FORUM EKONOMI: Jurnal Ekonomi, Manajemen dan Akuntansi
Vol. 27 No. 4 (2025): Oktober

From Amanah to Sustainability: CEO Power and ESG in Indonesia

Irani, Dina Ockta (Unknown)
Hendrawaty, Ernie (Unknown)
Hasnawati, Sri (Unknown)
Saputra, Adli Rikanda (Unknown)



Article Info

Publish Date
31 Oct 2025

Abstract

This study tests whether CEO power shapes ESG performance among Indonesian infrastructure firms. We assemble a balanced panel of 24 IDX issuers (2019–2023; 120 firm-years) from Refinitiv ESG and corporate disclosures. Random-effects regressions with robust errors model ESG on CEO tenure, ownership, and duality, controlling for size, leverage, and profitability. Results show CEO tenure is positively and significantly associated with ESG, suggesting experienced yet non-entrenched leadership advances sustainability. CEO duality exhibits a positive but insignificant coefficient, while CEO ownership is negative and insignificant. Model fit is modest (R²≈0.20), implying external forces and broader governance also matter. Findings align Islamic notions of amanah and maslahah: accountable, seasoned leadership better delivers stakeholder welfare through ESG, whereas concentrated personal control does not reliably improve sustainability

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Journal Info

Abbrev

FORUMEKONOMI

Publisher

Subject

Economics, Econometrics & Finance

Description

FORUM EKONOMI: Jurnal Ekonomi, Manajemen dan Akuntansi is a scientific journal that focuses on research and studies in the fields of economics, management, and accounting. This journal is published periodically four times a year, namely in January, April, July, and October. This journal is managed ...