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The Influence of Environmental, Social, and Governance (ESG) Disclosure on Financial Performance Nyoman Cantika DEWI; Ida Ayu SURASMI; Komang Adi Kurniawan SAPUTRA
International Journal of Environmental, Sustainability, and Social Science Vol. 6 No. 1 (2025): International Journal of Environmental, Sustainability, and Social Science (Jan
Publisher : PT Keberlanjutan Strategis Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38142/ijesss.v6i1.1315

Abstract

The banking sector plays an instrumental role in maintaining the stability of the financial system through its crucial intermediary function between corporate entities and borrowers. Consequently, companies that actively engage in ESG disclosure tend to exhibit superior financial performance due to their ability to mitigate risks, enhance operational efficiency, and bolster their reputation. This study empirically examines the effect of environmental, social, and governance (ESG) disclosure on the financial performance of banking companies listed on the IDX for 2020–2023. Using purposive sampling, 96 companies were selected. Multiple linear regression analysis was applied. The results indicate that Environmental Disclosure has a positive and significant effect on Financial Performance, with a significance value of 0.000 < 0.05 and a positive regression coefficient of 4.134. Similarly, Social Disclosure positively and significantly affects Financial Performance, with a significant value of 0.0008 < 0.05 and a positive regression coefficient of 4.233. Governance Disclosure also has a positive and significant impact on Financial Performance, with a significance value of 0.0001 < 0.05 and a positive regression coefficient of 4.021. The Adjusted R² value of 0.568 indicates that 56.8% of financial performance is influenced by Environmental, Social, and Governance Disclosure, the remaining 43.2% is explained by external factors outside of this research.
Co-Authors A.A. Ayu Erna Trisnadewi A.A. Ketut JAYAWARSA A.A. Sri PURNAMI AA Krisna Murti Ahmad Jupri Akbar, Cahyo Aditya Anak Agung Ayu Erna Trisnadewi Anak Agung Gde Putu Widanaputra Anantawikrama Tungga Atmadja Anggiriawan, Putu Budi Anggiriawan, Putu Budi ANGGRENI, Ni Kadek Dwi Ayu Ari Surya Darmawan ARIENATA, Ketut Yoga Widiyasa Aulia Fuad Rahman Ayu Aryista Dewi Bambang Subroto Bareto, Carlos Afonso Billah, Septiana Nur Azizah Budiarta, Luh Gede Rahayu Citraresmi, Luh Diah Cok Istri Ratna Sari Dewi Cokorda Krisna Yudha Darma, I Gede Wira Datrini, Luh Kade Dewi, Luh Gede Kusuma Dewi, Putu Eka Dianita Marvilianti DEWI, Ririn Oktavia Citra Dharmawan, Nyoman Ari Surya EKAJAYAINT, L.G.P. Sri Ekajayanti, L.G.P Sri Ekajayanti, L.G.P. Sri Ekajayanti, L.G.P. Sri Ernawati Ernawati Erwin Saraswati Faoziyah, Suhaebatul Fawatissuwari, Anis Gde Deny Larasdiputra Gede Mandirta Tama Gustavo, Alexandro Gustina, Nila Hakim, Muhammad Qolbun Haryanto Haryanto Hidayati, Cita Rizqi Hilman Ahyadi I Gede Arya Wigarba I Gede Surya Pratama I Ketut Darma I Ketut Puja Wirya Sanjaya I Komang Putra I Made Sara I Nyoman Gede Maha Putra I Nyoman Sutapa I Wayan Rupa I Wayan Werasmana Sancaya Ida Ayu Surasmi Ida Ayu SURASMI Ida Bagus Nyoman Udayana Ida Bagus Udayana Putra Ida I Dewa M. Manik Sastri Immy Suci Rohyani Isrowati Isrowati, Isrowati Jayawarsa , Anak Agung Ketut Jayawarsa, A. A. Ketut Jayawarsa, A.A. Ketut Jayawarsa, Anak Agung Ketut Jeki Trimarstuti Kadek Dita Dwi Apsari Kawisana, Putu Gede Wisnu Permana Kawisana, Putu Gede Wisnu Permana Kawisana, Putu Gede Wisnu Permana Kunto Aji Wibisono L.G.P Sri Ekajayanti L.G.P. Sri Ekajayanti L.G.P. Sri Ekajayanti L.G.P. Sri Ekajayanti Luh Diah Citraresmi Luh Gede Kusuma Dewi Luh Gede Rahayu Budiarta Luh Kade Datrini Luh Putu Lusi Setyandarini Surya Made Aristia Prayudi Made Sudarma Manuaba, I. B. Made Putra Murti, AA Krisna NARINDRA, A. A. Ngurah Mayun NARINDRA, A.A. Ngurah Mayun Narindra, Ngurah Mayun Ni Made Intan Priliandani, Ni Made Intan Ni Made Rai Juniariani Ni Nengah Apriliani Ni Nyoman Dita Mutiasari Ni Putu Intan MELANI Noordin, Noorliza MD. Nyoman Cantika DEWI PRAMAISWARI, Made Adinda Anugrah Deva Pramartha, I Made Aditya Prasetya, I Kadek Doni Wira PRATIKA, I Gede Candra Adi Putra, Hengki Adriyan Putra, I Gst. B. Ngr. P. Putra, Ida Bagus Gede Parama putri , erika aprilia putri, erika aprilia Putu Ayu Sita Laksmi Putu Budi Anggiriawan Putu Budi Anggiriawan Putu Dian Pradnyanitasari Putu Dian Pradnyanitasari Putu Gede Wibi PREDANA Putu Gede Wisnu Permana Kawisana Putu Yudha Asteria Putri Rachmat Pramukty Rahayu, Rachmawati Noviana Randa, Mohammad Awi Reda Rini Kurnia, Rini Riza Alfita SANCAYA, Wayan Werasmana SANJAYANI, Made Wulan Guna Harta Santini, Ni Made SARI, Kadek Ayu Kristina Indah Selamet, I Ketut septiana, nurazizahbillah Sunitha Devi Supardiono, Supardiono Surasmi, Ida Ayu Suriani, Ni Nyoman Syed Gulam MUSTAFA Trisnadewi, A.A. Ayu Erna Trisnadewi, A.A. Ayu Erna Trisnadewi, AA Ayu Erna Ulum, Miftachul Wahyuni, Elisa Darmasari Waqas Ahmad WATTO WIDJAYANTI, Putu Feby Silvia