Pengaruh Environmental, Social, And Governance (ESG) Terhadap Kinerja Keuangan Dengan CEO Power Sebagai Variabel Moderasi Pada Perusahaan Sektor Energy Tahun 2021-2023
DOI:
https://doi.org/10.26740/jim.v14n1.p21-40Keywords:
ceo pay slice, ceo tenure, energy sector, esg, sustainabilityAbstract
This study investigates the impact of Environmental, Social, and Governance (ESG) disclosures on the financial performance of energy sector companies in Indonesia during the 2021–2023 period, with CEO Pay Slice and CEO Tenure serving as moderating variables. The analysis uses panel-data regression with Stata 17. The findings indicate that ESG disclosures do not have a significant direct effect on Return on Assets (ROA). However, moderating effects reveal more nuanced relationships. CEO Pay Slice negatively moderates the relationship between Social Disclosure and ROA, suggesting that higher CEO compensation concentration may weaken the financial benefits of social disclosure practices. In contrast, CEO Pay Slice does not moderate the relationship between Environmental or Governance Disclosure and firm performance. Meanwhile, CEO Tenure strengthens the positive influence of Environmental Disclosure on ROA but weakens the relationship between Social Disclosure and ROA. CEO Tenure does not moderate the relationship between Governance Disclosure and financial performance. Overall, the results emphasize the importance of leadership structure and managerial incentives in shaping the effectiveness of ESG disclosures in enhancing firm performance
References
Al Amosh, H., Khatib, S. F. A., & Ananzeh, H. (2023). Environmental, Social and Governance impact on financial performance: evidence from the Levant countries. Corporate Governance (Bingley), 23(3), 493–513. https://doi.org/10.1108/CG-03-2022-0105
Alareeni, B. A., & Hamdan, A. (2020). ESG impact on performance of US S&P 500-listed firms. Corporate Governance (Bingley), 20(7), 1409–1428. https://doi.org/10.1108/CG-06-2020-0258
Aryawati, N. P. A., & Suardana, I. K. P. (2021). Pengungkapan Tanggung Jawab Perusahaan Sebagai Bentuk Komunikasi Citra Perusahaan. Jurnal Ilmiah Komunikasi Hindu, 3(No. 2), 547–556. https://doi.org/10.53977/sadharananikara.v3i2.340
Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review, 22(22), S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
Bebchuk, L. A., Cremers, K. J. M., & Peyer, U. C. (2011). The CEO Pay Slice. Journal of Financial Economics, 102(11), 199–221. https://doi.org/10.1016/j.jfineco.2011.05.006
Bebchuk, L. A., & Fried, J. M. (2004). Power And Pay. Pay Without Performance: The Unfulfilled Promise Of Executive Compensation. Journal of Financial Economic. Harvard Law School,and Research Associate, National Bureau of Economic Research. https://ssrn.com/abstract=537783
Bhaskar, R., Bansal, S., Abbassi, W., & Pandey, D. K. (2023). CEO compensation and CSR: Economic implications and policy recommendations. Economic Analysis and Policy, 79(July), 232–256. https://doi.org/10.1016/j.eap.2023.06.016
Buallay, A. (2019). Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), 98–115. https://doi.org/10.1108/MEQ-12-2017-0149
Carnahan, S., Agarwal, R., Campbell, B., & Franco, A. (2010). The Effect Of Firm Compensation Structures On Employee Mobility And Employee Entrepreneurship Of Extreme Performers. Atlanta Competitive Advantage Conference 2010 Paper, 1–40.
