| dc.description.abstract | This research examined the effect of sustainability reporting, measured
through Environmental, Social, and Governance (ESG) Score, on the financial
performance of Basic Materials and Energy sector companies listed on the
Indonesia Stock Exchange (IDX) during 2021 to 2025. Financial performance was
proxied by Return on Assets (ROA) and Market value (LnMarCap), with firm size,
leverage, and board size as control variables. Using quantitative approach with
secondary data from Refinitiv LSEG, this research employed panel data regression
with the Random Effect method on the sample of 25 companies generating 105
firm-year observations. The results showed that ESG Score had no significant effect
on ROA (p = 0.115), while ESG Score had a significant negative effect on Market
value (p = 0.019). These findings suggested that, in the Indonesian context,
sustainability reporting had not yet generated positive short-term financial value.
The challenges carbon-intensive sectors confront in the global energy transition
exacerbated investors' perception of ESG expenditures as cost burdens rather than
long-term value drivers. | en_US |
