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Journal : Indonesian Journal of Multidisciplinary Science

The Influence of Environmental, Social, Governance on Company Financial Risks: A Study on LQ-45 Muhammad Farhan Ramadhan; Noer Azam Achsani; Trias Andati
Indonesian Journal of Multidisciplinary Science Vol. 2 No. 11 (2023): Indonesian Journal of Multidisciplinary Science
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/ijoms.v2i11.611

Abstract

This study aims to see the consequence of environmental, social, and governance (ESG) performance on LQ-45firm’s financial risk. This study uses a 23 sample of LQ-45 firms from 2016 to 2020 and applies Generalized Method of Moment (GMM) analysis. The studies find an adverse effect of ESG Performance and firm’s risk. Controversies on ESG also adversely influences the firm’s risk. However, there is no significant effect on board gender diversity on financial risk of the firm. Also, These findings are in line with stakeholder, signaling, Legitimacy, and risk management theory. The firms that perform reasonably on ESG have lower total risk. However, the firm’s negligence on ESG and involvement in ESG Controversies moderates the ESG-total risk nexus. The findings will help investor and portofolio managers evaluate how ESG, ESG Controversies, and Board Gender Diversity influence firm’s financial risk and help them make a better investment decisions. Additionally, regulators can revise the ESG and ESG Controversy disclosure criteria and make them accessable to all stakeholders for better decision making.
Co-Authors -, Kaseno . Gunawan . Risfaheri ., Harianto ., Widhianthini A, Akhmad Aang Munawar Abd. Rasyid Syamsuri Abdullah, Feriansyah Abdurachman Abdurachman Achmad Fadillah Achmad Gus Fahmi Adetiya Rachman Aditya Galih Prihartono Aditya Kurniawan Aditya Kurniawan Adler H. Manurung Adler H. Manurung Adler Hayman Manurung Adler Haymans Manurung Adytia Pradnya Murti Agus Buono Agustina Widi Palupiningrum‬ Ahmad Haryo Oktamto Ahmad Heri Firdaus Aida Vityala Hubeis Ake Wihadanto Akhiruddin Maddu Akhmad Fauzi Alexandi, Muhammad Findi Alfa Firdaus Ali Akil Parlindungan Siregar Amadeus Sanda Layuk Amelia Theresia Sirait Amrieh Samad Soemargo Amzul Rifin Ana Turyanti Andi Buchari Andra Devi Benazir Anggun Ratnawulan Ani Suryani Ani Suryani Anto Tri Sugiarto Arief Daryanto Arief Sabdo Yuwono Arief Tri Hardiyanto Arif Imam Suroso Arif Kurniadi Arif Kurniadi Aris Dwi Cahyanto Arman Arman Armansyah Halomoan Tambunan Aruddy Aruddy Aruddy Arya Hadi Dharmawan Asaduddin Abdullah Ascarya Ascarya Asep Taryana Asysyifa Vivekananda Aty Herawati Aulia Yulianti Wulandari Ayu Rahayu SARASWATI Aziz Darwis, Abdul Aziz, Lukmanul Hakim Baba Barus Bagus Sartono Bambang Juanda Bambang Mulyana Hermanto Bambang Pramudya Bambang Pramudya Noorachmat, Bambang Pramudya Bandono, Bayu Baransano, Michael Albert Bayu Bandono Bayu Bandono Bayu Bandono Bayu Bandono Bayu Bandono Bayu Bandono Bayu Bandono Bayu Widokartiko Beny Mulyana Sukandar Bintang Narotama Bonar M. Sinaga Bratakusumah, Deddy S. Budiatman Satiawihardja Bunasor Sanim Bustanul Arifin Bustanul Arifin Cahyana, Purwa Tri Casnan Casnan Casnan, Casnan Cecep Kusmana Cory Trisilawaty Cut Meurah Rosnelly Danang Harimurti Danika Reka Artha Danika Reka Artha Danti Astrini DB Hakim, DB Hakim Deddy S. Bratakusumah Deddy S. Bratakusumah Dede Iskandar Dedi Budiman Hakim Dedi Mulyadi2, Dedi Desak Putu Ristami Paramita Dhany Surya Ratana Dhita, Sasha Dian Fajarika, Dian Didin Hafidhuddin MS Dimas Dhanubrata Gasmara Dino Rimantho Djumali Mangunwidjaja Dodyk Pranowo Dominicus Savio Priyarsono Dondy A Setyabudi Drajat Martianto Dwi Andhayani Edi Mulyon Edvin Aldrian Edy Mulyono Eka Intan Kumala Putri Eka Khaerandy Oktafianto Eka Sudarmaji Elida Novita Elly Zunara Endang Prangdimurti Eriyatno . Erna Rusliana Muhamad Saleh Ernan Rustiadi Ernawati Alena Ersyad Perdana Perdana Erwin Riyanto Eti Rohaeti Etty Riani Fadjar Sofyar Fahmi, Achmad Gus Fajrian, Muhammad Aja FARAH FAHMA Fatma Aghitsni Fenny Salomina Jensanura Asyerem Ferry Ardiansyah Ferry Syarifuddin Firman Siregar Firman Siregar Fitri Kinasih Husnul Khotimah Fitria Yuliani Fitry Filianty Fran Sagita Widodo Frances Roi Seston Tampubolon Ganistie Furry Qisthina Gustan Pari Hadi Susilo Arifin Hadjomidjojo, Hartrisari Halimah Zatalini Handayani, Yulya Hardiyanto, Arief Tri Hari Wijayanto Harianto Harianto Harianto MS Hariyadi Hariyadi Hartrisari Hadjomidjojo Hartrisari Hardjomidjojo Hefni Effendi Helen Wiryani Helmi Adam Hendina Pratiwi Hendramiko Hendri Setiadi Hendro Sasongko Hendro Sasongko Hendro Sasongko Hendro Sasongko Hendro Sasongko Hendro Sasongko Heni Hasanah Heni Hasanah Henny Saraswati Hermanto Siregar Herry Frenky Nababan Hizir Sofyan I Gede Widya Anantayoga Idqan Fahmi Idrus, Yudi Avalon Ikhsana, Nadya Ramadhani Imam T Saptono Imam Teguh Saptono Indah Yuliasih Irawan, Toni Irfan Syauqi Beik Irmayanti Irmayanti Irmayanti Irmayanti, Irmayanti Irzaman, Irzaman Istingani Istingani Joyo Winoto, Joyo Kirbrandoko Kirbrandoko Kirbrandoko Kirbrandoko Koes Pranowo La Ode Abdul Rahman Laily Dwi Arsyanti, Laily Dwi Laily, Noer Lala M Kolopaking Lanang Bagus Satrio Liesbetini Haditjaroko Liesbetini Hartoto Lina Warlina LINAWATI HARDJITO Linda Karlina Sari Lukman M. Baga Lukytawati Anggaraeni Lukytawati Anggraeni M Firdaus, M Firdaus Machfud Machfud Machfud Machfud Mangara Tambunan Mangara Tambunan Marimin , Marimin Marimin Maulana, Tubagus N.A. Maulida Aulia Rezki Meiharriko Meika Syahbana Rusli Meika Syahbanna Rusli Mela Yunita Michael Albert Baransano Michael Albert Baransano Michael Silaen Miranti Miranti Moch Hadi Santoso Moch. Hadi Santoso Moch. Hadi Santoso Moh. 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