The Role of ESG, Fundamental Factors, and Market Perception on Financial Performance: Evidence from LQ45 Firms in Indonesia

View Full Paper

Ask AI

Bookmark

Authors

Discussion

Quantitative analysis reveals ESG and capital structure significantly influence financial performance, suggesting the need for strategic management.

Effective management of capital structure leads to improved financial performance, enhancing profitability and market value.
Analysis of 169 datasets reveals ESG practices may not always yield immediate financial benefits, affecting profitability variants.
Adopting panel data regression analysis provides insights into the relationship between ESG, capital metrics, and corporate profits.
Findings indicate that larger asset bases can lead to reduced operational efficiency, challenging the assumption of size equating to financial success.

Zahrazova et al. (2025) studied this question.

View Full Paper

Ask AI

Bookmark

Quantitative analysis reveals ESG and capital structure significantly influence financial performance, suggesting the need for strategic management.