Novi Anri
Master of Management Study Program, Faculty of Economics and Business, University of Indonesia, Depok, Indonesia

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ESG Performance on Investment-Cash Flow Sensitivity: Case Study of Non-Financial Companies Listed on the Indonesian Stock Exchange Novi Anri; Cynthia Afriani Utama
Quantitative Economics and Management Studies Vol. 5 No. 1 (2024)
Publisher : PT Mattawang Mediatama Solution

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35877/454RI.qems2323

Abstract

This research aims to analyze the influence of ESG performance on Investment - Cash Flow Sensitivity of non-financial companies listed on the Indonesia Stock Exchange for the 2017-2022 period. ESG performance was measured using ESG ratings from Sustainalytics' ESG Research and Ratings, obtained from the Bloomberg Terminal database. Testing process was carried out on 50 registered non-financial companies in Indonesia for six years with a total of 300 observations obtained through purposive sampling techniques. The results of research employed panel balance data and the OLS method found that there are still phenomena Investment – Cash Flow Sensitivity occurred and good ESG performance could reduce Investment – Cash Flow Sensitivity. Thus, it can be indicated that companies implementing good ESG performance can more easily obtain funding sources.