ESG Performance, Financial Ratios, Stock Prices, and Dividend Payments: Manufacturing and Energy Companies

Siti Nur Aisyah (Management Study Program, Nusa Putra University)
Ana Yuliana Jasuni (Management Study Program, Nusa Putra University)
Febri Wulandari Ansori (Management Study Program, Nusa Putra University)
Agung Maulana (Sunway Business School, Sunway University)

The Eastasouth Management and Business
Vol. 4 No. 03 (2026): The Eastasouth Management and Business (ESMB)

Industrialization has led to an increase in environmental problems, resulting in higher demands for companies to adopt Environmental, Social, and Governance (ESG) principles. ESG practices involve a trade-off for companies between ESG performance, which requires large investments and has the potential to sacrifice shareholder profitability in the short term. This study aims to examine the influence of ESG performance, profitability ratios Return on Assets (ROA) and Return on Equity (ROE), and closing stock price on the Dividend Payout Ratio (DPR) for manufacturing and energy companies with high emissions in Indonesia from 2018 to 2023. The model used is panel data regression with a random effects approach. The results show that only ROE and the Governance (G) pillar have a significant positive effect on DPR, while the other variables are not significant. These findings indicate that dividend policy is still profit-based and that governance influences dividend policy considerations.