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Journal : E-Jurnal Akuntansi

The Role of Industry Sensitivity in Moderating The Effect of Environmental, Social, and Governance (ESG) on Financial Distress Ahmad Luthfi; Sari Atmini
E-Jurnal Akuntansi Vol. 35 No. 6 (2025)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Udayana

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24843/EJA.2025.v35.i06.p07

Abstract

This study aims to analyze and obtain empirical evidence on the effect of Environmental, Social, and Governance (ESG) on financial distress, and the role of industry sensitivity in strengthening the effect of ESG on financial distress. The research sample selected through purposive sampling consist of 108 Morningstar Sustainalytics rated companies listed on the Indonesia Stock Exchange in 2024. The results of the data analysis utilizing Moderated Regression Analysis (MRA) exhibit that ESG has a significant negative effect on financial distress, suggesting that the higher the ESG performance, the lower the risk of financial distress. However, contrary to the proposed hypothesis, industry sensitivity significantly weakens the negative effect of ESG on financial distress. Keywords: ESG; Financial Distress; Industry Sensitivity; Z-Score; ESG Rating.
Co-Authors Abdul Aziz Achmad Yusuf Afriyanti, Rafika Agung Firmansyah, Rico AHMAD FAISOL Ahmad Zamzami Ahmat Wakit Aini, Hana Nur Amali, Adityal Chisabul Amitama, Emilia Bunga Anggraini, Friska Aprilianti Nirmala S Apriyani, Mirna Ariwibisono, FX Bambang Sugiantoro Dedy Afrizal Denny Vitasari Dhomas Hatta Fudholi diana, ros Didik Sudyana Dila Erlianti Dina Purnama Sari Dirgantoro, Revandho Vianuara Dwi Kurnia Wibowo Eko Yuli Handoko Erinaldi, Erinaldi Fachrudin, Kurnia Arfiansyah Fadlullah, Shandy Yusril Fakhriansyah, Amru Rizal Fawzan, Ihsan fFaizal, Arif Fiasari, Sinta Nur Fitri Amaliyah Batubara Hafrida, Lis Halim, Muhammad Yusuf Hananfajri, Muhammad Hardika Dwi Hermawan Hasanah, Nur Uswatun Hijeriah, E. Maznah Hildawati Hildawati, Hildawati I Made Arie Widyasthana Wartana Putra Ibrahim Al khalil Ildrem Syafri Imam Riadi Indriasari, Ratna Irdina, Mutiara Karomah, Siti Kasnelly, Sri Khair, Otti Ilham Kholid Haryono Kurniawan, Andang Kusuma Dewa, Chandra Latif Syaipudin Lian Agustina Setiyaningsih Lionardo , Andries M. Said Marisa Permatasari, Marisa Maulana, Bagus Andrai Mawarni, Dinda Iga Meutia, Adinda Muhammad, Aldila Syariz Munawwaroh, Nasywa Zunaibatul Munjayyanah, Munjayyanah Mushaffa Asadilah, Ikhwan Alfi Mustikarini, Monika Grace Nilma, Nilma Nur Widiyasono Nur Widiyasono, Nur Nur ‘Azah Nurhalisa, Sabrina Nuril Anwar, Nuril Nurzabrina Anugrani Pakkaja, Ryan Alghazali Paputungan, Irving Vitra Poespitohadi, Wibisono Pratama, Syahrul Pravitasari, Norma Prayoga, Diki Purnamasari, Rika Afriyanti Putra, I Made Arie Widyasthana Wartana Ramadani, Erika Ramadiniyati, Suci Raniasa Putra Rika Handayani Rike Nursafitri Rini, Belinda Septia Rizky Achmad Almayda Almayda Romadhona, Frendi Yusroni Rosa, Nauviana Pita Salwa, Nikmatus Santicho, Desylo Sari Atmini Shaleha, Annisa Amalia Sitti Hajerah Hasyim Sobri, Kgs M. Sopaheluwakan, Ardhasena Sri Widayati Sumarni Sumarni Suroningsih Suroningsih, Suroningsih susi susi Tito Yuwono, Tito Tuharea, Ibnu Rohan Ulfa, Anisa Rifai Widarta, Agung Eka Yosika, Diana Rosa Yudi prayudi Zainul’ID, Ahmad Bagus Zikri Wahyuzi Zubizaretta, Zaid Dzulkarnain