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Journal : Journal of Research and Technology

Managerial Ability and ESG Performance: A Panel Data Analysis of Non-Financial Companies on The Indonesia Stock Exchange (2018-2021) Bramanti, Geodita Woro; Hakim, Andi; Ninglasari, Sri Yayu; Wibawa, Berto Mulia; Nareswari, Ninditya; Kunaifi, Aang; Handiwibowo, Gogor Arif
Journal of Research and Technology Vol. 10 No. 1 (2024): JRT Volume 10 No 1 Juni 2024
Publisher : 2477 - 6165

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55732/jrt.v10i1.1373

Abstract

The rising implementation of Environmental, Social, & Governance (ESG) practices by companies indicates a growing commitment to responsible operations. The surge in assets allocated to ESG-focused ETFs is evident, as global investments have grown to $391 billion by 2021, a substantial increase from a mere $5 billion in 2006. Furthermore, Indonesia has witnessed a substantial surge in the number of investors who are actively engaged with companies that comply with ESG criteria. The efficacy of implementing ESG practices is intricately linked to the proficiency and expertise of managers, particularly in their decision-making and disclosure strategies. This study employed panel data regression methods to examine data from 825 non-financial companies that were publicly traded on the Indonesia Stock Exchange between 2018 and 2021. The insights were acquired utilizing the Fixed Effect Model methodology. The results indicate that the proficiency of managers does not exert a noteworthy influence on the ESG performance of companies that prioritize short-term financial benefits and exhibit limited understanding of ESG concerns, especially in sectors other than energy. Hence, it is imperative to foster effective leadership to steer companies towards holistic and sustainable strategies that transcend immediate gains, while prioritizing enduring impact and societal responsibility.
Co-Authors Aang Kunaifi Abriant, Sharda Achmad Muklason Ade Ana Pratiwi Adhyra Widyanti Adi Suryani Adi Suryani, Adi Adisya Resti Rahmadanti Ahmad Muklason Akhmad Muklason Akhmad ‘Izzul ‘Arobi Alyaa Zalfaa Komara Putri Anandita Ade Putra Anandita Ade Putri Anandita Ade Putri Andi Hafsah Andi Hakim Anindya Hayu Widyadhini Anna Maria Tri Anggraini Annisa Deaneke Prabowo Putri Ardiantono, Dewie Saktia Azalia Putri Cahyaning Rahmani Azizah Yulia Safitri Azmil Chusnaini Bahalwan Apriyansyah Baihaqi, Imam Bella Harum Ashari Bhawika, Gita Widi Bramanti, Geodita Woro Bramantya Yoga Widyaswara Claresta Dwi Pranindya Dendy Ramadhan Dendy Ramadhan Dendy Ramadhan Devia Virena Dewie Saktia Ardiantono Dewie Saktia Ardiantono Dewie Saktia Ardiantoro Durman, Thedosia Yunita Endarko Endarko Fakhri Anggara Fakhri Anggara Faras Pramesti Gaby Olivia Djaswadi Geodita Woro Bramanti Gita Widi Bhawika Gondo Irawan Gondo Irawan, Gondo Grisna Anggadwita Gultom, Liza Khairunnisa Hakim, Muhammad Saiful Handiwibowo, Gogor Arif Heni Agustina Ibnu Fadil Maddarangan Iwan Vanany Janti Gunawan Karya, Denis Fidita Kevin Rezananta Purnomo Krisnayanti Aditasari Kunaifi, Aang Maharsyah, Aburizal Mahendra Wardhana, Mahendra Malvin Piero Malvin Piero Mardhotillah, Rachma Rizqina Mathias Rainaldo Mathias Rainaldo Maydawati Fidellia Gunawan Meutia Fatha Aulia Moch. Afif Muhggni Labib Mohamad Yusak Anshori Muhammad Fadel Yulian Maulido Muhammad Fadillah Aryanto Muhammad Fadillah Aryanto, Muhammad Fadillah Muhammad Hafizh Prayogo Muhammad Rafli Muhammad Ridho Ar-Robi Nabila Sarita Putri Nareswari, Ninditya Ni Putu Cista Deviutami Sukma Ninditya Nareswari Ninditya Nareswari Nisrina Arieza Rahmadita Noer, Lissa Rosdiana Nofia Ulfah Ramadhani Noriko Agnita Masroeri Nugroho Priyo Negoro Nurbaeti Nurbaeti Nurhalima, Alidha Nuzulfah V Pertiwi Pranindyasari, Chelsia Puti Sinansari Putri Utami, Sahwa Rachma Rizqina Mardhotillah Rahma, Rais Akbar Rahmawati, Deti Rahmawati, Deti Raudina Salma Resi Octovianisa Resi Octovianisa Putri Ribka Anintha Miyagi Ribka Anintha Miyagi Rifqi Soedjono, Muhammad Rizki Amalia Elfita Rizqina Mardhotillah, Rachma Rofifah, Jihan Sabirin, Ahmad Sabrina, Shellyana Kholifatul Safira, Anya Saiful Hakim, Muhammad Salasatri Rafaa Dinni Satria Fadil Persada Satria Fadil Persada Sa’adah, Silviana Khalilatus Siska Lusia Putri Siti Zahrok Soedarso Soedarso Soedarso Soedarso Soedarso Soedarso Soedarso Soedarso, Soedarso Sri Yayu Ninglasari Sugihartanto, Mushonnifun Faiz Syarief Nur Husin Syarifa Hanoum Syarifa Hanoum Syarifa Hanoum Tarmizi Ihza Tri Deviasari Wulan Widyananda, Cepryana Sathalica Yani Rahmawati Yani Rahmawati Ywang Nara Pragnya