Governors
Vol. 3 No. 2 (2024): August 2024 Issue

The Influence of Environmental, Social, Governance and Capital Structure Performance on Financial Performance

Fajar, Kemaludin Rahmat (Unknown)
Effriyanti, Effriyanti (Unknown)



Article Info

Publish Date
30 Aug 2024

Abstract

This study aims to analyze the influence of Enviromental, Social and Governance (ESG), and capital structure on financial performace. This type of research is quantitative research with secondary data sources. The population in this study is financial sector companies listed on the Indonesia Stock Exchange (IDX) in 2018-2022. The sample selection method used in this study is purposive sampling wich undergoes  an outlier process, so that the final sample obtained is 10 companies. The result of the study shows that silmutaneously the variables of Enviromental, Social and Governance (ESG) and capital structure have an effect on financial performance. The result show that companies had high ESG scores and low capital structures can improve their financial performance. Then partially the Enviromental, Social and Governance (ESG) variables have an influence on financial performance. The result show that companies with high ESG scores have the potential to improve the company’s financial performance. Furthermore, the capital structure variable has no effect on financial performance. The result show that Bank companies with a large amount of debt cannot affect the company’s financial performance.

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Journal Info

Abbrev

governors

Publisher

Subject

Economics, Econometrics & Finance

Description

Governors is interdisciplinary in its scope and encourages submissions from any discipline or any part of the world which addresses any element of the aims of the journal. The journal encompasses the full range of theoretical, methodological, and substantive debates in the area of corporate ...