Menuju Sustainability: Apakah Lingkungan, Sosial dan Tata Kelola berdampak pada Kinerja Keuangan?
DOI:
https://doi.org/10.22219/jaa.v5i4.23017Keywords:
Environmental, Financial Performance, Governance, Social, SustainabilityAbstract
This study aims to assess the impact of Sustainability (sustainability) consisting of environmental, social and governance on the company's financial performance as measured by ROA and ROCE. This research uses a quantitative approach to manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017-2021. A total of 13 companies were selected using the purposive sampling method, so that 65 sample data were obtained. The analysis method used in this study is a regression analysis of panel data. The results showed that environmental disclosure did not have an effect on ROA but environmental disclosure had a positive but not significant effect on ROCE. Social disclosure has a positive and significant effect on ROA. Social disclosure has no effect on ROCE. Governance disclosure has a positive and significant effect on ROA but governance disclosure has no effect on ROCE. High environmental disclosures will degrade the company's financial performance. Creating good environmental sustainability requires high costs and modern technology that will reduce the company's profits. Increasing corporate social disclosure, the company's financial performance will also increase. Disclosure of good corporate governance will lead to the achievement of good CSR outcomes so that it will contribute to good financial performance.
Downloads
References
Abdi, Y., Li, X., & Càmara-Turull, X. (2020). Impact of sustainability on firm value and financial performance in the air transport industry. Sustainability (Switzerland), 12(23), 1–22. https://doi.org/10.3390/su12239957
Abdi, Y., Li, X., & Càmara-Turull, X. (2021). Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-021-01649-w
Agnolucci, P., & Arvanitopoulos, T. (2019). Industrial characteristics and air emissions: Long-term determinants in the UK manufacturing sector. Energy Economics, 78, 546–566. https://doi.org/10.1016/j.eneco.2018.12.005
Alam, M. S., Atif, M., Chien-Chi, C., & Soytaş, U. (2019). Does corporate R&D investment affect firm environmental performance? Evidence from G-6 countries. Energy Economics, 78, 401–411. https://doi.org/10.1016/j.eneco.2018.11.031
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
Alinsari, N., & Putri, L. D. (2022). Aspek Finansial Dan Aspek Kepemilikan Dalam Kinerja Keuangan Pada Perusahaan Manufaktur Sektor Industri Dasar Dan Kimia. Jurnal Akademi Akuntansi, 5(2), 256–270. https://doi.org/10.22219/jaa.v5i2.20593
As’ari, T. M. H., & Yaya, R. (2020). CEO Tenure, ESG Disclosure; Financial Performance; Sustainability Performance; Sustainability Reporting. Jurnal Reviu Akuntansi Dan Keuangan, 10(2), 192. https://doi.org/10.22219/jrak.v10i2.11793
Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research. Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173
de Castro Sobrosa Neto, R., de Lima, C. R. M., Bazil, D. G., de Oliveira Veras, M., & de Andrade Guerra, J. B. S. O. (2020). Sustainable development and corporate financial performance: A study based on the Brazilian Corporate Sustainability Index (ISE). Sustainable Development, 28(4), 960–977. https://doi.org/10.1002/sd.2049
Dixon-Fowler, H. R., Slater, D. J., Johnson, J. L., Ellstrand, A. E., & Romi, A. M. (2013). Beyond “Does it Pay to be Green?” A Meta-Analysis of Moderators of the CEP-CFP Relationship. Journal of Business Ethics, 112(2), 353–366. https://doi.org/10.1007/s10551-012-1268-8
Dočekalová, M. P., & Kocmanová, A. (2016). Composite indicator for measuring corporate sustainability. Ecological Indicators, 61, 612–623. https://doi.org/10.1016/j.ecolind.2015.10.012
Dzomonda, O., & Fatoki, O. (2020). Environmental sustainability commitment and financial performance of firms listed on the johannesburg stock exchange (JSE). International Journal of Environmental Research and Public Health, 17(20), 1–21. https://doi.org/10.3390/ijerph17207504
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835–2857. https://doi.org/10.1287/mnsc.2014.1984
Elkington, J. (1997). Cannibals with forks-Triple Bottom line of 21 century business (S. Creek (ed.); 1st ed.). CT:New Society Publishers.
