The Influence of Environmental, Social, and Governance (ESG) Performance on Company Performance
DOI:
https://doi.org/10.35877/454RI.daengku1923Keywords:
Company Performance; ESG; InvestorAbstract
This study analyzes the effect of ESG performance on company performance in Malaysia public companies. The data sourced the Refinitiv Eikon in the 2021 period. The estimation of the data regression model can be determined in this study using Ordinary Least Square (OLS). The results of this study indicate that the higher the ESG score in a company, the company's performance will increase. Thus, ESG performance is considered to contribute to improving company performance. The analysis results can be used by management to make investment decisions on ESG whether it is worth the results, and for investors to be a consideration in determining their investment decisions.
References
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Indonesia stock exchange. (2022). What is ESG? . Https://Esg.Idx.Co.Id/What-Is-Esg .
Chen, S., Han, X., Zhang, Z., & Zhao, X. (2023). ESG investment in China: Doing well by doing good. Pacific Basin Finance Journal , 77 . https://doi.org/10.1016/j.pacfin.2022.101907
Hanafi, Muhammad, et al. (2009). Financial Statement Analysis .
Kim, R., & Koo, B. (2023). The impact of ESG rating disagreement on corporate values. Journal of Derivatives and Quantitative Studies . https://doi.org/10.1108/JDQS-01-2023-0001
Kumar, R. (2015). Valuation: Theories and concepts. Valuation: Theories and Concepts , 1–499. https://doi.org/10.1016/C2014-0-02718-9
Protect Forest. (2022). ESG: Definition, Criteria, and Strategy for Sustainable Investment .
Miles, JA (1982). Principles of corporate finance. Journal of Banking & Finance , 6 (2), 305–307. https://doi.org/10.1016/0378-4266(82)90040-1
Mohammad, WMW, & Wasiuzzaman, S. (2021). Environmental, Social and Governance (ESG) disclosure, competitive advantage and performance of firms in Malaysia. Cleaner Environmental Systems , 2 . https://doi.org/10.1016/j.cesys.2021.100015
Napoletano, E. (2021). Environmental, Social And Governance: What Is ESG Investing? Forbes , 1–6. https://www.forbes.com/advisor/investing/esg-investing/
PWC. (2017). Global Investor Survey . www.pwc.com/investorsurvey
Rahman, HU, Zahid, M., & Al-Faryan, MAS (2023). ESG and firm performance: Rarely explored moderation of sustainability strategy and top management commitment. Journal of Cleaner Production , 404 . https://doi.org/10.1016/j.jclepro.2023.136859
Rogers, S. (2023). What Is ESG Investing and Is It Profitable? Https://Finmasters.Com/Esg-Investing/#Gref .
Serra de Souza, D., & De Oliveira, T. (2023). Environmental, Social and Governance (Esg). Revista Direito e Sexualidade , 49–71. https://doi.org/10.9771/rds.v4i1.52207
WWF. (2014). Environmental, social and governance integration for banks: A guide to starting implementation . 96.
Zhao, C., Guo, Y., Yuan, J., Wu, M., Li, D., Zhou, Y., & Kang, J. (2018). ESG and corporate financial performance: Empirical evidence from China's listed power generation companies. Sustainability (Switzerland) , 10 (8). https://doi.org/10.3390/su10082607
Zhou, D., & Zhou, R. (2022). Esg performance and stock price volatility in public health crisis: Evidence from covid-19 pandemic. International Journal of Environmental Research and Public Health , 19 (1). https://doi.org/10.3390/ijerph19010202
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Published
2023-07-27
How to Cite
Kurniawan, M. (2023). The Influence of Environmental, Social, and Governance (ESG) Performance on Company Performance. Daengku: Journal of Humanities and Social Sciences Innovation, 3(4), 657–661. https://doi.org/10.35877/454RI.daengku1923
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