Chang, N. C. (2016). Internal Corporate Social Responsibility and Performance : A Study of Publicly Traded Companies. Brazilian Administrastion Review, 13(No. 4), 1–19. https://doi.org/http://dx.doi.org/10.1590/1807-7692bar2016160083
Chen, W. (Tina), Zhou, G. (Stephen), & Zhu, X. (Kevin). (2019). CEO Tenure and corporate Social responsibility performance. Journal of Business Research, 95(August), 292–302. https://doi.org/10.1016/j.jbusres.2018.08.018
Choi, J. H., Kim, S., & Lee, A. (2020). CEO Tenure, corporate Social performance, and corporate Governance: A Korean study. Sustainability (Switzerland), 12(1), 1–17. https://doi.org/10.3390/SU12010099
Clarkson, P., Li, Y., Richardson, G., & Tsang, A. (2019). Causes and consequences of voluntary assurance of CSR reports: International evidence involving Dow Jones Sustainability Index Inclusion and Firm Valuation. Accounting, Auditing and Accountability Journal, 32(8), 2451–2474. https://doi.org/10.1108/AAAJ-03-2018-3424
Coelho, I., Cilaine, G., Filho, F., & Rubens, J. (2019). Effects of the Corporate Governance Practices on the Executive Compensation. International OFEL Conference on Governance, Management and Entrepreneurship, 4(5), 41–58. https://doi.org/https://hdl.handle.net/10419/196072
Cordeiro, J. J., & Sarkis, J. (2007). Why do some us firms link environmental performance to executive compensation? Does it matter? Academy of Management Annual Meeting Proceedings, 585, 395–5793. https://doi.org/10.5465/ambpp.2007.26536345
De Angelis, D., & Grinstein, Y. (2020). Relative performance evaluation in CEO compensation: A talent-retention explanation. Journal of Financial and Quantitative Analysis, 55(7), 2099–2123. https://doi.org/10.1017/S0022109019000504
Dimic, N., & Vähämaa, S. (2024). Religiosity and corporate Social responsibility : A study of firm-level adherence to Christian values in the United States. Corporate Social Responsibility and Enviromental Management, 31(July 2023), 396–413. https://doi.org/10.1002/csr.2576
Donovan, G. O. (1999). Environmental Disclosures in the annual report. Accounring, Auditing & Accountability Journal, 15(No. 3, Tahun 2002), 344–371. https://doi.org/10.1108/09513570210435870
Dowling & Pfeffer, J. (1975). Organizational Legitimacy : Social Values And Organizational Behavior Between The Organizations Seek To Establish Congruence. 18(1), 122–136. https://doi.org/10.2307/1388226
Frecilia Adenina, A., Ekonomi, F., Bisnis, D., & Lampung, U. (2024). Analysis Of The Influence Of Environmental, Social, Governance (ESG) Disclosure and Research & Development Intensity On Financial Performance In Manufacturing Companies Listed On The Indonesia Stock Exchange. Management Studies and Entrepreneurship Journal, 5(2), 9251–9269. http://journal.yrpipku.com/index.php/msej
Fukutomi, G. D. S. (1991). the Seasons of a Ceo ’ S Tenure. The Academy of Management Review, 16(4), 719–742. https://doi.org/https://doi.org/10.2307/258978
Ghazali, A. (2020). Pengaruh Pengungkapan Environmental , Social , and Governance ( ESG ) Terhadap Tingkat Profitabilitas Perusahaan ( Studi pada Perusahaan Sektor Infrastruktur yang Terdaftar di Bursa Efek Indonesia ). Prosiding SNAM PNJ.
Greene, W. H. (2012). Econometric Analysis (7th ed). NJ: Prentice Hall.
