PENGARUH KINERJA ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) TERHADAP RISIKO INVESTASI

Abstract

This research aimed to examine the effect of the performance of Environmental (E), Social (S), and Governance (G) on the investment risks at mining companies listed on the Indonesia Stock Exchange (IDX). The independent variables were the performance of Environmental, Social, and Governance which were measured by ENV, SOC, and GOV. While the dependent variable was investment risks, which were measured by RIS. The research was quantitative. Moreover, the population was mining companies listed on the Indonesia Stock Exchange (IDX). The data collection technique used purposive sampling. In line with that, there were 10 companies which fulfilled the criteria as the sample for 4 years. In total, there were 40 data samples. However, as there were 2 outlier data; the sample became 38. Furthermore, the data were secondary in the form of companies’ annual and sustainability reports during 2018-2021. Additionally, the data analysis technique used multiple linear with SPSS 26. Meanwhile, the data analysis was a classical assumption test that consisted of normality, multicollinearity, heteroscedasticity, and autocorrelation tests. The result concluded that the performance of environmental, social, and governance had a negative effect on investment risks.