The ESG, Corporate Governance, and Financial Performance: Does Audit Quality Matter?

Authors

  • Rika Adriyana Universitas Pekalongan
  • Nafisah Ika Habibatun Nisa Universitas Pekalongan

DOI:

https://doi.org/10.31941/jebi.v29i2.8149

Abstract

This study aims to examine the effect of Environmental, Social and Governance (ESG) factors, board size and institutional ownership on financial performance, with audit quality acting as a moderating variable. The study employs an explanatory quantitative approach, utilising secondary data in the form of annual reports and sustainability reports from energy sector companies listed on the Indonesia Stock Exchange for the period 2021–2025. Through purposive sampling, 95 company observations were obtained. The data were analysed using Partial Least Squares-Structural Equation Modelling (PLS-SEM) with the aid of WarpPLS 8.0. The results indicate that ESG and board size do not effect financial performance, whilst institutional ownership has a positive and significant effect on financial performance. Audit quality did not moderate the effects of ESG, board size or institutional ownership on financial performance. These findings suggest that institutional ownership is a stronger governance mechanism in explaining financial performance than ESG disclosure and the number of board members

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Published

2026-09-14

Issue

Vol. 29 No. 2 (2026): JURNAL EKONOMI DAN BISNIS SEPT 2026

Section

Artikel

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