ESG and Performance: Evidence from Food and Beverage Sector Munawwaratul Khasanah (a), Tito IM. Rahman Hakim(a*)- & Prasetyono (a)
a) Accounting Department, Faculty of Economics and Business, Universitas Trunojoyo Madura
Abstract
Purposes: This research aims to analyze the influence of environmental, social, and governance disclosure on the financial performance of food and beverage subsector companies listed on the Indonesian Stock Exchange from 2018 to 2022.
Methods: The research subjects were food and beverage subsector companies, and 35 observation data were selected using a purposive sampling method. The analysis tool used was Stata 14 software.
Results: The result of the research showed that environmental, social, and governance disclosure had no significant influence on financial performance in the food and beverage subsector.
Conclusion and suggestion: Disclosure of non-financial data does not affect the financial performance of food and beverage subsector companies, meaning that investors only consider it as additional information, so it is less considered by stakeholders when determining investment decisions in the company. The findings of this research verify that the quality of ESG disclosure in Indonesia is still low due to a lack of government regulation, so companies tend to disclose only modestly and not comprehensively in their core business strategies. So, it is recommended that companies, stakeholders, and the government jointly consider and place more focus on the importance of environmental, social, and governance disclosures.
Keywords: environmental- financial performance- food and beverage- governance- social
