Stable Financial Performance as the Antecedent of ESG Activity and Firm Value Relationship: An Evidence from Indonesia

Nurim, Yavida; Harjanto, Nung; Prabawati, Paulina I.; Wijaya, Nur R.

doi:10.1108/s1571-038620220000030006

Cited by 1 publication

(3 citation statements)

References 21 publications

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“…In most cases, the results suggest that firms with higher environmental, social, and governance performance have better market value measures. These results are consistent with previous research showing that better total and individual ESG practices can improve FP (Ademi & Klungseth, 2022;Ahmad et al, 2021;Al Amosh et al, 2022;Alareeni & Hamdan, 2020;Carnini Pulino et al, 2022;Habib, 2022;Han et al, 2016;Hu et al, 2018;Kalia & Aggarwal, 2022;Nguyen et al, 2022;Nurim et al, 2022;Qiu et al, 2016). Accordingly, this is an opportunity for firm leaders to concentrate on adopting and enhancing ESG practices to improve FP and achieve continuous improvement.…”

Section: Conclusion and Policy Implicationssupporting

confidence: 91%

“…These results support H1a. These results are consistent with the findings of the following previous studies (Ademi & Klungseth, 2022;Ahmad et al, 2021;Al Amosh et al, 2022;Alareeni & Hamdan, 2020;Carnini Pulino et al, 2022;Habib, 2022;Kalia & Aggarwal, 2022;Nguyen et al, 2022;Nurim et al, 2022). Accordingly, this is considered an opportunity for firm decision-makers to concentrate on adopting and enhancing ESG practices to improve FP.…”

Section: Regression Analysessupporting

confidence: 91%

“…The results reveal a positive influence on FP. Nurim et al ( 2022 ) examine the influence of ESG activities on FP using a sample of 139 Indonesian firms from 2013 to 2019. The results confirm that FP consistently influences ESG performance and that ESG performance mediates the relationship between FP and firm value.…”

Section: Literature Review and Hypothesis Formulationmentioning

confidence: 99%

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The Influence of Environmental, Social, and Governance (ESG) Practices on US Firms’ Performance: Evidence from the Coronavirus Crisis

Habib¹,

Mourad

2023

J Knowl Econ

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This study explores the influence of total and individual ESG practices and the coronavirus crisis on US firm performance (FP). A large and recent sample of 406 US firms that adopted ESG issues during 2016–2020 was used. This study uses the generalized least-squares (GLS) regression estimator, the dynamic analysis technique, and robustness tests. The results indicate that firms with heightened ESG practices have better performance measures. In most cases, the results suggest that firms with heightened environmental, social, and governance performances have better performance measures. The results suggest that the coronavirus crisis negatively affected FP measures. In addition, the analyses of the differences suggest significant distinctions in FP due to the coronavirus crisis. This study’s findings have important implications for stakeholders. Managers could benefit from the results of this examination by recognizing the status of ESG practices and FP before and during the coronavirus crisis and identifying the linkage between the fulfillment of ESG responsibilities and FP. This study provides noteworthy practical implications that could enable managers to develop strategies and policies for adopting and enhancing ESG practices to achieve the best performance. Furthermore, the results could influence trading processes as investors and financiers pursue attractive financial returns from investments in businesses concerned with ESG issues.

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