The Effect Of Environmental, Social, And Governance (ESG) On Corporate Performance With Enterprise Risk Management (ERM) As A Mediating Variable

Azizah, Nur (2025) The Effect Of Environmental, Social, And Governance (ESG) On Corporate Performance With Enterprise Risk Management (ERM) As A Mediating Variable. International Journal of Economics, Business and Accounting Research (IJEBAR), 9 (4). pp. 1-14. ISSN 2614-1280

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Abstract

This study investigates how ESG practices relate to corporate outcomes, while considering ERM as a potential mediating construct within manufacturing firms listed on the Indonesia Stock Exchange between 2022 and 2024. Employing a quantitative approach and drawing upon secondary data from publicly available corporate disclosures, the analysis demonstrates that ESG engagement does not translate into a direct enhancement of firm performance. Interestingly, the evidence points to a negative and statistically significant association between ESG and ERM, suggesting that ESG adoption may substitute for certain non-financial risk management functions rather than complement them. Further examination indicates that ERM itself exerts no meaningful influence on performance and fails to operate as a mediating pathway between ESG and corporate outcomes. Viewed through the perspective of stakeholder theory, these findings imply that the effects of ESG and ERM on performance are contingent upon organizational characteristics and contextual dynamics rather than producing immediate or uniform benefits. Collectively, the results underscore the intricate challenges of integrating sustainability initiatives with risk governance frameworks in order to generate performance advantages within emerging market environments

Item Type:	Article
Uncontrolled Keywords:	ESG, ERM, Corporate Performance, Stakeholder Theory
Subjects:	Economic And Business > Accounting Economic And Business
Divisions:	Faculty of Economic and Business > Accounting Study Program Library of Congress Subject Areas > Accounting Study Program Accounting Study Program
Depositing User:	Nur Azizah
Date Deposited:	12 Jun 2026 02:15
Last Modified:	12 Jun 2026 02:15
URI:	http://eprints.umg.ac.id/id/eprint/16384

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