Endrikat, J., Guenther, E., & Hoppe, H. (2014). Making sense of conflicting empirical findings: A meta-analytic review of the relationship between corporate environmental and financial performance. European Management Journal, 32(5), 735–751. https://doi.org/10.1016/j.emj.2013.12.004
Friedman, M. (2007). The social responsibility of business is to increase its profits (2007th ed.). Springer. https://doi.org/10.1007/978-3-540-70818-6_14
Garcia-Castro, R., Ariño, M. A., & Canela, M. A. (2010). Does social performance really lead to financial performance? Accounting for endogeneity. Journal of Business Ethics, 92(1), 107–126. https://doi.org/10.1007/s10551-009-0143-8
Gillan, S. L., Hartzell, J. C., Koch, A., & Starks, L. T. (2010). Firms’ Environmental, Social and Governance (ESG) Choices, Performance and Managerial Motivation. Journal of Business Ethics, 132(4), 641–660.
Gray, R. (2010). Is accounting for sustainability actually accounting for sustainability...and how would we know? An exploration of narratives of organisations and the planet. Accounting, Organizations and Society, 35(1), 47–62. https://doi.org/10.1016/j.aos.2009.04.006
Hardika, A. L. (2018). Corporate governance mechanism, company size financial performance and sustainability reporting. International Journal of Engineering and Technology(UAE), 7(4), 201–203.
Hassel, L., Nilsson, H., & Nyquist, S. (2005). The value relevance of environmental performance. European Accounting Review, 14(1), 41–61. https://doi.org/10.1080/0963818042000279722
Jan, A. A., Lai, F.-W., Draz, M. U., Tahir, M., Ali, S. E. A., Zahid, M., & Shad, M. K. (2021). Integrating sustainability practices into islamic corporate governance for sustainable firm performance: from the lens of agency and stakeholder theories. Quality & Quantity. https://doi.org/10.1007/s11135-021-01261-0
Jung, S., Nam, C., Yang, D. H., & Kim, S. (2018). Does Corporate Sustainability Performance Increase Corporate Financial Performance? Focusing on the Information and Communication Technology Industry in Korea. Sustainable Development, 26(3), 243–254. https://doi.org/10.1002/sd.1698
Jyoti, G., & Khanna, A. (2021). Does sustainability perforcmance impact financial performance? Evidence from Indian service sector firms. Sustainable Development. https://doi.org/10.1002/sd.2204
Lagasio, V., & Cucari, N. (2019). Corporate governance and environmental social governance disclosure: A meta-analytical review. Corporate Social Responsibility and Environmental Management, 26(4), 701–711. https://doi.org/10.1002/csr.1716
Maehara, L. M., & Kassai, J. R. (2013). Análise das empresas excluídas da carteira do ISE no período de 2005 a 2012. In Congresso de Controladoria e Contabilidade Da USP, 13. https://congressousp.fipecafi.org/anais/artigos132013/429.pdf
Manning, B., Braam, G., & Reimsbach, D. (2019). Corporate governance and sustainable business conduct—Effects of board monitoring effectiveness and stakeholder engagement on corporate sustainability performance and disclosure choices. Corporate Social Responsibility and Environmental Management, 26(2), 351–366. https://doi.org/10.1002/csr.1687
Munir, A., Khan, F. U., Usman, M., & Khuram, S. (2019). Relationship between corporate governance, corporate sustainability and financial performance. Pakistan Journal of Commerce and Social Science, 13(4), 915–933.
Nicolăescu, E., Alpopi, C., & Zaharia, C. (2015). Measuring corporate sustainability performance. Sustainability (Switzerland), 7(1), 851–865. https://doi.org/10.3390/su7010851
Norman, W., & MacDonald, C. (2004). Getting to the Bottom of “Triple Bottom Line.” Business Ethics Quarterly, 14(2), 243–262. https://doi.org/10.5840/beq200414211
Oncioiu, I., Petrescu, A. G., Bîlcan, F. R., Petrescu, M., Popescu, D. M., & Anghel, E. (2020). Corporate sustainability reporting and financial performance. Sustainability (Switzerland), 12(10). https://doi.org/10.3390/su12104297
Pham, D. C., Do, T. N. A., Doan, T. N., Nguyen, T. X. H., & Pham, T. K. Y. (2021). The impact of sustainability practices on financial performance: empirical evidence from Sweden. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1912526
Rodriguez-Fernandez, M. (2016). Social responsibility and financial performance: The role of good corporate governance. BRQ Business Research Quarterly, 19(2), 137–151. https://doi.org/10.1016/j.brq.2015.08.001
Saleh, M., Zulkifli, N., & Muhamad, R. (2013). Looking for Evidence of the Relationship between Corporate Social Responsibility. Asia-Pacific Journal of Business Administration, 3(2), 165–190. http://doi.org/10.1108/17574321111169849
Salehi, M., & Arianpoor, A. (2021). The relationship among financial and non-financial aspects of business sustainability performance: evidence from Iranian panel data. TQM Journal. https://doi.org/10.1108/TQM-08-2020-0175
Sauvé, S., Bernard, S., & Sloan, P. (2016). Environmental sciences, sustainable development and circular economy: Alternative concepts for trans-disciplinary research. Environmental Development, 17, 48–56. https://doi.org/10.1016/j.envdev.2015.09.002
Seuring, S., & Gold, S. (2013). Sustainability management beyond corporate boundaries: From stakeholders to performance. Journal of Cleaner Production, 56, 1–6. https://doi.org/10.1016/j.jclepro.2012.11.033
Shrivastava, P., & Addas, A. (2014). The impact of corporate governance on sustainability performance. Journal of Sustainable Finance and Investment, 4(1), 21–37.
