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THE INFLUENCE OF BOARD CHARACTERISTICS AND OWNERSHIP STRUCTURE ON ESG PERFORMANCE: EVIDENCE FROM INDONESIAN PUBLIC COMPANIES
Businesses in the 21st century increasingly emphasize Environmental, Social, and Governance (ESG) considerations as central to corporate strategy. This study investigates the effects of board characteristics and ownership structure on ESG performance in Indonesian public companies from 2016 to 2022. It explores how board size, gender diversity, meeting attendance, cash flow rights-control rights, and cash flow rights influence ESG scores, with ROA and financial leverage as control variables. The findings reveal significant relationships between various board characteristics and ESG performance. Smaller board size and higher gender diversity positively impact ESG scores, indicating the effectiveness of diverse and smaller boards in implementing sustainable practices. Additionally, frequent board meetings correlate with improved ESG performance, highlighting the importance of active board engagement. Further financial analysis shows that higher ROA is positively associated with ESG scores, while higher financial leverage has a negative impact. CFR-CR and cash flow rights do not significantly affect ESG performance, suggesting these ownership structure variables may be less critical in the Indonesian context. Based on stakeholder theory, this study emphasizes the importance of considering not only profit but also the triple bottom line: profit, people, and planet. The research contributes by exploring board characteristics alongside ownership structure, which are still rarely studied together in the context of ESG, particularly in Indonesia.
30007467 | 7467 | RLC MM (Rak Tesis) | Available |
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