Empirical Evidence of ESG Disclosure's Impact on Corporate Investment Decision in Indonesia
The purpose of this study is to investigate the impact of environmental, social, and governance (ESG) disclosure on corporate investment decisions. Data were collected from annual reports of firms listed in Indonesia Stock Exchange between 2015 and 2020 (378 firm-year observations). Using Ordinary L...
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| Format: | Article |
| Language: | English |
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Universitas Syiah Kuala
2024-03-01
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| Series: | Jurnal Dinamika Akuntansi dan Bisnis |
| Online Access: | https://jurnal.usk.ac.id/JDAB/article/view/31466 |
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| _version_ | 1841560622782742528 |
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| author | Suham Cahyono Vira Ayu Damayanti Ardianto Ardianto Ardianto Ardianto |
| author_facet | Suham Cahyono Vira Ayu Damayanti Ardianto Ardianto Ardianto Ardianto |
| author_sort | Suham Cahyono |
| collection | DOAJ |
| description | The purpose of this study is to investigate the impact of environmental, social, and governance (ESG) disclosure on corporate investment decisions. Data were collected from annual reports of firms listed in Indonesia Stock Exchange between 2015 and 2020 (378 firm-year observations). Using Ordinary Least Square (OLS) and fixed effect estimation, this study found that the dimension of ESG practices positively affects corporate investment decisions. In addition, the presidential election periods increase the effectiveness of corporate investment decisions. The study results reveal that uncertainty in the economic and business environment over the impact of general elections increases the company's ability to generate higher investments. This study contributes to the company strategic alignment to justify management about investment prioritize in the stakeholder wealth through ESG disclosure. |
| format | Article |
| id | doaj-art-526f3beaffe040fba900d8686fcf021e |
| institution | Kabale University |
| issn | 2355-9462 2528-1143 |
| language | English |
| publishDate | 2024-03-01 |
| publisher | Universitas Syiah Kuala |
| record_format | Article |
| series | Jurnal Dinamika Akuntansi dan Bisnis |
| spelling | doaj-art-526f3beaffe040fba900d8686fcf021e2025-01-03T22:17:42ZengUniversitas Syiah KualaJurnal Dinamika Akuntansi dan Bisnis2355-94622528-11432024-03-0111113515410.24815/jdab.v11i1.3146617843Empirical Evidence of ESG Disclosure's Impact on Corporate Investment Decision in IndonesiaSuham Cahyono0Vira Ayu Damayanti1Ardianto ArdiantoArdianto ArdiantoUniversitas AirlanggaUniversitas AirlanggaThe purpose of this study is to investigate the impact of environmental, social, and governance (ESG) disclosure on corporate investment decisions. Data were collected from annual reports of firms listed in Indonesia Stock Exchange between 2015 and 2020 (378 firm-year observations). Using Ordinary Least Square (OLS) and fixed effect estimation, this study found that the dimension of ESG practices positively affects corporate investment decisions. In addition, the presidential election periods increase the effectiveness of corporate investment decisions. The study results reveal that uncertainty in the economic and business environment over the impact of general elections increases the company's ability to generate higher investments. This study contributes to the company strategic alignment to justify management about investment prioritize in the stakeholder wealth through ESG disclosure.https://jurnal.usk.ac.id/JDAB/article/view/31466 |
| spellingShingle | Suham Cahyono Vira Ayu Damayanti Ardianto Ardianto Ardianto Ardianto Empirical Evidence of ESG Disclosure's Impact on Corporate Investment Decision in Indonesia Jurnal Dinamika Akuntansi dan Bisnis |
| title | Empirical Evidence of ESG Disclosure's Impact on Corporate Investment Decision in Indonesia |
| title_full | Empirical Evidence of ESG Disclosure's Impact on Corporate Investment Decision in Indonesia |
| title_fullStr | Empirical Evidence of ESG Disclosure's Impact on Corporate Investment Decision in Indonesia |
| title_full_unstemmed | Empirical Evidence of ESG Disclosure's Impact on Corporate Investment Decision in Indonesia |
| title_short | Empirical Evidence of ESG Disclosure's Impact on Corporate Investment Decision in Indonesia |
| title_sort | empirical evidence of esg disclosure s impact on corporate investment decision in indonesia |
| url | https://jurnal.usk.ac.id/JDAB/article/view/31466 |
| work_keys_str_mv | AT suhamcahyono empiricalevidenceofesgdisclosuresimpactoncorporateinvestmentdecisioninindonesia AT viraayudamayanti empiricalevidenceofesgdisclosuresimpactoncorporateinvestmentdecisioninindonesia AT ardiantoardianto empiricalevidenceofesgdisclosuresimpactoncorporateinvestmentdecisioninindonesia AT ardiantoardianto empiricalevidenceofesgdisclosuresimpactoncorporateinvestmentdecisioninindonesia |