ANALISIS PENGARUH ENVIRONMENT, SOSIAL AND GOVERNANCE (ESG) TERHADAP RETURN SAHAM

Abstract

This study examines the influence of Environmental, Social, and Governance (ESG) factors on stock returns in response to the growing integration of sustainability considerations into investment decision-making. Although ESG has become increasingly important in capital markets, empirical evidence regarding its impact on stock returns remains inconclusive. Using a qualitative literature review approach, this research synthesizes findings from reputable academic journals, financial reports, and institutional publications. The analysis applies signaling theory to explain how ESG disclosure serves as non-financial information that reduces information asymmetry between firms and investors. The findings indicate that the relationship between ESG performance and stock returns is context dependent and varies across ESG dimensions. Environmental and social performance can enhance corporate reputation and reduce long-term risk, although high implementation costs may negatively affect short-term returns. Governance performance demonstrates a relatively stronger and more consistent influence due to its direct association with transparency, accountability, and investor protection. Overall, ESG does not consistently generate higher short-term stock returns but plays a significant role in strengthening long-term firm value and investor confidence. This study positions ESG as a complementary factor in sustainable investment analysis rather than a standalone determinant of stock performance.