Anis Anggreqani

Universitas Indo Global Mandiri

Lili Syafitri 

Universitas Indo Global Mandiri

Reny Aziatul Febriani

Universitas Indo Global Mandiri

DOI: https://doi.org/10.19184/jeam.v25i1.60008

Keywords: Environmental, Social, and Governance (ESG), Firm Size, Financial Performance, Banking, Return on Assets

ABTRACT

This study aims to analyze the impact of Environmental, Social, and Governance (ESG) factors and firm size on the financial performance of banking companies listed on the Indonesia Stock Exchange (IDX) for the period 2021–2024. Financial performance is measured using Return on Assets (ROA). This study employs a quantitative approach using secondary data obtained from annual reports and sustainability reports. The research sample consists of 10 banking companies selected using purposive sampling. The results of the classical assumption tests indicate that the regression model does not exhibit multicollinearity, heteroscedasticity, or autocorrelation, making it suitable for analysis. The results of the multiple linear regression analysis indicate that ESG has a positive and significant effect on financial performance, with a coefficient of 0.027 and a significance level of 0.003. Firm size also has a positive and significant effect on financial performance, with a coefficient of 0.435 and a significance level of <0.001. Simultaneously, ESG and firm size have a significant effect on financial performance, with an F-value of 40.797 and a significance level of <0.001. The coefficient of determination (R²) of 0.688 indicates that 68.8% of the variation in financial performance can be explained by ESG and firm size, while the remainder is influenced by other factors outside the research model.

Keywords:  Environmental, Social, and Governance (ESG), Firm Size, Financial Performance, Banking, Return on Assets

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