Abstract
This research aims to analyze the influence of ESG performance on Investment - Cash Flow Sensitivity of non-financial companies listed on the Indonesia Stock Exchange for the 2017-2022 period. ESG performance was measured using ESG ratings from Sustainalytics' ESG Research and Ratings, obtained from the Bloomberg Terminal database. Testing process was carried out on 50 registered non-financial companies in Indonesia for six years with a total of 300 observations obtained through purposive sampling techniques. The results of research employed panel balance data and the OLS method found that there are still phenomena Investment – Cash Flow Sensitivity occurred and good ESG performance could reduce Investment – Cash Flow Sensitivity. Thus, it can be indicated that companies implementing good ESG performance can more easily obtain funding sources.
| Original language | English |
|---|---|
| Pages (from-to) | 135-141 |
| Journal | Quantitative Economics and Management Studies |
| Volume | 5 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 18 Jan 2024 |
Keywords
- investment-cash flow sensitivity
- ESG performance
- company investment
- company ownership structure
- agency problem
- overinvestment
- asymmetric information
- underinvestment