Article Per Year (5 Year)
p-Index From 2021 - 2026
0.23
P-Index
This Author published in this journals
All Journal International Journal of Economics and Management Sciences
Sari Sembiring
Unknown Affiliation
Decision Sciences, Operations Research & Management Social Sciences

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

 1 
The Effect of Esg Score on Firm Performance With the Moderating Role of Board Independence: (A Study on Financial Sector Companies) Khairu Athaya; Sari Sembiring
International Journal of Economics and Management Sciences Vol. 3 No. 2 (2026): May : International Journal of Economics and Management Sciences
Publisher : Asosiasi Riset Ekonomi dan Akuntansi Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61132/ijems.v3i2.1246

Abstract

This study analyzes the transition of the Indonesian financial sector toward a sustainable financial ecosystem by examining the impact of Environmental, Social, and Governance (ESG) performance on firm profitability. Despite the regulatory push for sustainable finance, market responses to non-financial disclosures remain mixed, raising questions about whether sustainability practices genuinely enhance asset efficiency or merely impose administrative burdens. This study aims to investigate the effect of ESG Scores on Firm Performance and evaluate whether Board Independence acts as an internal governance mechanism to moderate this relationship. Utilizing a quantitative approach, a purposive sample of 30 financial companies listed on the Indonesia Stock Exchange was observed from 2021 to 2023, yielding 90 firm-year observations analyzed via panel data regression with mean-centered Moderated Regression Analysis (MRA). The empirical results reveal that ESG Scores have an insignificant negative impact on Return on Assets (ROA). Furthermore, Board Independence fails to moderate the relationship. These findings conclude that ESG integration in Indonesia is currently compliance-driven rather than substantive, where the short-term structural costs of sustainability disclosure still outweigh its immediate accounting returns.
Co-Authors Khairu Athaya