The impact of ESG disclosure on financial performance with leverage as an intervening variable in mining companies listed on the Indonesia Stock Exchange

Eko Prayitno; Mohamad Adam; Marlina Widiyanti; Lukluk Fuadah

doi:10.21744/ijbem.v7n2.2285

Authors

Eko Prayitno Sriwijaya University, Palembang, Indonesia
Mohamad Adam
mr_adam88@unsri.ac.id
Sriwijaya University, Palembang, Indonesia
Marlina Widiyanti Sriwijaya University, Palembang, Indonesia
Lukluk Fuadah Sriwijaya University, Palembang, Indonesia

Keywords:

environment, governance (ESG), leverage, ROA, social

Abstract

The purpose of this study is to obtain empirical evidence of ESG on the Mining firm's performance listed on the Indonesia Stock Exchange with leverage as a mediating variable. The sampling technique used purposive sampling, the research samples obtained totalled 9 companies with a research period from 2019-2022 so there were 36 units of analysis. The research design was quantitative descriptive. The analysis technique in this research is the path analysis method. The results showed that ESG has a significant positive effect on a firm's performance and no effect on leverage. Leverage has no direct effect or mediating effect on a firm's performance. This research implies that companies must pay attention to ESG and those that can affect profitability so that company performance can increase.

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