Exploring ESG, DER, and Firm Size Roles in Driving Financial Performance
Keywords:
DER, ESG, Financial Performance, Firm Size, ROA
Abstract
Improving the achievement of financial result is one of the corporate’s focuses every year. With a company having good financial performance, it could pull investors to invest some funds in the corporate. This basis attracts researchers to see what factors can influence the corporate’s achievement in finance. For the current study, researchers observed factors of ESG, DER, and Firm Size which were used as independent research variables with the dependent variable being financial performance as proxy by ROA, so that the research objective was to conduct an analysis of the impact of independent variables on dependent variable. Purposive sampling, which is a type of non-probability sampling technique, was used in sampling this study, so that there were 14 companies listed on the IDX 80 used as samples in this study. The data analysis used is panel regression and uses a fixed effects model with a significance level of 5%. The test results show a negative influence of ESG, DER on ROA and positive influence on ROA is obtained by the Firm Size. This research imply that companies need to strategically integrate ESG to support long-term profitability and balance debt management.
References
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Ruan, L., & Liu, H. (2021). Environmental, social, governance activities and firm performance: Evidence from China. Sustainability, 13(2), 767. https://doi.org/10.3390/su13020767
Situmorang, I. (2023). Pengaruh current ratio (CR) dan debt to equity rasio (DER) terhadap return on asset (ROA) pada perusahaan sub sektor advertising, printing and media yang terdaftar di BEI. JUBIMA : Jurnal Bintang Manajemen, 1(1), 165–179. https://ejurnal.stie-trianandra.ac.id/index.php/jubima/article/view/1102/901
Susanto, E. (2022). Analisis pengaruh pertumbuhan penjualan, ukuran perusahaan, dan debt to asset ratio terhadap return on asset. Prosiding National Seminar on Accounting UKMC, 1(1), 56–66. https://journal.ukmc.ac.id/index.php/pnsoa/article/view/634/572
Tasmil, L. J., Malau, N., & Nasution, M. (2019). Pengaruh pertumbuhan penjualan, current ratio, debt to equity ratio terhadap kinerja keuangan PT.Sirma Pratama Nusa periode 2014-2017. Jurnal Ekonomi Dan Ekonomi Syariah, 2(2), 131–139. https://doi.org/10.36778/jesya.v2i2.62
Almeyda, R., & Darmansyah, A. (2019). The Influence of Environmental, Social, and Governance (ESG) Disclosure on Firm Financial Performance. The 1st International Conference on Business and Management of Technology (IConBMT), 278–290. https://doi.org/http://dx.doi.org/10.12962/j23546026.y2019i5.6340
Atan, R., Alam, M.M., Said, J., Zamri, M. (2018). The Impacts of Enviromental, Social, and Governance Factors on Firm Performance: Panel Study of Malaysian Companies. Management of Environmental Quality, 29(2), 182–194. https://doi.org/https://doi.org/10.1108/MEQ-03-2017-0033
Brown, D. L., Guidry, R. P., & Patten, D. M. (2010). Sustainability reporting and perceptions of corporate reputation: an analysis using fortune. Sustainability, Environmental Performance and Disclosures, 4, 83–104. https://doi.org/10.1108/S1479-3598(2010)0000004007
Buallay, A. (2019). Sustainability reporting and firm’s performance. International Journal of Productivity and Performance Management, 69(3), 431–445. https://doi.org/10.1108/IJPPM-10-2018-0371
Cahyana, A. M. K., & Suhendah, R. (2020). Pengaruh leverage, firm size, firm age dan sales growth terhadap kinerja keuangan. Jurnal Multiparadigma Akuntansi Tarumanagara, 2(4), 1791–1798. https://doi.org/10.24912/jpa.v2i4.9375
De Lucia, C., Pazienza, P., & Bartlett, M. (2020). Does good ESG lead to better financial performances by firms? Machine learning and logistic regression models of public enterprises in Europe. Sustainability, 12(13), 5317. https://doi.org/10.3390/su12135317
Duque-Grisales, E., & Aguilera-Caracuel, J. (2021). Environmental, social and governance (ESG) scores and financial performance of multilatinas: moderating effects of geographic international diversification and financial slack. Journal of Business Ethics, 168(2), 315–334. https://doi.org/10.1007/s10551-019-04177-w
Eccles, R. G., & Saltzman, D. (2011). Achieving sustainability through integrated reporting. Stanford Social Innovation Review, 9(3), 56–61. https://studylib.net/doc/10546175/achieving-sustainability-through-integrated-reporting-by-...
