Environmental issues have gained quite attention in recent years. Many scientists believe that sustainability is one of many options that can reduce the environmental problems. Drawn by the importance of sustainability aspects while doing business, this study aims to investigate the effect of environmental, social and governance (ESG) disclosure on company performance, moderated by competitive advantage. This study used a sample of 52 publicly listed companies on the Indonesia Stock Exchange that consistently disclose their ESG scores between 2015-2019. This research used panel data which is processed using random effect model data. The results of this study indicate that ESG disclosure has a negative impact on company performance. When the moderating variable, competitive advantage, are introduced in the model, ESG disclosure has a positive impact on company performance, but it is insignificant. Our results showed the implementation of ESG in Indonesia is still very low and shed light the lack of governance by the government and the financial authorities.
|Journal||IOP Conference Series: Earth and Environmental Science|
|Publication status||Published - 14 Dec 2021|
|Event||2nd International Symposium of Earth, Energy, Environmental Science and Sustainable Development, JEESD 2021 - Jakarta, Virtual, Indonesia|
Duration: 25 Sep 2021 → 26 Sep 2021