Peran Good Corporate Governance dalam Hubungan Profitabilitas, Risiko, dan Ukuran Perusahaan terhadap ESG

Mira  Falatifah; Megawati  Oktorina; Vincensius Alfrindo  Herwibowo

doi:10.33395/owner.v10i4.3536

Authors

Mira Falatifah Swiss German University
Megawati Oktorina
✉ Corresponding author: megawati.okt@atmajaya.ac.id Universitas Katolik Indonesia Atma Jaya
Vincensius Alfrindo Herwibowo Universitas Katolik Indonesia Atma Jaya

DOI:

https://doi.org/10.33395/owner.v10i4.3536

Abstract

This study aims to examine the effect of internal company characteristics, namely profitability, company risk, and company size, on Environmental, Social, and Governance (ESG) performance, as well as the moderating role of Good Corporate Governance (GCG). ESG has become an important indicator of corporate sustainability and long-term business performance, particularly in emerging markets where companies are increasingly expected to adopt sustainable and transparent business practices. This research employs a quantitative approach using secondary panel data from companies listed on the Indonesia Stock Exchange (IDX) during the 2016–2023 period. The data were collected from annual reports, sustainability reports, and the Refinitiv database, and analyzed using panel data regression with a fixed effect model and Moderated Regression Analysis (MRA). The findings indicate that profitability and company risk have a positive and significant effect on ESG performance, suggesting that companies with stronger financial capabilities and higher risk exposure tend to strengthen ESG implementation as part of their sustainability and risk management strategies. Meanwhile, company size does not significantly affect ESG performance, indicating that larger firms do not necessarily demonstrate better sustainability practices. The results also show that GCG significantly moderates the relationship between profitability and ESG as well as between company risk and ESG, but does not moderate the relationship between company size and ESG. These findings emphasize the importance of effective corporate governance in supporting sustainability strategies and improving ESG performance, particularly in the context of emerging markets such as Indonesia.

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