Determinan Kinerja ESG: Peran Risiko Keuangan dan Ukuran Perusahaan dengan Profitabilitas sebagai Variabel Mediasi

Nona Jane Onoyi, Rike Setiawati, Diana Titik Windayati, Ely Kurniawati

Abstract


This study aims to examine the effect of financial risk and firm size on ESG performance, with profitability as a mediating variable, in high-emission manufacturing companies listed on the Indonesia Stock Exchange during the 2020–2024 period. A quantitative approach with an explanatory design was employed. The sample consists of 23 companies selected through purposive sampling, yielding 115 firm-year observations. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that firm size has a positive and significant effect on ESG performance and serves as the most dominant predictor. Financial risk (measured by the Altman Z-Score) has a positive and significant effect on profitability but does not significantly affect ESG performance. Firm size does not influence profitability, and profitability neither affects ESG performance nor mediates the relationships between financial risk or firm size and ESG performance. These findings indicate that ESG practices in Indonesia’s high-emission manufacturing sector are driven more by institutional pressures and legitimacy concerns than by internal financial conditions. The study reinforces the relevance of stakeholder theory and offers implications for firms and policymakers in promoting sustainable business practices.

Keywords


ESG performance, financial risk, firm size, profitability, high-emission manufacturing

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DOI: http://dx.doi.org/10.33087/ekonomis.v10i2.2962

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