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The Relationship between ESG Scores and Corporate Governance Practices on Corporate Financial Stability in the Infrastructure Sector in Indonesia

Year: 2024

Type: article

Abstract: This study examines the relationship between Environmental, Social, and Governance (ESG) scores and corporate governance practices on corporate financial stability in Indonesia's infrastructure sector. Using a quantitative approach, data were collected from 60 infrastructure companies through a Likert-scale questionnaire (1-5) and analyzed using SPSS version 25. The findings reveal that both ESG scores and corporate governance practices significantly and positively influence corporate financial stability, with governance practices showing a stronger impact. The results underscore the synergistic relationship between ESG and governance, highlighting their importance in mitigating risks and enhancing resilience in high-capital industries like infrastructure. These insights provide actionable recommendations for corporate leaders and policymakers to strengthen governance and sustainability practices, fostering long-term financial stability and competitiveness.

Source: West Science Accounting and Finance

DOI: 10.58812/wsaf.v2i03.1432

Authors: Loso Judijanto, Rina Destiana

Institution: Universitas Swadaya Gunung Jati

Language: English

Topic: Corporate Governance and Financial Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: diamond

OpenAlex ID: W4405338158

FWCI:

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