PENGARUH ESG SCORING TERHADAP KEPUTUSAN INVESTASI DAN KINERJA SAHAM PERUSAHAAN DI PASAR MODAL INDONESIA

Stephanie Kezia Aiko Krisandy; Tiara Maulida; Susi Halimatusadiah

Stephanie Kezia Aiko Krisandy Universitas Pakuan
Tiara Maulida Universitas Pakuan
Susi Halimatusadiah Universitas Pakuan

Keywords: ESG scoring, investment decision, stock performance, capital market, sustainability

Abstract

This research investigates the impact of Environmental, Social, and Governance (ESG) ratings on investment choices and stock performance within the Indonesian capital market. The increasing global focus on sustainable investing has prompted investors to take into account non-financial aspects, such as ESG, in addition to conventional financial indicators. Nevertheless, the success of ESG practices in emerging markets like Indonesia is still in question. The objective of this study is to determine whether ESG ratings have a notable influence on investor actions and the performance of company stocks. The research utilizes a quantitative methodology, drawing upon secondary data from firms listed on the Indonesia Stock Exchange (IDX) that provide ESG or sustainability reports. A multiple linear regression analysis is conducted to assess the correlation between the dimensions of ESG (environmental, social, and governance) and stock performance, as well as investment choices.