HERSUGONDO, Hersugondo (2016) ARTIKEL Dr. HERSUGONDO, SE, MM: ESG Disclosures and ROI Dynamics in Indonesian Technopreneurship for Sustainable Development. APTISI Transactions on Technopreneurship (ATT), 8 (3). pp. 1029-1042.

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Abstract

This study investigates the simultaneous effects of Environmental, Social, and
Governance (ESG) disclosure, along with each of its pillars, on the Return on In
vestment (ROI) of Indonesian public companies from 2019 to 2024. This study
aims to analyze how ESG disclosure and its individual components influence
ROI, as well as to examine the moderating roles of market capitalization and
leverage. Utilizing a quantitative, explanatory research design with panel data,
the research analyzes 30 non-financial firms listed on the Indonesia Stock Ex
change (IDX), employing Moderated Regression Analysis (MRA) to examine
the moderating roles of market capitalization and leverage. The findings reveal
a consistent increase in ESG Disclosure scores, from 40.12 in 2019 to 55.32 in
2024, accompanied by a positive trend in ROI, peaking in 2022. The results
demonstrate that ESG, Environmental, Governance, and Social Disclosure each
have significant positive impacts on ROI. Market capitalization strengthens the
ESG-ROI relationship, while leverage weakens it, highlighting the importance
of financial structure and firm scale in optimizing ESG benefits. The study con
tributes theoretically by integrating all three ESG pillars and two moderators in
a comprehensive model, filling a research gap in emerging markets. Practically,
it offers insights for management to enhance ESG strategy, for regulators to im
prove policy, and for investors to make informed decisions. Limitations include
sample size, sector focus, and reliance on secondary ESG ratings, suggesting
future research across sectors, countries, and with broader variables. Overall,
ESGdisclosure, supported by robust market capitalization and prudent leverage,
is key to sustainable financial performance in emerging markets.

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