Research Article
The Influence of Environmental, Social, and Governance Factors on Financial Performance: A Comprehensive Study on Corporate Diversity, Board Structure, and Transparency
@INPROCEEDINGS{10.4108/eai.9-9-2024.2359094, author={Rano Wijaya and Syaiful Hifni and Saprudin Saprudin}, title={The Influence of Environmental, Social, and Governance Factors on Financial Performance: A Comprehensive Study on Corporate Diversity, Board Structure, and Transparency}, proceedings={Proceedings of the 1st International Conference on Wetland for Sustainable Development Goals, ICWSDGs 2024, September 9th -- 10th, 2024, Banjarmasin, Indonesia}, publisher={EAI}, proceedings_a={ICWSDGS}, year={2026}, month={7}, keywords={esg roa environmental performance board diversity board size social disclosures}, doi={10.4108/eai.9-9-2024.2359094} }- Rano Wijaya
Syaiful Hifni
Saprudin Saprudin
Year: 2026
The Influence of Environmental, Social, and Governance Factors on Financial Performance: A Comprehensive Study on Corporate Diversity, Board Structure, and Transparency
ICWSDGS
EAI
DOI: 10.4108/eai.9-9-2024.2359094
Abstract
This research investigates how environmental, social, and governance (ESG) dimensions influence corporate financial performance, with particular emphasis on Return on Assets (ROA). Utilizing data from 190 publicly traded firms, the analysis examines the effects of environmental performance, board diversity, board size, and social disclosure on ROA. The results indicate a positive link between environmental performance and financial performance, whereas social disclosure and board size show limited impact. By contributing to the literature on ESG integration and corporate outcomes, the study provides actionable insights for executives and policymakers aiming to improve corporate governance. It further addresses potential directions for governance reforms, including optimizing board structures and reinforcing environmental oversight practices.
