International Journal of Contemporary Accounting
Vol. 7 No. 2 (2025): December

ESG PERFORMANCE AND CEO CHARACTERISTICS AS DETERMINANTS OF CORPORATE BANKRUPTCY RISK

Mariska Ramadana (Accounting Department, Universitas Internasional Batam, Kepulauan Riau, Indonesia)
Kelly (Accounting Department, Universitas Internasional Batam, Kepulauan Riau, Indonesia)
Ivone (Accounting Department, Universitas Internasional Batam, Kepulauan Riau, Indonesia)
Tian Yu Tang Christina (Graduate Women Association - Singapore)



Article Info

Publish Date
28 Dec 2025

Abstract

This research explores how ESG disclosure, CEO power, and CEO overconfidence relate to corporate bankruptcy risk. Using a quantitative approach, the study analyzes secondary data from annual and sustainability reports of firms listed on the Indonesia Stock Exchange (IDX) through descriptive statistics, Pearson correlation, and multiple linear regression. The results show that ESG disclosure and CEO overconfidence are negatively associated with bankruptcy risk, suggesting that stronger sustainability engagement and proactive managerial behavior enhance corporate resilience. In contrast, CEO power does not exhibit a significant effect on CBR, indicating that its role may be contingent on governance context. Despite growing attention to ESG and executive characteristics, prior research has largely examined these factors separately, particularly in emerging markets. Addressing this gap, the study integrates ESG disclosure and CEO behavioral traits into a unified empirical framework to explain bankruptcy risk in Indonesia. The findings contribute to the ESG and upper echelons literature by highlighting the joint role of sustainability practices and executive behavior, while offering practical implications for investors, regulators, and corporate stakeholders in managing bankruptcy risk and promoting long-term financial stability.

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Journal Info

Abbrev

ijca

Publisher

Subject

Economics, Econometrics & Finance

Description

The International Journal of Contemporary Accounting is an international, peer-reviewed, and research published by the Lembaga Penerbit Fakultas Ekonomi dan Bisnis, Universitas Trisakti, or Economics and Business Publishing Institution, Faculty of Economics and Business, Trisakti University. IJCA ...