How ESG Performance Drives Corporate Performance: Can they protect the company during the COVID-19 crisis?

DOI

10.2991/978-2-38476-228-6_13How to use a DOI?

Keywords

ESG Performance; Covid-19 Crisis; Company Performance

Abstract

The COVID-19 phenomenon provides a reason to understand the impact of Environment, Social, and Governance (ESG) Performance on a company's business performance, especially when most businesses have gone bankrupt during difficult times. However, research in several countries shows that companies with good ESG performance tend to have better business performance. This study investigates two countries, Indonesia, a developing country, and Singapore, a developed country in ASEAN countries. This study uses a 3-stage data analysis technique, namely (1) the path analysis stage of all research data in each country, Indonesia and Singapore, during the 2017–2021 period and (2) the regression analysis stage, which separates the timeline before the Covid-19 pandemic ( 2017–2019) and during the Covid-19 pandemic (2020–2021). Stage 1 analysis will be used for decision-making research hypotheses, and stage 2 analysis will be used to enrich the analysis and see whether ESG performance influences protecting the company's performance during the crisis. The test results show that ESG performance in Indonesia and Singapore affects the company's business performance. All test results show that information on ESG performance in a certain period significantly affects company performance but has not become important information when entering a country's crisis period. In this case, the COVID-19 pandemic in the last three years has impacted the entire world's economy, so perhaps this has resulted in the influence of good ESG performance not being enough to protect the company's performance from the crisis. Therefore, this study enriches the literature by increasing the understanding of research in developed and developing countries. In addition, this study documents empirical findings on the topic of ESG and company performance during the crisis due to the COVID-19 pandemic.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - D. Narullia
AU  - M. Muhammad
AU  - S. A. Rahmawati
AU  - N. Cahayati
AU  - N. Fadhilah
PY  - 2024
DA  - 2024/06/12
TI  - How ESG Performance Drives Corporate Performance: Can they protect the company during the COVID-19 crisis?
BT  - Proceedings of the International Conference on Multidisciplinary Studies (ICoMSi 2023)
PB  - Atlantis Press
SP  - 143
EP  - 152
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-228-6_13
DO  - 10.2991/978-2-38476-228-6_13
ID  - Narullia2024
ER  -