Nafis Dwi Kartiko
Ministry of Finance of the Republic of Indonesia

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Empowering Green Innovation: How CEO and Firm-Level Factors Shape Sustainable Business Growth in Indonesia Nuraini Sari; Tri Ayu Astari; Pariang Siagian; Nafis Dwi Kartiko
Binus Business Review Vol. 16 No. 2 (2025): Binus Business Review
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/bbr.v16i2.13275

Abstract

Climate change, driven by global warming, is a critical global issue affecting air quality and the environment. In response, many companies are adopting sustainable practices such as green product innovation. The research examined the impact of CEO and firm-level factors on financial performance through green product innovation in the raw material-producing sector listed on the Indonesia Stock Exchange from 2020 to 2022. The research focused on five key variables: CEO education, gender, experience, firm size, and firm age, analyzing their effects on the adoption of green product innovation and subsequent impact on company growth and profitability. Secondary data were collected from the company's annual and sustainability reports using purposive sampling, resulting in a sample of 81 companies over three years. Data were analyzed using multiple linear regression and mediation tests. The results show that CEO gender and experience have a significant positive effect on green product innovation, while CEO education does not show a significant effect. Additionally, larger and older companies are more likely to implement green innovations due to their established resources and capacities. Green product innovation positively influences financial performance, reflected in increased sales and operational efficiency. These results suggest that both CEO and firm-level factors play a key role in driving sustainability initiatives that contribute to long-term business growth. The research provides valuable insights for companies aiming to enhance their sustainability strategies and for policymakers encouraging green innovation. Managerial implications point to the importance of fostering experienced leadership and leveraging company resources to support environmentally responsible innovation.
From risk to resilience: Ownership moderation in the geopolitical risk–cash holdings nexus of Indonesian banks NAFIS DWI KARTIKO
Jurnal Ikatan Sarjana Ekonomi Indonesia Vol 18 No 2 (2026): Agustus 2026
Publisher : Jurnal Ekonomi Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52813/jei.v18i2.773

Abstract

Purpose — This study examines the effect of geopolitical risk on bank cash holdings in Indonesia and investigates whether institutional, foreign, and government ownership moderate this relationship. Method — The empirical analysis employs System Generalized Method of Moments (System GMM) to address endogeneity inherent in dynamic panel models with lagged dependent variables. Serial correlation is diagnosed via the Arellano–Bond test, and instrument validity is confirmed through Hansen and Sargan tests. Findings — Geopolitical risk, including both perceived threats and realized geopolitical events, has a significant negative effect on bank cash holdings. The results also indicate persistence in banks’ cash policies. Institutional ownership positively affects cash reserves; however, its interaction with geopolitical risk is negative, suggesting that geopolitical pressures weaken the prudential role of institutional investors. Foreign and government ownership shows no significant direct or moderate effects. Implications — Bank managers and regulators should incorporate geopolitical exposure and ownership characteristics into liquidity risk assessment and cash management policies. Adaptive liquidity frameworks are necessary to balance financial resilience and intermediation efficiency during periods of heightened global uncertainty. Originality — This study provides new evidence on the joint influence of external geopolitical shocks and internal ownership structures on bank liquidity decisions in an emerging economy.