Firmansyah, M., & Armaniah, H. (2024). Pengaruh CR dan DER terhadap ROA pada perusahaan subsektor industri tambang emas yang terdaftar di Bursa Efek Indonesia Periode 2018-2022. Manajemen Kreatif Jurnal, 2(3), 308–320. https://doi.org/10.55606/makreju.v2i3.3312
Innaya, A. R., Agustina, R., Yuliastina, M., & Soedjatmiko. (2022). Pengaruh ukuran perusahaan dan umur perusahaan terhadap return on asset pada perusahaan manufaktur sub sektor makanan dan minuman yang terdaftar di BEI periode 2018-2020. Jurnal Akuntansi Keuangan Dan Teknologi Informasi Akuntansi, 3(1), 542–553. https://doi.org/10.36085/jakta.v3i1.3617
Kurniawati, F. A., & Waluyo, D. E. (2024). The effect of current ratio, debt to equity ratio, and inventory turnover on return on asset (Study on food and beverage subsector manufacturing companies listed on the Indonesia Stock Exchange for the period 2020 – 2022). Management Studies and Entrepreneurship Journal, 5(2), 4582–4596. https://doi.org/10.37385/msej.v5i2.4666
Naeem, M., Ullah, H., & Jan, S. (2021). The impact of ESG practices on firm performance: Evidence from emerging countries. Indian Journal of Economics and Business, 20(1), 731–750. http://www.ashwinanokha.com/IJEB.php
Nugroho, N. A., & Hersugondo, H. (2022). Analisis pengaruh environmental, social, governance (ESG) disclosure terhadap kinerja keuangan perusahaan. Jurnal Ilmiah Ekonomi Dan Bisnis, 15(2), 233–243. https://doi.org/10.51903/e-bisnis.v15i2.810
Oktavia, M., & Titiek, S. (2022). Pengaruh likuiditas, aktivitas, leverage dan ukuran perusahaan terhadap return on assets pada perusahaan manufaktur yang terdaftar di BEI Tahun 2019-2021. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 5(1), 541–550. https://doi.org/10.32670/fairvalue.v5i1.1944
Putri, H. W. A., & Kusumawati, Y. T. (2020). Pengaruh leverage terhadap profitabilitas perusahaan food and beverages yang terdaftar di Bursa Efek Indonesia Periode 2013-2017. Borneo Student Research, 1(2), 860–864. https://journals.umkt.ac.id/index.php/bsr/article/view/1148/400
Ruan, L., & Liu, H. (2021). Environmental, social, governance activities and firm performance: Evidence from China. Sustainability, 13(2), 767. https://doi.org/10.3390/su13020767
Situmorang, I. (2023). Pengaruh current ratio (CR) dan debt to equity rasio (DER) terhadap return on asset (ROA) pada perusahaan sub sektor advertising, printing and media yang terdaftar di BEI. JUBIMA : Jurnal Bintang Manajemen, 1(1), 165–179. https://ejurnal.stie-trianandra.ac.id/index.php/jubima/article/view/1102/901
Susanto, E. (2022). Analisis pengaruh pertumbuhan penjualan, ukuran perusahaan, dan debt to asset ratio terhadap return on asset. Prosiding National Seminar on Accounting UKMC, 1(1), 56–66. https://journal.ukmc.ac.id/index.php/pnsoa/article/view/634/572
Tasmil, L. J., Malau, N., & Nasution, M. (2019). Pengaruh pertumbuhan penjualan, current ratio, debt to equity ratio terhadap kinerja keuangan PT.Sirma Pratama Nusa periode 2014-2017. Jurnal Ekonomi Dan Ekonomi Syariah, 2(2), 131–139. https://doi.org/10.36778/jesya.v2i2.62
Published
2025-07-24
How to Cite
Ida, I., & Veronica, S. (2025). Exploring ESG, DER, and Firm Size Roles in Driving Financial Performance. International Journal of Economics, Business and Innovation Research, 4(04), 1665-1675. https://doi.org/10.63922/ijebir.v4i04.2126
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