Environmental, Social, and Governance Performance and Investment Efficiency: The Energy Sector Indonesia

Authors

  • Afnei Ngan Billy Tumba Universitas Gadjah Mada

DOI:

https://doi.org/10.36982/jiegmk.v15i1.3963

Abstract

Environmental, Social, and Governance (ESG) has become an interesting issue in corporate sustainability reports in Indonesia, awareness of the importance of the environment in the business chain encourages companies in the energy sector in Indonesia to start implementing it, the impact of ESG strategies and operations on company performance is a topic of discussion in modern academic and business research today. Researchers also look at the efficiency of corporate investment. Companies in the energy sector are required to implement ESG in their business chain, what about the investment efficiency that occurs in energy sector companies that are directly involved in the issue of environmental problems caused in the company's operational activities. The purpose of this study is to analyze the effect of investment efficiency and ESG performance on company performance in the energy sector listed on the Indonesia Stock Exchange (IDX). The method is used the Hodrick-Prescott Filter to determine investment efficiency and ESG Score as data to see ESG performance. The samples used in this study are energy sector companies listed on the Indonesia Stock Exchange (IDX) from 2019-2023 that have ESG Score. The main result is the effect of ESG performance and corporate investment efficiency affect the performance of energy sector companies in Indonesia. The conclusion of this study will contribute to energy sector companies in Indonesia in the practice of implementing ESG and forming investment efficiency strategies in the business chain for company performance in Indonesia.

Keywords: ESG, investment efficiency, firm performance, hodrick-prescott filter.

Downloads

Published

2024-07-04

How to Cite

Tumba, A. N. B. (2024). Environmental, Social, and Governance Performance and Investment Efficiency: The Energy Sector Indonesia. Jurnal Ilmiah Ekonomi Global Masa Kini, 15(1), 43–48. https://doi.org/10.36982/jiegmk.v15i1.3963

Issue

Vol. 15 No. 1 (2024): Vol 15, No 1

Section

Articles

License

Copyright (c) 2024 Afnei Ngan Billy Tumba

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

 

Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.

 

LP2M Indo Global Mandiri University has the right to multiply and distribute the article and every author is not allowed to publish the same article that has been published in this journal.