ANALISIS PENGARUH LEVERAGE DAN FIRM SIZE TERHADAP KINERJA PERUSAHAAN DENGAN ESG SEBAGAI VARIABEL MODERASI

Abstract

This study uses Environmental, Social, and Governance (ESG) as a moderating variable to examine how firm size and leverage affect business performance.  This study reports ESG scores for the study period using panel data from companies listed on the Indonesia Stock Exchange (IDX).  Panel data regression using the Random Effect Model (REM) approach, which is based on the Hausman test results and employs robust standard error (PCSE) to address heteroscedasticity and multicollinearity issues, is the analysis method employed. The findings demonstrate that: (1) leverage significantly affects business performance, (2) firm size significantly affects business performance, (3) ESG positively moderates the relationship between leverage and business performance, as shown by a coefficient of 0.011 and a probability of 0.04,  and (4) ESG negatively moderates the relationship between business size and business performance, as shown by a coefficient of -0.56 and a probability of 0.035.  In addition, the model's F-statistic score of 24.49 (probability 0.0000) indicates that it is significant.