Research Article
The Effect of Environmental, Social, Governance (ESG) Disclosure and Green Technology on Financial Performance
@INPROCEEDINGS{10.4108/eai.26-9-2023.2350708, author={Andini Meldia Sukma and Nurul Salsabila Hany and Tommy Andrian}, title={The Effect of Environmental, Social, Governance (ESG) Disclosure and Green Technology on Financial Performance}, proceedings={Proceedings of the 7th International Research Conference on Economics and Business, IRCEB 2023, 26 September 2023, Malang, East Java, Indonesia}, publisher={EAI}, proceedings_a={IRCEB}, year={2024}, month={11}, keywords={environmental social and governance (esg) green technology financial performance}, doi={10.4108/eai.26-9-2023.2350708} }- Andini Meldia Sukma
Nurul Salsabila Hany
Tommy Andrian
Year: 2024
The Effect of Environmental, Social, Governance (ESG) Disclosure and Green Technology on Financial Performance
IRCEB
EAI
DOI: 10.4108/eai.26-9-2023.2350708
Abstract
This study aims to determine the effect of implementing environmental, social, governance and green technologies on company’s financial performance. This study uses a quantitative approach and panel data from 100 companies consisting of 48 companies in the consumer cyclical sector and 52 companies in the consumer non-cyclical sector listed on the Indonesia Stock Exchange for the period of 2017-2021. The data analysis technique used is multiple linear regression using SPSS 23 as a test tool. The results showed that Environmental, Social and Governance had a positive effect on financial performance. Otherwise, Green Technology had negative effect on financial performance as proxied by Return on Asset and Return on Equity. This study implies that companies must maintain indicators that have a high impact on resource use, emissions, waste reduction, product responsibility and technological innovation to achieve the company's financial performance and corporate sustainability.
