ESG Performance, Outside Directors, dan Firm Performance: Sebuah Analisis Empiris
DOI:
https://doi.org/10.32493/JEE.v8i1.52642Keywords:
ESG performance, firm performance, outside directors, return on assets, return on equityAbstract
The concept of Environmental, Social, and Governance (ESG) has gained significant momentum in the global business landscape, including in Indonesia. However, the effectiveness of ESG implementation on firm performance has rarely been examined from the perspective of internal governance mechanisms, particularly the role of outside directors. This study analyzes the effect of ESG performance on firm performance, considering outside directors as a mediating variable. A quantitative approach was applied using purposive sampling on 84 companies that have adopted ESG principles. Secondary data were analyzed using Stata software. The regression results indicate that ESG performance has a positive and significant effect on return on assets (ROA) but no significant effect on return on equity (ROE). Outside directors have a negative effect on ROA and do not significantly mediate the relationship between ESG performance and ROE. The mediation effect is competitive, meaning that outside directors reduce the positive influence of ESG performance on ROA. These findings underscore the need to re-evaluate the structure and capacity of outside directors in supporting corporate sustainability strategies.
References
[1]. Ahmad, S., Mohti, W., Khan, M., Irfan, M., & Bhatti, O. K. (2024). Creating a bridge between ESG and firm’s financial performance in Asian emerging markets: catalytic role of managerial ability and institutional quality. Journal of Economic and Administrative Sciences. https://doi.org/10.1108/JEAS-01-2024-0004
[2]. Al-Faryan, M. A. S. (2024). Agency theory, corporate governance and corruption: an integrative literature review approach. Cogent Social Sciences, 10(1). https://doi.org/10.1080/23311886.2024.2337893
[3]. Al-Sarraf, J., Al-Swidi, A. K., & Al-Hakimi, M. A. (2025). Board diversity matters: assessing ESG performance through the lens of firm size. Corporate Governance (Bingley), March. https://doi.org/10.1108/CG-11-2023-0495
[4]. Alqahtani, J., Duong, L., Taylor, G., & Eulaiwi, B. (2022). Outside directors, firm life cycle, corporate financial decisions and firm performance. Emerging Markets Review, 50(June 2020), 100820. https://doi.org/10.1016/j.ememar.2021.100820
[5]. Andy. (2022). PwC mengumumkan rekor pendapatan global sebesar US$50 miliar. https://www.pwc.com/id/en/media-centre/press-release/2022/indonesian/pwc-mengumumkan-rekor-pendapatan-global-sebesar-usd50-miliar.html
[6]. Calvina, C., & Istimawani, E. T. A. (2021). Pengaruh Tata Kelola Perusahaan terhadap Kinerja Perusahaan. Media Bisnis, 13(2), 175–184. https://doi.org/10.34208/mb.v13i2.1689
[7]. Cambrea, D. R., Quarato, F., D’Allura, G. M., & Paolone, F. (2025). Driving ESG performance: CEO succession impact in European listed firms. Management Decision, 63(2), 512–530. https://doi.org/10.1108/MD-10-2023-2005
[8]. Candy, C., & Delfina, D. (2023). CEO Narcissism and CEO Overconfidence on Firm Performance: The Role of Capital Structure as Mediating Variable. Jurnal Keuangan Dan Perbankan, 27(2), 220–230. https://doi.org/10.26905/jkdp.v27i2.9767
[9]. Chairani, C., & Siregar, S. V. (2021). The effect of enterprise risk management on financial performance and firm value: the role of environmental, social and governance performance. Meditari Accountancy Research, 29(3), 647–670. https://doi.org/10.1108/MEDAR-09-2019-0549
[10]. Colak, G., Hickman, K., Korkeamäki, T., & Meyer, N. O. (2022). ESG Issues and Career Prospects of Directors: Evidence from the International Director Labor Market. Financial Markets, Institutions and Instruments, 31(4), 147–203. https://doi.org/10.1111/fmii.12168
[11]. Fransisca, L., Malini, H., Azazi, A., & Syahputri, A. (2025). Dampak CSR dan ESG Terhadap Kinerja Keuangan dan Keberlanjutan Perusahaan Dimediasi oleh Green Finance. 05(01), 115–124.
