Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024)

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Uncovering the Nexus Between Corporate Governance and Environmental, Social, and Governance (ESG) Score of Indonesia-Listed Companies Assessed by Sustainalytics

Authors
Rr. Sri Saraswati1, Dwi Urip Wardoyo1, Givanny Yusti Wulandari1, *
1School of Economics and Business, Telkom University, Bandung, Indonesia
*Corresponding author. Email: givannyyw@gmail.com
Corresponding Author
Givanny Yusti Wulandari
Available Online 19 November 2024.
DOI
10.2991/978-94-6463-558-4_22How to use a DOI?
Keywords
Board diligence; Board gender diversity; Board size; ESG
Abstract

ESG Score measurement by the Sustainalytics institute, in collaboration with the Indonesia Stock Exchange (IDX), started in 2023. This study analyzes how corporate governance affects the ESG scores of companies assessed by Sustainalytics, addressing inconsistencies in previous research, and contributing to studies in Indonesia. The research object is unique due to its assessed ESG score, necessitating further investigation into the influencing factors. This study examines the factors influencing the ESG score of companies assessed by Sustainalytics, focusing on corporate governance aspects: board diligence, board gender diversity, and board size, with company age and size as control variables. The sample consists of 78 observations. The multiple regression analysis was conducted. The findings of this study show that board gender diversity has a negative effect on ESG scores, while board diligence and board size show no effect. Future research can explore other variables that affect ESG scores, such as financial ratios and green investments. Companies should consider these governance factors in their evaluations, and investors can use ESG scores from independent institute as criteria for investment decisions.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
19 November 2024
ISBN
978-94-6463-558-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-558-4_22How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Rr. Sri Saraswati
AU  - Dwi Urip Wardoyo
AU  - Givanny Yusti Wulandari
PY  - 2024
DA  - 2024/11/19
TI  - Uncovering the Nexus Between Corporate Governance and Environmental, Social, and Governance (ESG) Score of Indonesia-Listed Companies Assessed by Sustainalytics
BT  - Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024)
PB  - Atlantis Press
SP  - 370
EP  - 386
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-558-4_22
DO  - 10.2991/978-94-6463-558-4_22
ID  - Saraswati2024
ER  -