Pengaruh Pengungkapan ESG Performance, CEO Tenure dan Industry Sensitivity terhadap Financial Distress pada Perusahaan yang Terdaftar di BEI

This study aims to examine the effect of ESG performance, CEO tenure, and industry sensitivity on financial distress in non-financial companies listed on the Indonesia Stock Exchange during the period 2019–2023. Financial distress is measured using the Altman Z-Score model as an indicator of the company’s financial health. This study employs a quantitative approach using secondary data obtained from annual reports and sustainability reports. The data are analyzed using multiple linear regression with robust standard error to address potential violations of classical assumptions. The results show that ESG performance, CEO tenure, and industry sensitivity simultaneously influence financial distress. Partially, ESG performance has a positive but insignificant effect, indicating that higher ESG performance tends to improve the company’s financial condition, although the effect is not statistically strong. CEO tenure does not have a significant effect on financial distress, while industry sensitivity has a negative and significant effect, suggesting that companies operating in sensitive industries tend to have better financial stability. This study implies that non-financial factors, particularly ESG performance and industry characteristics, play a role in influencing a company’s financial condition.