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ESG, Ownership Structure, and Firm Performance: Evidence from Indonesia

Economics Development Analysis Journal · Vol. 15 No. 1 (2026) · hlm. 1–16

DOI
10.15294/edaj.v15i1.42051
ISSN
2502-2725, 2252-6560
Terbit
2026-06-02
Penerbit
Universitas Negeri Semarang
Bahasa
eng

Abstrak

Understanding how firms sustain performance under heightened uncertainty remains a prior issue in corporate finance, particularly in emerging markets characterized by institutional constraints. This study examines the effects of Environmental, Social, and Governance performance, ownership structure, and the COVID-19 crisis on firm performance in Indonesia. This study uses panel data of 39 ESG-committed listed firms over the period 2015–2024, the analysis applies static panel regression and dynamic Difference Generalized Method of Moments to address endogeneity and unobserved heterogeneity. This study shows that Environmental, Social, and Governance performance is positively associated with firm performance in Indonesia. The mean difference tests and scatter plot analysis indicate that firms with higher ESG engagement tend to exhibit higher return on assets and greater performance stability, particularly during the COVID-19 period. These patterns are confirmed by the dynamic GMM results, which reveal a positive and statistically significant effect of ESG performance on return on assets after accounting for endogeneity. The GMM estimates further show that liquidity and firm size positively influence asset-based profitability, while the COVID-19 shock exerts a negative effect on firm performance. Overall, the findings suggest that ESG integration enhances operational efficiency and functions as an effective risk-mitigation mechanism, underscoring the importance of embedding sustainability into core business strategies and strengthening ESG-related policy frameworks in emerging markets.

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33 penulis · 64 tautan kepenulisan bersama · 13 lintas organisasi

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  • IPB University
  • Bank Indonesia
  • Sunan Gunung Djati State Islamic University Bandung
  • Mercu Buana University
  • Afiliasi tidak diketahui
  • Organisasi berbeda
  • Organisasi sama
  • Afiliasi tidak diketahui
  • Garis lebih tebal = lebih banyak artikel bersama · lingkaran lebih besar = lebih banyak artikel
Tampilkan sebagai tabel
Rekan penulisOrganisasiArtikel bersama
Zenal AsikinIPB University2
Dedi Budiman HakimIPB University2
Bagus SartonoIPB University2
Achmad Iskandar ZulkarnainIPB University1
Mulya E. SiregarBank Indonesia1
Irfan Syauqi BeikIPB University1
Hesti WerdaningtyasIPB University1
Anny RatnawatiIPB University1
Tony IrawanIPB University1
Dikky IndrawanIPB University1
Priscilla Maulina Juliani SiregarAfiliasi tidak diketahui1
Ossi FerliAfiliasi tidak diketahui1
Trias AndatiIPB University1
Toni BakhtiarIPB University1
Ferry SyarifuddinBank Indonesia1
Ascarya AscaryaBank Indonesia1
Heni HasanahIPB University1
Solihin SolihinSunan Gunung Djati State Islamic University Bandung1
Imam Teguh SaptonoAfiliasi tidak diketahui1
Bambang JuandaIPB University1
Danti AstriniIPB University1
Sri MurtiyantiIPB University1
Mohammad Iqbal IrfanyIPB University1
Sofina MujadiddahIPB University1
Lala Mulyowibowo KolopakingIPB University1
Eka Intan Kumala PutriIPB University1
Michael Albert BaransanoAfiliasi tidak diketahui1
Machfud MachfudIPB University1
Ani SuryaniIPB University1
Alfa FirdausMercu Buana University1

Afiliasi berasal dari OpenAlex; metadata OAI-PMH jurnal tidak memuatnya. Penulis tanpa ID OpenAlex dicocokkan berdasarkan nama, sehingga dua orang bisa tergabung atau satu orang bisa terpisah.

Sumber metadata: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/edaj/oai, pertama di-harvest 5 Nov 2026, terakhir terlihat 8 Nov 2026.
Metadata asli (oai_dc) 
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	<dc:title xml:lang="en">ESG, Ownership Structure, and Firm Performance: Evidence from Indonesia</dc:title>
	<dc:creator xml:lang="en">Syahputra, Febriann Dedy</dc:creator>
	<dc:creator xml:lang="en">Achsani, Noer Azam</dc:creator>
	<dc:creator xml:lang="en">Sari, Linda Karlina</dc:creator>
	<dc:subject xml:lang="en">Dynamic Panel Model</dc:subject>
	<dc:subject xml:lang="en">ESG</dc:subject>
	<dc:subject xml:lang="en">Ownership Structure</dc:subject>
	<dc:subject xml:lang="en">Firm Performance</dc:subject>
	<dc:subject xml:lang="en">Indonesia</dc:subject>
	<dc:description xml:lang="en">Understanding how firms sustain performance under heightened uncertainty remains a prior issue in corporate finance, particularly in emerging markets characterized by institutional constraints. This study examines the effects of Environmental, Social, and Governance performance, ownership structure, and the COVID-19 crisis on firm performance in Indonesia. This study uses panel data of 39 ESG-committed listed firms over the period 2015–2024, the analysis applies static panel regression and dynamic Difference Generalized Method of Moments to address endogeneity and unobserved heterogeneity. This study shows that Environmental, Social, and Governance performance is positively associated with firm performance in Indonesia. The mean difference tests and scatter plot analysis indicate that firms with higher ESG engagement tend to exhibit higher return on assets and greater performance stability, particularly during the COVID-19 period. These patterns are confirmed by the dynamic GMM results, which reveal a positive and statistically significant effect of ESG performance on return on assets after accounting for endogeneity. The GMM estimates further show that liquidity and firm size positively influence asset-based profitability, while the COVID-19 shock exerts a negative effect on firm performance. Overall, the findings suggest that ESG integration enhances operational efficiency and functions as an effective risk-mitigation mechanism, underscoring the importance of embedding sustainability into core business strategies and strengthening ESG-related policy frameworks in emerging markets.</dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2026-06-02</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/edaj/article/view/42051</dc:identifier>
	<dc:identifier>10.15294/edaj.v15i1.42051</dc:identifier>
	<dc:source xml:lang="en">Economics Development Analysis Journal; Vol. 15 No. 1 (2026): Economics Development Analysis Journal; 1 - 16</dc:source>
	<dc:source>2502-2725</dc:source>
	<dc:source>2252-6560</dc:source>
	<dc:source>10.15294/edaj.v15i1</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/edaj/article/view/42051/10390</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2026 Economics Development Analysis Journal</dc:rights>
</oai_dc:dc>