. F. Festus. 2020. Effect of Sustainability Reporting on Faithful Representation of Accounting Information of Deposit Money Banks Listed in Nigeria. Journal of Business and Management 22 (3): 19–23.
Teng, M., J. Si, and T. Hachiya. 2016. Banking Relationship, Relative Leverage and Stock Returns in Japan. Pacific-Basin Finance Journal 40: 86–101.
La Torre, M., F. Mango, A. Cafaro, and S. Leo. 2020. Does the ESG Index Affect Stock Return? Evidence from The Eurostoxx50. Sustainability 12 (16): 6387.
Velte, P. 2017. Does ESG Performance Have an Impact on Financial Performance? Evidence from Germany. Journal of Global Responsibility 8 (2): 169–178.
Wooldridge, J. M. 2016. Introductory Econometrics. Sixth Edit. Cengage Learning.
Wu, M.-W., C.-H. Shen, and T.-H. Chen. 2017. Application of Multi-Level Matching between Financial Performance and Corporate Social Responsibility in the Banking Industry. Review of Quantitative Finance and Accounting 49: 29–63.
Yawika, M. K., and S. Handayani. 2019. The Effect of ESG Performance on Economic Performance in The High Profile Industry in Indonesia. Journal of International Business and Economics 7 (2): 112–121.
Yu, E. P., C. Q. Guo, and B. Van Luu. 2018. Environmental, Social and Governance Transparency and Firm Value. Business Strategy and the Environment 27 (7): 987–1004.
Yuen, M. K., T. Ngo, T. D. Q. Le, and T. H. Ho. 2022. The Environment, Social and Governance (ESG) Activities and Profitability Under COVID-19: Evidence from the Global Banking Sector. Journal of Economics and Development 24 (4): 345–364.
Published
2024-12-24
How to Cite
CAHYANINGTYAS, Susi Retna; MUHSYAF, Saipul Arni; HUSNAINI, Wahidatul.
Environmental, Social, and Governance (ESG) Disclosure and Company Performance: Empirical Evidence in Indonesian Banking.
Jurnal Ekonomi Akuntansi dan Manajemen, [S.l.], v. 23, n. 2, p. 134-154, dec. 2024.
ISSN 2459-9816.
Available at: <https://jurnal.unej.ac.id/index.php/JEAM/article/view/47084>. Date accessed: 02 jan. 2025.
doi: https://doi.org/10.19184/jeam.v23i2.47084.
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