Hasibuan, M. E., Gusti, N., & Wirawati, P. (2020). Open Access The Effect Of Financial Performance , Good Corporate Governance, Corporate Social Responsibility On Company Value ( Empirical Study On Food And Beverage Companies Listed On The Indonesia Stock Exchange. American Journal of Humanities and Social Sciences Research. 1 (4), 391–397. http://dx.doi.org/10.53697/emak.v2i4.269
Hijazi, H. A. (2021). The Impact of Applying Good Governance Principles on Job Satisfaction among Public Sector Employees in Jordan. Open Journal of Business and Management, 09(01), 1–31. https://doi.org/10.4236/ojbm.2021.91001
Hill, W. L. (1992). Stakeholder-agency theory charles w. l. hill thomas. Journal of Management Studies, 26(No. 2, March 1992), 0022–2380. https://doi.org/10.1111/j.1467-6486.1992.tb00657.x
Husada, E. V., & Handayani, S. (2021). Pengaruh Pengungkapan Esg Terhadap Kinerja Keuangan Perusahaan (Studi Empiris Pada Perusahaan Sektor Keuangan Yang Terdaftar Di Bei Periode 2017-2019). Jurnal Bina Akuntansi, 8(2), 122–144. https://doi.org/10.52859/jba.v8i2.173
Javeed, S. A., & Lefen, L. (2019). An analysis of corporate Social responsibility and firm performance with moderating effects of CEO Power and ownership structure: A case study of the manufacturing sector of Pakistan. Sustainability (Switzerland), 11(1). https://doi.org/10.3390/su11010248
Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1017/CBO9780511817410.023
Kong, X. (2017). Relationship between CEO Pay Slice and Firm Performance. SSRN Electronic Journal, 4(24), 1–25. https://doi.org/10.2139/ssrn.2957769
Larasati Pingkan C.H, & Sri Trisnaningsih. (2024). Application Of Business Ethics and Good Corporate Governance To Company Financial Performance. International Journal of Management Research and Economics, 2(3), 244–254. https://doi.org/10.54066/ijmre-itb.v2i3.2042
Li, K., Lin, T. Y., & Zhu, G. (2024). The effect of CEO’s compensation in driving corporate ESG greenwashing: Evidence from China. PLoS ONE, 19(10 October), 1–22. https://doi.org/10.1371/journal.pone.0312247
Martínez-Ferrero, J., Ramón-Llorens, M. C., & García-Meca, E. (2024). CEO narcissism and ESG misconduct. Research in International Business and Finance, 69(March 2023). https://doi.org/10.1016/j.ribaf.2024.102284
Maulida Nur Safriani, & Dwi Cahyo Utomo. (2024). Pengaruh Environmental, Social dan Governance (ESG) Disclosure terhadap Kinerja Perusahaan. Bandung Conference Series: Accountancy, 4(1), 300–306. https://doi.org/10.29313/bcsa.v4i1.11584
Merici, A., Aboladaka, J., & Neonufa, G. F. (2023). Environmental, Social dan Governance (ESG) dan Kinerja Keuangan Perusahaan Publik di Indonesia. Owner: Riset & Jurnal Akuntansi, 7(2), 1186–1195. https://doi.org/10.33395/owner.v7i2.1371
Mumtazah, F., & Purwanto, A. (2020). Analisis Pengaruh Kinerja Keuangan Dan Pengungkapan Lingkungan Terhadap Nilai Perusahaan. Diponegoro Journal of Accounting, 9(2), 1–11. http://ejournal-s1.undip.ac.id/index.php/accounting
Mutiara N, I., Oktaria, E. T., & Sari, P. N. (2024). Tantangan dan Peluang ESG (Environmental, Social, and Governance) Reporting: Analisis Literatur tentang Peran Akuntansi dalam Pengukuran Kinerja Berkelanjutan Perusahaan. Jurnal Relevansi : Ekonomi, Manajemen Dan Bisnis, 8(1), 30–36. https://doi.org/10.61401/relevansi.v8i1.115
Ningwati, G., Septiyanti, R., & Desriani, N. (2022). Pengaruh Environment, Social and Governance Disclosure terhadap Kinerja Perusahaan. Goodwood Akuntansi Dan Auditing Reviu, 1(1), 67–78. https://doi.org/10.35912/gaar.v1i1.1500
Nurbaiti, N., Armayani Hasibuan, R. R., & Siregar, S. N. (2024). Konsep Sustainable Development (Pembangunan Berkelanjutan) Berbasis Sosial Dan Ekonomi Terhadap Perlindungan Sumber Daya Alam Perspektif Maqashid Syariah. Jurnal Manajemen Akuntansi (JUMSI), 4(3), 741–750. https://doi.org/10.36987/jumsi.v4i3.4146
