Thesis
Published
THE MODERATING ROLE OF FINANCIAL PERFORMANCE IN THE RELATIONSHIP BETWEEN ENVIRONMENTAL, SOCIAL AND GOVERNMENT (ESG), CORPORATE SOCIA RESPONSIBILITY (CSR) AND STOCK PRICE REACTION: A CASE OF MINING COMPANIES LISTED IN JAKARTA ISLAMIC INDEX (JII).
Abstract
This study aims to analyze the moderating role of financial performance in the
relationship between Environmental, Social, and Governance (ESG), Corporate
Social Responsibility (CSR), and stock price reactions in mining companies listed
on Jakarta Islamic Index (JII). This study uses a quantitative approach with panel
data regression method on 20 companies during the period 2020-2022. ESG and
CSR are identified as independent variables, stock price reaction as the dependent
variable, and financial performance as the moderating variable. The results show
that ESG has a positive and significant influence on stock price reaction, reflecting
that effective ESG practices can increase investor confidence, stock stability, as
well as corporate reputation. In contrast, CSR does not have a significant influence
on stock price reaction, indicating that CSR implementation in Indonesia tends to
be compulsory having a relevant impact on market perception. In addition, financial
performance as a moderating variable does not significantly affect the relationship
between ESG and CSR and stock price reaction, either under specific market
conditions or in general. This study provides theoretical and practical implications,
namely the importance of ESG to create long-term corporate value and the need to
re-evaluate CSR strategies to be more relevant to the needs of society. This study
also recommends companies to increase transparency and implementation of ESG
and to the government to tighten policies related to ESG and CSR. Future
researchers are advised to expand the scope of research by considering other mining
sectors, conducting research over a longer period of time, and analyzing investor
sentiment and macroeconomic factors. In addition, research on mining companies
for the latest year can also be carried out to obtain more relevant and up to date
findings.
Publication Details
InstitutionUniversitas Darussalam Gontor
DepartmentManajemen
Subjects23rd Dewey Decimal Classification > 300 – Ilmu Sosial > 330 - Ekonomi > 332 Ekonomi keuangan
KeywordsESG, CSR, financial performance, stock price reaction, JII
Item ID5500
Deposited19 Feb 2025 14:12