[12]. Habib, A. M., & Mourad, N. (2024). The Influence of Environmental, Social, and Governance (ESG) Practices on US Firms’ Performance: Evidence from the Coronavirus Crisis. Journal of the Knowledge Economy, 15(1), 2549–2570. https://doi.org/10.1007/s13132-023-01278-w
[13]. Han, S., & Mun, H. (2023). An investigation into outside directors, managerial compensation, and firm performance in the Korean insurance industry. Managerial Finance, 49(12), 1938–1963. https://doi.org/10.1108/MF-11-2022-0540
[14]. Hendrastuti, R., & Harahap, R. F. (2023). Agency theory: Review of the theory and current research. Jurnal Akuntansi Aktual, 10(1), 85. https://doi.org/10.17977/um004v10i12023p085
[15]. Kalia, D., & Aggarwal, D. (2023). Examining impact of ESG score on financial performance of healthcare companies. Journal of Global Responsibility, 14(1), 155–176. https://doi.org/10.1108/JGR-05-2022-0045
[16]. Kang, M. J., Oh, S. G., & Lee, H. Y. (2022). The Association between Outside Directors’ Compensation and ESG Performance: Evidence from Korean Firms. Sustainability (Switzerland), 14(19), 1–22. https://doi.org/10.3390/su141911886
[17]. Khanchel, I., Lassoued, N., & Baccar, I. (2023). Sustainability and firm performance: the role of environmental, social and governance disclosure and green innovation. Management Decision, 61(9), 2720–2739. https://doi.org/10.1108/MD-09-2021-1252
[18]. Lee, J., Koh, K. (Rachel), & Shim, E. D. (2024). Managerial incentives for ESG in the financial services industry: direct and indirect association between ESG and executive compensation. Managerial Finance, 50(1), 10–27. https://doi.org/10.1108/MF-03-2023-0149
[19]. Lee, S. P., & Isa, M. (2023). Environmental, social and governance (ESG) practices and financial performance of Shariah-compliant companies in Malaysia. Journal of Islamic Accounting and Business Research, 14(2), 295–314. https://doi.org/10.1108/JIABR-06-2020-0183
[20]. Maji, S. G., & Lohia, P. (2024). Unveiling the financial effect of ESG disclosure on financial performance in India: climate-sensitive corporates’ perspective. International Journal of Ethics and Systems. https://doi.org/10.1108/IJOES-02-2024-0039
[21]. Mardianto, Karina, R., & Edi, E. (2024). Differences in the influence of the board of directors and the board of commissioners on real earnings management: empirical evidence from Indonesia. Jurnal Siasat Bisnis, 28(2), 130–148. https://doi.org/10.20885/jsb.vol28.iss2.art1
[22]. Martín-Ugedo, J. F., & Mínguez-Vera, A. (2023). Board of directors and firm debt in Spanish SMEs: A power perspective. European Research on Management and Business Economics, 29(3), 100231. https://doi.org/10.1016/j.iedeen.2023.100231
[23]. Matinheikki, J., Kauppi, K., Brandon–Jones, A., & van Raaij, E. M. (2022). Making agency theory work for supply chain relationships: a systematic review across four disciplines. In International Journal of Operations and Production Management (Vol. 42, Issue 13). https://doi.org/10.1108/IJOPM-12-2021-0757
[24]. Naziyatul Ulfa, S., & Rahman, A. (2024). Environmental, Social, Governance (ESG) pada Kinerja Perusahaan denganBoard Gender Diversity sebagai Pemoderasi. 08(02), 1–10.
