Quantitative Economics and Management Studies
Vol. 5 No. 1 (2024), Pages 135-141 · 2024-02-29
Articles | 2024-02-29
ESG Performance on Investment-Cash Flow Sensitivity: Case Study of Non-Financial Companies Listed on the Indonesian Stock Exchange
- Publication History
- Published online: February 29, 2024
- DOI
- https://doi.org/10.35877/454RI.qems2323
- Copyright
- Copyright (c) 2024 Novi Anri, Cynthia Afriani Utama
Abstract
This research aims to analyze the influence of ESG performance on Investment - Cash Flow Sensitivity of non-financial companies listed on the Indonesia Stock Exchange for the 2017-2022 period. ESG performance was measured using ESG ratings from Sustainalytics' ESG Research and Ratings, obtained from the Bloomberg Terminal database. Testing process was carried out on 50 registered non-financial companies in Indonesia for six years with a total of 300 observations obtained through purposive sampling techniques. The results of research employed panel balance data and the OLS method found that there are still phenomena Investment – Cash Flow Sensitivity occurred and good ESG performance could reduce Investment – Cash Flow Sensitivity. Thus, it can be indicated that companies implementing good ESG performance can more easily obtain funding sources.
Keywords
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How to Cite
Anri, N., & Utama, C. A. (2024). ESG Performance on Investment-Cash Flow Sensitivity: Case Study of Non-Financial Companies Listed on the Indonesian Stock Exchange. Quantitative Economics and Management Studies, 5(1), 135–141. https://doi.org/10.35877/454RI.qems2323
