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ESG Performance and Firm Value – Do Busy Directors Help?

Sondang Zenita Sabatini, Cynthia Afriani Utama


ESG is an important issue in conducting a company's business. The implementation of ESG with good performance will lead the company be more prosperous and attractive to investors. This study examines how busy directors affect the increase in the value of companies that have good ESG performance by using sample of 41 public companies in Indonesia between 2017-2021. Data were obtained from Thomson Reuters and the companies' annual reports. By using ESG score as a proxy for ESG performance and the busy directors presence in public companies, their influence on the firm value can be determined. Using panel data regression shows there is a positive and significant influence between ESG performance and firm value, and there is no significant effect between busy directors and firm value. Furthermore, it also found that the influence of busy directors as a moderator weakened the positive impact of ESG performance on firm value.

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