PENGARUH KINERJA ENVIRONMENTAL , SOCIAL, AND GOVERNANCE (ESG) TERHADAP KINERJA KEUANGAN PERUSAHAAN DI INDONESIA

The purpose of this study is to investigate the influence of ESG disclosures on financial performance that operates in a company listed in Indonesia Stock Exchange (IDX) for which tested in period 2016 – 2024. ESG is an important measure for corporate sustainability and social responsibility that affects investors' perception on firm performance. Financial performance is evaluated with three key indicators: Return on Assets (ROA), Return on Equity (ROE) and Tobin´ Q. Employing the panel regression analysis, then adopting the fixed effects, random effects and common effects models, the study concludes that there is no evidence for ESG to influence a company´s financial performance within short-term effects. These results indicate that the companies’ ESG disclosures and practices in Indonesia have not directly affected their financial performance. Yet ESG practices continue to carry significance as part of corporate governance and relationships with stakeholders even if their economic effects are longer term (not registering in terms of financial indicators over the study period).