Oware, K. M., & Awunyo-Vitor, D. (2021). CEO characteristics and Environmental Disclosure of listed firms in an emerging economy: Does sustainability reporting format matter? Business Strategy and Development, 4(4), 399–410. https://doi.org/10.1002/bsd2.166
Prafiani, H., & Utama, C. A. (2024). The Effect Of Concurrent Position And Tenure Of President Director And Ownership Structure On Environmental, Social, And Governance (ESG) Value. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi Dan Bisnis, 12(3), 2463–2474. https://doi.org/10.37676/ekombis.v12i3.5932
Pucheta-Martínez, M. C., & Gallego-álvarez, I. (2021). The role of ceo Power on csr reporting: The moderating effect of linking ceo compensation to shareholder return. Sustainability (Switzerland), 13(6), 1–19. https://doi.org/10.3390/su13063197
Qiu, Y., Shaukat, A., & Tharyan, R. (2016). Environmental and Social Disclosures: Link with corporate financial performance. British Accounting Review, 48(1), 102–116. https://doi.org/10.1016/j.bar.2014.10.007
Rousseau, D., Kim, B. J., Splenda, R., Young, S., Lee, J., & Beck, D. (2023). Does chief executive compensation predict financial performance or inaccurate financial reporting in listed companies: A systematic review. Campbell Systematic Reviews, 19(4). https://doi.org/10.1002/cl2.1370
Shleifer, A., & Vishny, R. W. (1989). Management entrenchment. The case of manager-specific investments. Journal of Financial Economics, 25(1), 123–139. https://doi.org/10.1016/0304-405X(89)90099-8
Sugiyono. (2021). Sugiyono - Metode Penelitian Pendidikan 2021 (1).
Utami, R. P., & Muslih, M. (2023). The Effect of Total Asset Turnover Ratio, Return on Asset, and Dividend Policy on The Investment Opportunity Set (IOS). Proceedings of the 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, Johor, 4002–4010. https://doi.org/10.46254/ap03.20220644
Utomo, L. P. (2024). Pengungkapan Environmental, Social, Governance Terhadap Kinerja Keuangan Perusahaan Sektor Energi Di Indonesia. Jurnal Trial Balance (JUTRIANCE), 2(1), 52–61. https://journal.icma-nasional.or.id/index.php/JUTRIANCE
Velte, P. (2019). Does CEO Power moderate the link between ESG performance and financial performance?: A focus on the German two-tier system. Management Research Review, 43(5), 497–520. https://doi.org/10.1108/MRR-04-2019-0182
Wahdan Arum Inawati, & Rahmawati, R. (2023). Dampak Environmental, Social, Dan Governance (ESG) Terhadap Kinerja Keuangan. Jurnal Akademi Akuntansi, 6(2), 225–241. https://doi.org/10.22219/jaa.v6i2.26674
Wang, H., & Qian, C. (2011). Corporate Philanthropy And Corporate Financial Performance : The Roles Of Stakeholder Response And Political Access Hong Kong University of Science and Technology. 54(6), 1159–1181.
Wardani, W., Ummi Arfah, S., & Lubis, S. (2022). All Fields of Science J-LAS Dampak kenaikan Bahan Bakar Minyak (BBM) Terhadap Inflasi dan Implikasinya Terhadap Makroekonomi di Indonesia Impact of the increase in fuel oil (BBM) on inflation and its implications for macroeconomics in Indonesia. 2(3), 63–70. https://j-las.lemkomindo.org/index.php/AFoSJ-LAS/index
Wooldridge, J. M. (2002). Econometric Analysis of Cross Section and Panel Data. Booksgooglecom, 58(2), 752. https://doi.org/10.1515/humr.2003.021
Zahroh, B. M. H. (2021a). Pengaruh Kinerja Environmental, Social, Dan Governance Terhadap Kinerja Keuangan Dengan Kekuatan Ceo Sebagai Variabel Moderasi (Studi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2015-2019). Diponegoro Journal Of Management, 10(1), 1–15. Https://Doi.Or/10.59246/muqaddimah.v2i4.1073
Zhang, Y., & Zhang, X. (2022). The Threshold Effect of Executive Compensation on Corporate Environmental Responsibility: Based on the Moderating Effect of Industry Competition. Sustainability (Switzerland), 14(14), 11–35. https://doi.org/10.3390/su14148711
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Abstract views: 0
,
PDF Downloads: 0
