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EFFECTS OF FINANCIAL PERFORMANCE ON ESG PERFORMANCE: EVIDENCE FROM INDONESIAN SHARIA COMPANIES Koh, Heskey; Ervina Waty; Said, Jamaliah
I-Finance Journal Vol 11 No 2 (2025): I-FINANCE: a Research Journal on Islamic Finance
Publisher : Fakultas Ekonomi dan Bisnis Islam Universitas Islam Negeri Raden Fatah Palembang, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19109/ifinance.v11i2.31342

Abstract

This study analyzes the correlation between financial performance and Environmental, Social, and Governance (ESG) performance in Indonesian Shariah-compliant companies, leading to a significant research gap in the context of Islamic finance.  This study employs panel data from 20 companies listed on the Jakarta Islamic Index (JII) from 2019 to 2023, comprising 100 observations. A multiple linear regression analysis is conducted to investigate the relationships between ESG scores and financial indicators such as Return on Equity (ROE), total assets, and Tobin's Q.  The regression model indicates statistically significant findings, with ROE showing a significant positive correlation with ESG performance. Specifically, a 1 percentage point increase in ROE is associated with a 0.245 point increase in the ESG score, which supports a model where financial performance facilitates sustainability.  Company size and market valuation do not exhibit significant relationships with ESG factors.  Findings suggest prioritizing companies with robust ROE performance as indicators of financial health and ESG leadership within Shariah-compliant firms.  This study presents initial empirical evidence regarding the relationship between financial performance and ESG factors within the Indonesian Islamic capital market. It challenges conventional assumptions about the causality between ESG and performance by showing that profitability facilitates sustainability performance in Islamic firms.  This study provides significant insights into the expanding global Islamic finance sector, anticipated to attain USD 7.5 trillion by 2028, while advocating for integrated Islamic ESG frameworks that acknowledge financial performance as a basis for effective sustainability implementation. 
What Drives Gig Worker Success? Investigating the Impact of Relevant Experience and Self-Directed Learning Putra, Hamzah Muhammad Mardi; Martono, Besar Agung; Said, Jamaliah; Setyaningrum, Retno Purwani
Jurnal Manajemen Bisnis Vol. 16 No. 2: September 2025
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/mb.v16i2.26861

Abstract

Research aims: This study aims to explore the relationship between self-directed learning, relevant work experience, and digital freelancers' performance in Southeast Asia, especially Indonesia and Malaysia, by considering the role of intrinsic motivation as a moderating variable.Design/Methodology/Approach: The study was conducted in two countries, Indonesia and Malaysia, involving 235 freelance respondents from various digital fields. Data were analyzed using SEM-PLS.Research findings: The results indicate that relevant experience is an important bridge between self-learning and work performance. Interestingly, intrinsic motivation does not act as a reinforcement of this relationship.Theoretical Contribution/Originality: The present study expands theoretical understanding of how work competencies are formed in the gig economy ecosystem, as well as how internal motivation needs to be viewed more contextually through self-determination theory (SDT) framework.Practitioners/Policy Implications: These findings reinforce the urgency of developing individual learning capacity and creating a support ecosystem, especially in a country like Indonesia that still lacks formal regulation and protection for freelancers, compared to Malaysia, which has been more progressive in recognizing and supporting the role of freelancers in the digital economy.Research Limitations/Implications: As the approach used is quantitative and cross-sectional, the data only shows conditions at a certain point in time. Future longitudinal studies are recommended to capture changes in behavior and performance in more depth over time.