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Journal : Journal of Enterprise and Development (JED)

The Impact of ESG Pillars on Banking Financial Performance in ASEAN-5 Countries Rizki, Muhammad Hilman; Putra, I Nyoman Nugraha Ardana
Journal of Enterprise and Development (JED) Vol. 6 No. 3 (2024): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v6i3.11720

Abstract

Purpose: This research analyzes the effect of ESG pillars on the financial performance (ROA) of banking companies in ASEAN-5 countries.Method: The study utilizes ESG data sourced from Thomson Reuters Eikon Refinitiv. The research population comprises 91 banks from ASEAN-5 countries, with a sample size of 25 banks selected for analysis. The observation period spans 2019 to 2023. Panel data regression analysis was conducted using Eviews 12 software to evaluate the data.Result: The findings reveal that, during the 2019–2023 period, the environmental and social pillars of ESG do not significantly impact the ROA of banking companies in ASEAN-5. However, the governance pillar demonstrates a significant positive relationship with ROA, indicating that corporate governance practices play a key role in enhancing the financial performance of banks in the region.Practical Implications for Economic Growth and Development: This study contributes to economic growth and development by emphasizing the critical role of corporate governance in improving the financial performance of banking firms in ASEAN-5. The findings suggest that robust governance practices can boost operational efficiency, attract investment, and enhance financial stability—factors essential for sustainable economic growth. Policymakers can leverage these insights to design targeted incentives that encourage banks to strengthen their governance frameworks, fostering a more resilient banking sector in Southeast Asia.
The Impact of ESG Pillars on Banking Financial Performance in ASEAN-5 Countries Rizki, Muhammad Hilman; Putra, I Nyoman Nugraha Ardana
Journal of Enterprise and Development (JED) Vol. 6 No. 3 (2024): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v6i3.11720

Abstract

Purpose: This research analyzes the effect of ESG pillars on the financial performance (ROA) of banking companies in ASEAN-5 countries.Method: The study utilizes ESG data sourced from Thomson Reuters Eikon Refinitiv. The research population comprises 91 banks from ASEAN-5 countries, with a sample size of 25 banks selected for analysis. The observation period spans 2019 to 2023. Panel data regression analysis was conducted using Eviews 12 software to evaluate the data.Result: The findings reveal that, during the 2019–2023 period, the environmental and social pillars of ESG do not significantly impact the ROA of banking companies in ASEAN-5. However, the governance pillar demonstrates a significant positive relationship with ROA, indicating that corporate governance practices play a key role in enhancing the financial performance of banks in the region.Practical Implications for Economic Growth and Development: This study contributes to economic growth and development by emphasizing the critical role of corporate governance in improving the financial performance of banking firms in ASEAN-5. The findings suggest that robust governance practices can boost operational efficiency, attract investment, and enhance financial stability—factors essential for sustainable economic growth. Policymakers can leverage these insights to design targeted incentives that encourage banks to strengthen their governance frameworks, fostering a more resilient banking sector in Southeast Asia.
Co-Authors Abdul Manan Abdul Mannan, Siti Sofiyah Akram, Akram Amir Tengku Ramly Andika Noviawan, Lalu Andika, Puput Anding Nugeraha Animah Animah Aprillia, Dea Ardian, Bahtiar Agung Arsana, I Dewa Putu Asnawi, Hammam Adian Ayu Putu Arie Dewanty Azizatul Farhaini B. Busaini, B. Baiq Dwi Apryana Eristanti Baiq Dwi Apryana Eristanti Baiq Nurul Suryawati Barry Alfian Biyanti, Achrelia Luluk Budi Santoso Budi Santoso Budi Santoso Dara Nida Utamie Dina Amalia Dwi Putra Buana Sakti Elin Erlina Sasanti Embun Suryani Endar Pituringsih Eriana Eriana Falen Sadewo Faturahman GA Sri Oktaryani Gani, Ramlah H. A. Hadi Mahmudi Hadi Mahmudi Hadi Mahmudi Hadi, Ahwan Hafiz Rahman Hanesfa Hairil Ihsan Hairun Niswati Hayatus Saadiah Heriani Heriani Hermanto Hermanto Hermanto Hermanto Hery Susanto Hery Susanto Hery Susanto Husnan, Lalu Hamdani I Dewa Gde Bisma I Dewa Gde Bisma I Dewa Gede Bisma I Dewa Gede Bisma I Gde Mandra I Gede Mandra I Made Adi Sayoga I Made Suartika I Putu Buda Yasa I Wayan Joniarta Ibrahim, Isra Dewi Kuntary Ida Ayu Putu Sri Widnyani Idha Novianti Ilham Ilham Ilham Maulana Akbar Imamah Imamah Irya Arisantika Hiqwan Iwan Kusmayadi Jainuddin Jainuddin Johan Satriajaya Johan Satriajaya Jurnal Pepadu Kadek Indah Estyari Kariani Febrianti Khaerul Anam Laila Wardani Lalu Hamdani Husnan Lancur Ruktipriangga Lilik Handajani Luthfiyana Adfanin Made Wijana Made Wijana, Made Masrun Masrun Milayati Milayati Moh. Yassir Araffat Muhamad Ali Imron Naila A.M Ni Luh Debby Maharani Eka Putri Ni Putu Ary Aryawati Ni Putu Vera Juliati Pratiwi Ningrum, Safitri Ade Noval, Khamada Novel, Khamada Nurdin Nurdin Nurmayanti, Siti Nurul Hidayatul Hikmah Nurul Syahraini Oktaryani, G. A. Sri Pramadani, Intha Daefa Putra, Ardi Wijaya Putra, Urief Arsani Atma Raden Bagus Faizal Irany Sidharta Raden Roro Dhiya Auliana Soesetio Raheni Raheni Rahman Rahman Ramadhan, Galang Baruna Rispawati, Dewi Riyan Satria Sirrulloh Jagat Rizki Fazrin Rizki, Muhammad Hilman Rizky Fathullah Saifullah Saifullah Saipul Arni Muhsyaf Sakti, Dwi Putra Buana Sardjijo Sardjijo Siti Aisyah Hidayati Siti Aisyah Hidayati Siti Julaeha Sovia Wulandari Sri Oktaryani Sudi hardi Sujadi Sujadi Sujadi Sujadi Sujadi Sujadi Sujadi Sujadi Sujadi Sujadi Sujadi Sujadi Sukendri, Nengah Sulaeman Sarmo Suryani, Embun Syarifuddin Syarifuddin Wardani, Linda Noviantika Yati Auliah Yolanda Sintiyani M Yosyana Kartin Yulia Zulfahni Yuma Yuma Zulbahri Zulbahri