Suciu, A. A., Păun, D., & Duma, F. S. (2021). Sustainability of financial performance in relation to gender diverse boards: A comparative analysis of french and romanian listed companies on stock exchanges. Sustainability (Switzerland), 13(18). https://doi.org/10.3390/su131810282
Tang, Z., Hull, C. E., & Rothenberg, S. (2012). How Corporate Social Responsibility Engagement Strategy Moderates the CSR-Financial Performance Relationship. Journal of Management Studies, 49(7), 1274–1303. https://doi.org/10.1111/j.1467-6486.2012.01068.x
Tjahjadi, B., Soewarno, N., & Mustikaningtiyas, F. (2021). Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach. Heliyon, 7(3). https://doi.org/10.1016/j.heliyon.2021.e06453
Wagner, M., & Blom, J. (2011). The reciprocal and non-linear relationship of sustainability and financial performance. Business Ethics, 20(4), 418–432. https://doi.org/10.1111/j.1467-8608.2011.01622.x
Wang, X., Lin, H., & Tian, M. (2020). Corporate Sustainability Performance of Chinese Firms: An Empirical Analysis from a Social Responsibility Perspective. Emerging Markets Finance and Trade, 56(9), 2027–2038. https://doi.org/10.1080/1540496X.2019.1608522
Wang, Z., & Sarkis, J. (2017). Corporate social responsibility governance, outcomes, and financial performance. Journal of Cleaner Production, 162, 1607–1616. https://doi.org/10.1016/j.jclepro.2017.06.142
Yang, Y., Yao, C., & Li, Y. (2020). The impact of the amount of environmental information disclosure on financial performance: The moderating effect of corporate internationalization. Corporate Social Responsibility and Environmental Management, 27(6), 2893–2907. https://doi.org/10.1002/csr.2010
Yang, Z., Sun, J., Zhang, Y., Wang, Y., & Cao, L. (2017). Employees’ collaborative use of green information systems for corporate sustainability: motivation, effort and performance. Information Technology for Development, 23(3), 486–506. https://doi.org/10.1080/02681102.2017.1335281
Zahid, M., Rahman, H. U., Khan, M., Ali, W., & Shad, F. (2020). Addressing endogeneity by proposing novel instrumental variables in the nexus of sustainability reporting and firm financial performance: A step-by-step procedure for non-experts. Business Strategy and the Environment, 29(8), 3086–3103. https://doi.org/10.1002/bse.2559
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Intan Novia Astuti, Sisca Mediyanti, Eliana Eliana, Ainul Ridha
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Jurnal Akademi Akuntansi is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its 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 (See The Effect of Open Access).
Jurnal Akademi Akuntansi dilisensikan di bawah lisensi Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International.
Penulis yang menerbitkan artikel di jurnal ini menyetujui ketentuan berikut:
- Penulis mempertahankan hak cipta dan memberikan hak jurnal atas publikasi pertama dengan karya yang secara serentak dilisensikan di bawah Lisensi Pengaitan Creative Commons yang memungkinkan orang lain untuk berbagi karya dengan pengakuan atas karya penulis dan publikasi awal dalam jurnal ini.
- Penulis dapat masuk ke dalam pengaturan kontrak tambahan yang terpisah untuk distribusi non-eksklusif versi karya jurnal yang diterbitkan (misalnya, mempostingnya ke repositori institusional atau mempublikasikannya dalam sebuah buku), dengan pengakuan publikasi awalnya di jurnal ini.
- Penulis diizinkan dan didorong untuk memposting pekerjaan mereka secara online (misalnya, di repositori institusional atau di situs web mereka) sebelum dan selama proses pengajuan, karena dapat mengarah pada pertukaran produktif, serta kutipan pekerjaan sebelumnya dan yang lebih besar (Lihat Pengaruh Akses Terbuka).
