PENGARUH ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) DISCLOSURE TERHADAP KINERJA KEUANGAN PERUSAHAAN PADA ENAM BANK TERBESAR DI INDONESIA

Authors

  • St. Dian Muthia Syahida Universitas Islam Negeri Alauddin Makassar Author
  • Nurul Qhalbi Universitas Islam Negeri Alauddin Makassar Author
  • Muhammad Fuad Agung Universitas Islam Negeri Alauddin Makassar Author
  • Jamaluddin Majid Universitas Islam Negeri Alauddin Makassar Author

Keywords:

The Influence Of Environmental, Social, And Governance (ESG) Disclosure On Company Financial Performance.

Abstract

This study aims to analyze the effect of Environmental, Social, and Governance (ESG) disclosure on the financial performance of banks in Indonesia. This study uses a quantitative approach with a causal associative design. The data used are secondary data sourced from the annual reports and sustainability reports of the six largest banks in Indonesia, namely BNI, BRI, Bank Mandiri, BTN, BCA, and CIMB Niaga, for the period 2020-2024. Data analysis was performed using multiple linear regression after meeting the classical assumption test. The results show that environmental and social disclosures do not significantly affect financial performance as measured by ROA. Conversely, governance disclosure has a positive and significant effect on ROA, indicating that governance quality plays a significant role in increasing bank profitability. Meanwhile, ESG disclosure as a whole does not show a significant effect on financial performance. Based on the results of the study, it can be concluded that ESG disclosure has not consistently improved the financial performance of banks in Indonesia. The governance dimension is the only aspect proven to contribute positively to ROA, while the environmental, social and ESG dimensions, in aggregate, tend to be neutral on profitability. These findings indicate that ESG disclosures at large banks in Indonesia still have the potential to function as a legitimacy and compliance mechanism, rather than as a substantive economic value creation strategy.

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References

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Published

2025-12-19

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How to Cite

PENGARUH ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) DISCLOSURE TERHADAP KINERJA KEUANGAN PERUSAHAAN PADA ENAM BANK TERBESAR DI INDONESIA (St. Dian Muthia Syahida, Nurul Qhalbi, Muhammad Fuad Agung, & Jamaluddin Majid, Trans.). (2025). SIGARUDA JOURNAL: Jurnal Ilmiah Bidang Sosial, Ekonomi, Budaya, Teknologi Dan Pendidikan, 1(2), 459-467. https://ejournal.sociovisionary.com/index.php/garudajournal/article/view/157

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