[25]. Pertiwi, L. (2023). Pengaruh kinerja Environmental, Social, Governance (ESG) terhadap kinerja perusahaan dengan kendala keuangan sebagai variabel moderasi (Studi pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2016-2020). Diponegoro Journal of Management, 12(1), 1. http://ejournal-s1.undip.ac.id/index.php/dbr
[26]. Prestiani, T. S., Irsyad, M., & Mujtaba, E. (2024). Keberagaman Gender Dewan Direksi Terhadap Kinerja Organisasi. 8(April), 4935–4947.
[27]. Ranjeeni, K., & Naidu, D. (2024). Do Investors Undervalue Female Directors Due to Gender Role Stereotypes? Evidence from the United States. Abacus, 60(3), 492–538. https://doi.org/10.1111/abac.12321
[28]. Roro, Y., Dewi, K., Tubastuvi, N., Purwidianti, W., Widyaningtyas, D., & Purwokerto, U. M. (2025). Exploring the impact of social , corporate governance and environmental on return on. 0832(April), 1–20.
[29]. Sabatini, S. Z., & Utama, C. A. (2023). ESG Performance and Firm Value – Do Busy Directors Help? International Research Journal of Business Studies, 16(2), 151–162. https://doi.org/10.21632/irjbs.16.2.151-162
[30]. Sari, P., Widiatmoko, J., & Kunci, K. (2023). Pengaruh Environmental, Social, and Governance (ESG) Disclosure terhadap Kinerja Keuangan dengan Gender Diversity sebagai Variabel Moderasi. Jurnal Ilmiah Akuntansi Dan Keuangan, 5(9)(9), 3634–3642. https://journal.ikopin.ac.id/index.php/fairvalue
[31]. Sepriani, L., & Candy, C. (2022). The Effect of Corporate Governance on Corporate Value: The Role of Enterprise Risk Management. Matrik : Jurnal Manajemen, Strategi Bisnis Dan Kewirausahaan, November, 224. https://doi.org/10.24843/matrik:jmbk.2022.v16.i02.p04
[32]. Solarino, A. M., & Boyd, B. K. (2023). Board of director effectiveness and informal institutions: A meta-analysis. Global Strategy Journal, 13(1), 58–89. https://doi.org/10.1002/gsj.1468
[33]. Tijani, A., & Ahmadi, A. (2022). An empirical study of the relationship between the busy outside directors and indicators of ESG performance. Decision Science Letters, 11(3), 323–332. https://doi.org/10.5267/j.dsl.2022.2.001
[24]. Zogning, F. (2022). Agency Theory : A Critical Review Agency Theory : A Critical Review. Management Journal, 9(October), 1–8.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Jurnal Ekonomi Efektif
This work is licensed under a Creative Commons Attribution 4.0 International License.
Penulis yang menerbitkan jurnal ini menyetujui persyaratan berikut:
Penulis memiliki hak cipta artikel dan menyerahkan kepada jurnal hak publikasi pertama dengan karya yang secara simultan dilisensikan di bawah di bawah persyaratan Atribusi 4.0 Internasional (CC BY 4.0)
yang memungkinkan orang lain untuk berbagi karya dengan pengakuan kepengarangan karya dan publikasi awal dalam jurnal ini.Penulis dapat masuk ke dalam pengaturan kontrak tambahan yang terpisah untuk distribusi non-eksklusif versi jurnal yang diterbitkan dari karya tersebut (misalnya, mempostingnya ke repositori institusional atau menerbitkannya dalam sebuah buku), dengan pengakuan atas karya awalnya publikasi dalam jurnal ini.
Penulis diizinkan dan didorong untuk memposting pekerjaan mereka secara online (misalnya, dalam repositori institusional atau di situs web mereka) sebelum dan selama proses pengajuan, karena dapat menyebabkan pertukaran yang produktif, serta kutipan yang lebih awal dan lebih besar dari karya yang diterbitkan (Lihat The Effect of Open Access).
