<![CDATA[This research aimed at investigating the impact of profitability on ESG performance with a moderating effect of earnings quality by taking Return on Assets (RoA) and Return on Equity (RoE) as proxies for profitability. This study applies panel data regression analysis with the STATA version 17 for case approximately 162 non-financial companies recorded in Indonesia Stock Exchange (IDX) at period time between 2018 and 2023 that was taken by purposive sampling. While profitability is broadly considered an indicator for a company’s financial performance, not all profitability measures tell us the same thing about ESG. The results suggest that there is no direct relationship between RoA and ESG performance. Nevertheless, moderated by earnings quality as it is, this makes the difference, with asset efficiency affecting ESG performance only under high-quality earnings. Second, RoE has a significant positive impact on ESGperformance without the moderation effect of earnings quality, suggesting that equitybased profitability enhances ESG performances via firm financial resources and stakeholders demands.]]>
Copyrights © 2026
