The Effect Of Institutional Ownership On ESG Disclosure With Financial Performance As A Moderating Variable
DOI:
https://doi.org/10.22437/jaku.v11i01.48168Keywords:
Institusional Ownership , ESG Disclosure, Financial Performance, Sustainable Investment, Sustainable ReportAbstract
This study aims to examine the effect of institutional ownership on Environmental, Social, and Governance (ESG) disclosure, with financial performance as a moderating variable. The research was conducted on companies listed in the ESG Quality 45 IDX KEHATI index for the 2021–2023 period using secondary data. A quantitative method with Structural Equation Modelling-Partial Least Square (SEM-PLS) was employed for analysis. The findings reveal that institutional ownership has a positive and significant effect on ESG disclosure as well as on financial performance. However, financial performance is not proven to moderate the relationship between institutional ownership and ESG disclosure. These results emphasize that institutional ownership plays a crucial role in enhancing ESG reporting transparency, while financial performance does not necessarily strengthen the relationship between institutional ownership and ESG disclosure.
Downloads
References
Ardiansyah, T., & Parasetya, M. T. (2024). Pengaruh Kepemilikan Manajerial dan Kepemilikan Institusional terhadap Corporate Social Responsibility dengan Kinerja Keuangan sebagai variabel moderasi. Diponegoro Journal of Accounting, 13(47), 1–13.
Bai, H., & Kim, J. (2024). Do ESG Practices Promote Financial Performance? Comparison of English, Chinese, and Korean Papers Through Bibliometric and Meta Analysis. Sustainability, 16(22), 9810. https://doi.org/10.3390 /su16229810
Boudermine, S., & Keddam, D. (2024). Institutional Investors Ownership and Financial Performance: An Empirical Study of CAC40 Companies. 269–281. https://doi.org/10.24818/mer/2024.02-05
Chen, Z., & Xie, G. (2022). International Review of Financial Analysis ESG disclosure and financial performance : Moderating role of ESG investors. International Review of Financial Analysis, 102291. https://doi.org/10.1016/j.Irfa.2022.102291
Dakhli, A. (2021). The impact of ownership structure on corporate social responsibility : the moderating role of financial performance. Society and Business Review, 16(4), 562-591. https://doi.org/10.1108/S BR-01-2021-0013
Din, S.U., Khan, M.A., Khan, M.J. & Khan, M.Y. (2021), Ownership structure and corporate financial performance in an emerging market: a dynamic panel data analysis. International Journal of Emerging Markets, 17(8), 1973-1997. https://doi.org/10.1108/IJOEM-03-2019-0220
Eluyela, D. F., Okere, W., Otekunrin, A. O., Okoye, J. N., & Festus, A. (2020). Institutional Investors Ownership and Financial Performance : Examining the Nexus in Nigerian Deposit Money Banks. Research in World Economy, 11(6), 177–184. https://doi.org/10.5430/rwe.v11n6p177
Franks, J. (2020). Institutional ownership and governance. Oxford Review of Economic Policy, 36(2), 258–274. https://doi.org/10.1093/oxrep/gra a009
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman Publishing Inc.
GRI. (2021). Standar GRI Terkonsolidasi. Diakses dari https://www.Globalreporting.org/how-to-use-theg ri-standards/gri-standards-bahasaindonesiatranslat ions/
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). California: SAGE Publications, Inc.
International Association for Public Participation (IAP2). (2022). Situasi dan Tantangan Perjalanan ESG di Indonesia. Diakses dari https://iap2.or.id/ situasi-dan-tantangan-perjalanan-esg-di-indonesia/
Jeanice, J., & Kim, S. S. (2023). Pengaruh Penerapan ESG Terhadap Nilai Perusahaan di Indonesia. Owner : Riset Dan Jurnal Akuntansi, 7(2), 1646- 1653. https://doi.org/10.33395/owner.v7i2.1338
Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm : Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016 /0304-405X(76)90026-X
Kartika, F., Dermawan, A., & Hudaya, F. (2023). Pengungkapan environmental, social, governance (ESG) dalam meningkatkan nilai perusahaan publik di Bursa Efek Indonesia. Jurnal Ilmiah Ilmu Sosial dan Humaniora, (9), 29–39. https://doi.Org /10.30738/sosio.v9i1.14014
Khadka, Y. B., & Thapa, B. S. (2024). Impact of Financial Literacy on Financial Behavior among Sugarcane Farmers. Nepalese Journal of Management and Technology, 2(2), 5–21. https://doi.org/10.3126/njmt.v2i2.68711
Kim, S., & Li, Z. F. (2021). Understanding the Impact of ESG Practices in Corporate Finance. Sustainability, 13. https://doi.org/10.3390/su1307 3746
Li, Z., Liu, Z., & Wang, Y. (2024). The Role of Institutional Ownership in Corporate ESG Performance. https://dx.doi.org/10.2139/ssrn.4 935 696
Liang, M., Wu, X., Wang, X., Zhang, H., & Li, D. (2023). The Mechanism of the Impact of ESG Performance on the Financial Performance of Environmentally Sensitive Enterprises Based on the Mesomeric Effect of Green Technology Innovation. Boya Century Publishing. 3(5), 47–57. https://doi.Org/10.54691/fse.v3i5.5020
Mo, F., & Wang, D. D. (2023). Emerging ESG Reporting of Higher Education Institutions in China. Heliyon, 9. https://doi.org/10.1016/j.heliyo n.2023.e22527
Peraturan Otoritas Jasa Keuangan (OJK) No.51/ POJK.03/ 2017 tentang Penerapan Keuangan Keberlanjutan Bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik. Diakses dari https://www.ojk.go.id/sustainablefinance/id/peraturan/peraturan-ojk/Documents/SAL%20POJK%20 51%20-%20keuangan%20keberlanjutan.pdf
Qasem, A., Al-duais, S. D., & Wan-hussin, W. N. (2022). Institutional Ownership Types and ESG Reporting : The Case of Saudi Listed Firms. Sustainability, 1–23. https://doi.org/10.3390/su14 1811316
Sakawa, H. & Watanabel, N. (2020). Institutional Ownership and Firm Performance under Stakeholder-Oriented Corporate Governance. Sustainability, 12(3), 1021. https://doi.org/10.33 90/su12031021
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (7th Ed). United Kingdom: Wiley
Shittu, A., & Yahaya, O. A. (2024). The Effect of Institutional Ownership on Sustainability Disclosure in Emerging Markets, Nigeria in Perspective. The Financial Economist: Accounting, Auditing, and Finance. 9(19), 74–109. https://dx.doi.org/10. 2139/ssrn.5020702
Sugiyono. (2023). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta
Yin, Y., Qian, Y., Wang, L., & Lu, Y. (2024). Common institutional ownership and corporate ESG performance in China. Finance Research Letters, 105517. https://doi.org/10.1016/j.frl.2024.105517
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Yulia Ananda Putri, Adri Putra Nugraha
This work is licensed under a Creative Commons Attribution 4.0 International License.
