Investment and sustainability: CSR, SDGs and the ESG Score in Indonesia
AbstractThis study examines how Corporate Social Responsibility (CSR) disclosure and Sustainable Development Goals (SDGs) affect investment decisions mediated by Environmental, Social, and Governance (ESG) scores. Structural Equation Modeling (SEM) was used to test the hypotheses of this study using...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2024.2328311 |
| _version_ | 1797260626669600768 |
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| author | Iqbal Lhutfi Unti Ludigdo Mohamad Khoiru Rusydi Zaki Baridwan |
| author_facet | Iqbal Lhutfi Unti Ludigdo Mohamad Khoiru Rusydi Zaki Baridwan |
| author_sort | Iqbal Lhutfi |
| collection | DOAJ |
| description | AbstractThis study examines how Corporate Social Responsibility (CSR) disclosure and Sustainable Development Goals (SDGs) affect investment decisions mediated by Environmental, Social, and Governance (ESG) scores. Structural Equation Modeling (SEM) was used to test the hypotheses of this study using the SmartPLS 3.0 programme. Testing the router model is done using algorithmic techniques, and the inner model is tested by bootstrapping and model testing using goodness of fit. By analysing data from 79 companies listed on the Indonesia Stock Exchange (IDX), we found that CSR and SDGs disclosures positively affect ESG scores. ESG scores also positively affect investment decisions as measured by earnings per share. The findings of this test indicate that ESG scores mediate the relationship between CSR disclosure and earnings per share in a statistically significant way. However, the mediation of ESG score on the relationship between SDGs disclosure and earnings per share was not found to have a significant effect. |
| first_indexed | 2024-04-24T23:28:19Z |
| format | Article |
| id | doaj.art-9864458da5904ed2a7e448f3b88f5bf1 |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-04-24T23:28:19Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-9864458da5904ed2a7e448f3b88f5bf12024-03-15T18:24:23ZengTaylor & Francis GroupCogent Business & Management2331-19752024-12-0111110.1080/23311975.2024.2328311Investment and sustainability: CSR, SDGs and the ESG Score in IndonesiaIqbal Lhutfi0Unti Ludigdo1Mohamad Khoiru Rusydi2Zaki Baridwan3Doctoral Programme of Accounting Science, Universitas Brawijaya, Malang, IndonesiaDepartment of Accounting, Universitas Brawijaya, Malang, IndonesiaDepartment of Accounting, Universitas Brawijaya, Malang, IndonesiaDepartment of Accounting, Universitas Brawijaya, Malang, IndonesiaAbstractThis study examines how Corporate Social Responsibility (CSR) disclosure and Sustainable Development Goals (SDGs) affect investment decisions mediated by Environmental, Social, and Governance (ESG) scores. Structural Equation Modeling (SEM) was used to test the hypotheses of this study using the SmartPLS 3.0 programme. Testing the router model is done using algorithmic techniques, and the inner model is tested by bootstrapping and model testing using goodness of fit. By analysing data from 79 companies listed on the Indonesia Stock Exchange (IDX), we found that CSR and SDGs disclosures positively affect ESG scores. ESG scores also positively affect investment decisions as measured by earnings per share. The findings of this test indicate that ESG scores mediate the relationship between CSR disclosure and earnings per share in a statistically significant way. However, the mediation of ESG score on the relationship between SDGs disclosure and earnings per share was not found to have a significant effect.https://www.tandfonline.com/doi/10.1080/23311975.2024.2328311CSR disclosureSDGs disclosureESG scoreinvestment decisionSandra AlvesHigher Institute of Accounting and Administration, University of Aveiro, Portugal |
| spellingShingle | Iqbal Lhutfi Unti Ludigdo Mohamad Khoiru Rusydi Zaki Baridwan Investment and sustainability: CSR, SDGs and the ESG Score in Indonesia Cogent Business & Management CSR disclosure SDGs disclosure ESG score investment decision Sandra Alves Higher Institute of Accounting and Administration, University of Aveiro, Portugal |
| title | Investment and sustainability: CSR, SDGs and the ESG Score in Indonesia |
| title_full | Investment and sustainability: CSR, SDGs and the ESG Score in Indonesia |
| title_fullStr | Investment and sustainability: CSR, SDGs and the ESG Score in Indonesia |
| title_full_unstemmed | Investment and sustainability: CSR, SDGs and the ESG Score in Indonesia |
| title_short | Investment and sustainability: CSR, SDGs and the ESG Score in Indonesia |
| title_sort | investment and sustainability csr sdgs and the esg score in indonesia |
| topic | CSR disclosure SDGs disclosure ESG score investment decision Sandra Alves Higher Institute of Accounting and Administration, University of Aveiro, Portugal |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2024.2328311 |
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