The Impact of ESG on Financial Performance, Moderated by Firm Size, in the SRI-KEHATI Index

Citra Aura Arista; Ayu Puspitasari; Nina Febrianti Dosinta

doi:10.24843/EJA.2026.v36.i07.p09

Authors

Citra Aura Arista Faculty of Economics and Business, Universitas Tanjungpura, Indonesia
Ayu Puspitasari Faculty of Economics and Business, Universitas Tanjungpura, Indonesia
Nina Febrianti Dosinta Faculty of Economics and Business, Universitas Tanjungpura, Indonesia

DOI:

https://doi.org/10.24843/EJA.2026.v36.i07.p09

Keywords:

ESG Score, Profitability, ROA, Financial Performance, Company

Abstract

This study aims to analyze the effect of Environmental, Social, and Governance (ESG) Score on company profitability proxied by Return on Assets (ROA) in companies listed on the Indonesia Stock Exchange during the 2020–2024 period. This study uses a quantitative approach with secondary data obtained from company financial reports and ESG data. The research sample consists of companies that have complete ESG Score data during the observation period. The analysis technique used is panel data regression with company size (Ln Total Asset) as a moderating variable. The results show that ESG Score has a positive effect on company profitability. Companies with better ESG implementation tend to have more stable financial performance and higher profitability levels. In addition, company size also has a positive effect on profitability. This study indicates that ESG can become a business strategy that supports sustainability and improves company performance in the long term.

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